PMI says Zyn supply constraints are easing

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Tobacco company Philip Morris International ( PMI ) saw revenue rise 8.4% to $9.9 billion in the third quarter of 2024 compared to the third quarter of 2023. In its third-quarter earnings call, on Tuesday, PMI said it shipped 149 million cans of Zyn for the third quarter. quarter and that supply limitations because modern oral nicotine pouches begin to ease.

In July, the Stamford, Conn.-based company announced plans to invest $600 million through one of its US subsidiaries to open a state-of-the-art manufacturing facility in Aurora, Colorado to help meet consumer demand for its state-of-the-art oral nicotine pouch.

“In the third quarter, we delivered an exceptionally strong performance, with record quarterly net income and earnings per share,” CEO Jacek Olczak said in a statement.

Olczak said this shows “excellent momentum across all regions and categories, with re-acceleration of sales growth in the Iqos-adjusted market, strong Zyn volumes and resilient fuel performance.”

PMI recently debuted the cigarette manufacturer’s heated tobacco product iqos in Austin, Texas. Through PMI’s “Be the First” pilot consumer experience, Austin adults 21 and older who smoke and live in designated areas can register at waiting list to be among the first in the U.S. to receive Iqos once it becomes available, PMI said.

PMI said in reporting its third quarter earnings iqos “continues to strengthen its overall position as the second-largest nicotine ‘brand’ in the markets where it is present and to drive growth in the no-burn heat category (capturing almost 77% of overall category volumes).”

On the fuels side, the cigarette maker reported net income grew 5.2% (8.6% organic), driven by another quarter of high single-digit prices and volumes from resistant industry.

“Both our portfolio of global brands and Marlboro achieved their highest quarterly market shares ever since the 2008 spin-offPMI said.

As a result of the strong year-to-date delivery, PMI raised its full-year growth outlook for adjusted diluted EPS to a range of 14% to 15%, excluding currency .

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