Strong Smoke-Free Business Growth
Philip Morris International (PMI) reported outstanding volume growth across its smoke-free brands IQOS, ZYN, and VIVE, achieving more than $3 billion in quarterly smoke-free gross profit for the first time. This contributed to a 43.1% adjusted group operating income margin, the highest in almost four years.
Record Adjusted Diluted EPS Growth
The company achieved a 17% growth in adjusted diluted earnings per share to a record $2.24, driven by strong smoke-free product performance and cost efficiencies.
Geographic Expansion
IQOS was launched in Taiwan, marking the commercialization of smoke-free products in 100 markets. The multi-category strategy has been deployed in 25 markets.
Positive Market Dynamics in the U.S.
The U.S. market saw a significant Q3 acceleration in ZYN offtake growth to 39%, with shipments growing by 37% to 205 million cans.
Improved Combustible Performance
Combustible volumes, while declining by 3.2%, benefited from strong pricing, particularly in markets like Turkey and Egypt, contributing to a robust top-line performance.