Philip Morris Lifts Outlook as Zyn Popularity Holds Strong

Published: 2025-04-23 08:05:14 ET PM

By Dean Seal

Philip Morris International gave its earnings outlook a bump after sustained momentum for its popular Zyn pouch brand powered its profit and revenue higher in the first quarter.

The tobacco company said it now expects adjusted earnings of $7.36 to $7.49 a share for the full year, up from its previous guidance for $7.04 to $7.17 a share.

"We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment," Chief Executive Jacek Olczak said.

Shares rose 3.8% to $170.30 in premarket trading.

For the first three months of the year, the company recorded a quarterly operating profit of $3.5 billion, up 16% from a year earlier.

Earnings were $1.72 a share, or $1.69 a share when adjusted for one-time items. Analysts polled by FactSet had been expecting adjusted earnings of $1.61 a share.

Revenue rose 5.8% to $9.3 billion, topping analyst projections for $9.14 billion, according to FactSet. Higher prices and volumes combined to drive the top line higher.

Shipment volumes for nicotine pouches were up 27%, with the company's Zyn pouches fueling most of that growth.

Shipments of Zyn topped 200 million cans, 53% higher year-over-year and blasting past the company's initial expectations as it brought more production capacity online.

Write to Dean Seal at [email protected]

(END) Dow Jones Newswires

04-23-25 0804ET