PMI’s fourth-quarter 2023 results reveal its heated tobacco product, IQOS, has overtaken its leading cigarette brand, Marlboro, in terms of net revenues for the first time.
“With IQOS now our top nicotine product—less than a decade since its launch—coupled with the fact that today it accounts for more than 50 per cent of our total net revenues in 25 markets, we’re demonstrating significant strides toward becoming a company that no longer sells cigarettes,” PMI said in a press release.
Backed by a robust business performance in 2023, it’s an achievement that brings into sharper focus the 2016 announcement of PMI’s ambition to deliver a smoke-free future—by providing adults who would otherwise continue to smoke with science-based better alternatives to cigarettes, PMI said.
“Our business delivered a strong finish to 2023 and we achieved a number of remarkable milestones on our path to becoming a smoke-free company,” said Jacek Olczak, PMI’s Chief Executive Officer.
“We are pleased that smoke-free products reached nearly 40 per cent of our total net revenues and over 40 per cent of our gross profit in the fourth quarter.
“This was led by the continued growth of IQOS, which has now surpassed Marlboro in terms of net revenues, confirming its position as the leading premium nicotine brand less than ten years from launch.”
Olczak also highlighted the success of PMI’s combination with Swedish Match, which produces leading nicotine pouches and snus products, one year after acquiring the company, adding that “very strong results” were “driven by the stellar US performance of nicotine pouch brand ZYN”—the fastest growing US smoke-free brand.
PMI believes that with the right regulatory encouragement and support from civil society, cigarette sales can end within 10 to 15 years in many countries.