Philip Morris International Inc. (PMI) has released its third quarter results for 2023 with net revenues up by 9.3 per cent on an organic basis compared to the same time last year, according to PMI’s press release.

Net revenues increased by 9.3 per cent on an organic basis, driven by total cigarette and HTU shipment volume growth of 2.2 per cent (reflecting growth of 18 per cent for HTUs and a decline of 0.5 per cent for cigarettes), the favourable product mix impact of smoke-free products, and combustible tobacco pricing of 9 per cent, according to the press release.
Adjusted operating income increased by 11.3 per cent on an organic basis, reflecting a sequential acceleration as supply chain disruptions and ILUMA-related factors continued to dissipate, coupled with the favourable underlying dynamics of the company’s shift to smoke-free products. Adjusted operating income margin of 40.8 per cent increased by 1.4 points sequentially versus the second quarter.
As per the press release, adjusted diluted EPS of USD 1.67 increased by 20.3 per cent, excluding currency, driven primarily by the organic growth in adjusted operating income, as well as the results of the Swedish Match business and its strong performance led by ZYN in the U.S.
105.4 million cans of ZYN nicotine pouches were shipped in the US, representing growth of 65.7 per cent versus the third-quarter 2022 Swedish Match shipments of 63.6 million cans.
The total number of IQOS users at quarter-end is estimated at approximately 27.4 million (up by 0.2 million versus June 2023, reflecting normal seasonal quarterly trends), of which approximately 19.7 million had switched to IQOS and stopped smoking.
“We delivered a very strong performance in the third quarter, surpassing USD 9 billion in quarterly net revenues for the first time and generating record quarterly adjusted diluted EPS of USD 1.67, representing currency-neutral growth of 20.3 per cent,” said Jacek Olczak, Chief Executive Officer.
“This reflects continued excellent business momentum, driven by strong IQOS performance, resilient combustible trends and the exceptional growth of ZYN — which has surpassed our expectations yet again. As a result of our strong year-to-date delivery, we are raising our full-year growth outlook for adjusted diluted EPS to a range of 10 per cent to 10.5 per cent, excluding currency,” he concluded.