Mixed results
Business performance
PM’s smoke-free business continued its momentum in the second quarter with double-digit growth in shipments, revenue and gross profit. Shipments grew 11.8%, revenue was up 15.2%, and gross profit rose 23.3%. The company’s smoke-free products are available in 97 markets and the business accounted for 41% of net revenues in Q2.
The smoke-free portfolio is led by IQOS, which exceeded $3 billion in revenues in Q2. IQOS continued its strong growth in Japan and Europe and also gained share in markets like Jakarta, Mexico City and Seoul. Within the oral smoke-free product category, shipment volume increased by 23.8% in Q2, led by nicotine pouches. Nicotine pouches volumes grew over 40% in the US and more than doubled internationally.
Within combustibles, net revenue grew 2.1%, helped by strong pricing. Cigarettes volume dropped 1.5% in the quarter. The Marlboro brand continues to gain market share and the company’s overall cigarette category share remained broadly stable.
Outlook
For the full year of 2025, PM expects organic revenue growth of 6-8%. Reported EPS is expected to be $7.24-7.37 while adjusted EPS is expected to be $7.43-7.56.