Marlboro’s Parent and Child Morris International Smoking Segment Power Q2 Gain
Marlboro’s parents Philip Morris International Inc. (NYSE:PM) After that stock was released on Tuesday, I saw it soaked Second quarter 2025 revenue report.
The cigarette giant’s revenue rose to 7.1% (+6.8% organic) from the previous year to $10.14 billion, but analysts missed a small amount Consensus estimates $10.3 billion.
However, Philip Morris offered an adjusted profit of $1.91 per share, surpassing both a $1.86 consensus and a $1.80-$1.85 administrative guidance.
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An important highlight of the report is the continued robust performance of the smoking ban business, which now accounts for a significant portion of the company’s finances.
Smoking-free products contributed 41% of total net revenue (up 2.9 percentage points from last year) and more than 42% of total profit (up 3.8 percentage points).
Shipping volumes for these products increased by 11.8%, net revenue increased by 15.2% (14.5% organically), and total profit increased by 23.3% (21.5% organically).
This highlights the strategic change towards the future of smoking bans for the company, as clarified by the CEO. Jacek Olczaknoted that these results “reflect the excellent momentum in our multi-category smoking cessation business.”
Within the smoking ban portfolio, inhalable non-smoking products, primarily focused on IQO, exceeded $3 billion in quarterly net revenue.
The company reported a re-fusion of HTU (heated tobacco unit)-tuned market sales (IMS) volumes that excludes inventory movements for distributors and wholesalers.
This was driven by commercial initiatives and significant improvements in Europe as the impact of the distinctive flavor ban on affected markets subsides.
The e-Vapor category, particularly the VEEV brand, has more than doubled its cargo volume, continuing to grow more and more profitable, as it is fueled primarily by strong performance in Europe.
In a key statement on the potential for next-generation products, Reuters quoted Philip Morris International CFO Emmanuel Babaud “I think the Vape brand Veev can have the same level of profitability as cigarettes.”
This demonstrates a strong belief in financial viability and a strong belief in the long-term potential of e-vapor delivery, which contributes substantially to overall profitability and reflects the margins traditionally associated with legacy flammable products.
In the oral smoking ban product segment, shipments amounted to 23.8%, which are equivalent to pouches or pouches driven primarily by nicotine pouches. These have more than doubled outside the US and Scandinavian countries, increasing by more than 40% in the US to 109 million cans, further diversifying the company’s smoking ban revenue stream.