Philip Morris International: Smoke-free products reached nearly 40% of total PMI net revenues in the fourth quarter 2023, and over 40% of gross profit.

As of December 31, 2023, Philip Morris International’s smoke-free products were available in 84 markets, including 25 markets with smoke-free products accounting for more than 50% of the company’s total top-line in 2023

Dubai – UAE, 1 April 2023 – Philip Morris International, the world’s leading tobacco company, listed on the New York Stock Exchange under the symbol (NYSE: PM), announced its quarterly net revenues for the fourth quarter of 2023, where net revenues from heated tobacco products “IQOS” exceeded Marlboro cigarettes, making it the number one nicotine product in the world on this measure.

The company has achieved sales growth for the third year in a row, driven by a 15% increase in sales of “IQOS” products.

“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, Chief Executive Officer.

“We are pleased that smoke-free products reached nearly 40% of our total net revenues and over 40% 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 10 years from launch. The fourth quarter also marked the first anniversary of our combination with Swedish Match, which delivered very strong results in 2023 driven by the stellar U.S. performance of ZYN.” “We are entering 2024 with strong momentum, and we expect it will be another year of excellent performance underpinned by an acceleration in organic smoke-free net revenue and profit growth.

As of December 31, 2023, Philip Morris International’s smoke-free products were available in 84 markets, including 25 markets with smoke-free products accounting for more than 50% of the company’s total top-line in 2023. IQOS ILUMA products are now available in 51 markets as we expect the number of adult users of ILUMA to reach more than 17 million.

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Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products.

Since 2008, PMI has invested $12.5 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products. As of December 31, 2023, PMI’s smoke-free products were available for sale in 84 markets, and PMI estimates that approximately 20.8 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 37% of PMI’s total full-year 2023 net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma business, aims to enhance life through the delivery of seamless health experiences. For more information, please visit http://www.pmi.com and http://www.pmiscience.com