Philip Morris International Inc

Strong Q1 Performance: Philip Morris International (PMI) reported a robust start to 2025, with organic net revenue growth of +10.2% year-on-year, reaching $9.3 billion. Adjusted diluted EPS rose by +17.3% in constant currency and +12.7% in dollar terms to $1.69, bolstered by a strong smoke-free business that accounted for 44% of total gross profit.

Smoke-Free Business Growth: The smoke-free segment, including IQOS and ZYN, showed impressive performance with shipment volume growth of +14.4% and organic net revenue growth of +20%. Gross profit for smoke-free products increased by +33%, leading to a significant 670 basis points organic gross margin expansion, surpassing 70%.

Revised Growth Forecasts: PMI raised its full-year adjusted diluted EPS guidance to $7.36 to $7.49, reflecting an expected growth rate of +12% to +14% in dollar terms. This optimism is driven by continued strong momentum in the smoke-free category and effective multi-category deployment strategies.