According to Nasdaq news, Philip Morris International (PMI) has maintained its stable market growth trajectory through appropriate strategic pricing and focused research and development of smoke-free alternatives in the face of declining global tobacco sales. The tobacco giant is expected to become a predominantly smoke-free product company by 2025, according to industry forecasts.
According to Philip Morris International's third quarter 2023 financial statements, its smoke-free products accounted for 36.2% of overall net revenue in 2023, especially its heat-not-burn device IQOS. By the end of the third quarter, the total number of users was approximately 27.4 million (nearly 19.7 million people switched to IQOS and successfully quit smoking). PMI shares have risen 6.1% in the past three months, while the tobacco industry has gained 2.2%.
PMI's management is confident in its 2024-2026 CAGR targets, which include expected growth in organic revenue (sales revenue) in the range of 6-8%, organic operating income (operating profit) ) growth in the range of 8-10%, and adjusted EPS growth after currency fluctuations in the range of 9-11%.
