Philip Morris sales boosted by growth in international business

Philip Morris International recorded higher revenue in the second quarter, boosted by growth in its international business and its Zyn portfolio in the U.S.

The tobacco company on Wednesday posted earnings of $1.80 a share, compared with $1.95 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $2.20, ahead of the $2.03 anticipated by analysts, according to FactSet.

Revenue rose 10% to $11.19 billion. Analysts surveyed by FactSet forecast revenue of $10.60 billion.

Sales in Philip Morris’ smoke-free business increased 11.7%, while combustibles revenue was up 9.5%. The smoke-free business accounted for 42% of total sales.

In the U.S., Zyn nicotine pouches led sales, partially offsetting declines in cigar sales. Overall revenue in the U.S. fell 0.7%. Zyn shipments increased 1.8% to 2.9 billion pouches, and the company expanded its Zyn portfolio during the quarter.

Internationally, smoke-free sales jumped 14%. Cigarette volume grew in Turkey, Indonesia and Egypt, outweighing declines in other markets.

The Middle East conflict has had a minor impact on the business so far, mainly pushing up costs for transportation, energy and other inputs, Philip Morris said.

“While we have observed increased energy prices and some disruption in energy supply in a number of markets, it has not yet resulted in a discernible shift in consumer behavior,” the company said.

For the full year, the company is expecting adjusted earnings per share of $8.26 at the midpoint, compared with the $8.36 a share analysts are forecasting.

Write to Katherine Hamilton at [email protected]