Philip Morris, revenues over 40 billion thanks to smoke-free business
The 2025 accounts paint a very positive picture thanks to the business of products that heat (without burning) nicotine, which grew by 15 per cent to almost 17 billion in total volume. Cagr targets revised. Since the beginning of the year, the share price has risen by more than 25 per cent
Tobacco giant files record accounts thanks mainly to smoke free products. "We achieved another year of outstanding results in 2025, with a fifth consecutive year of volume growth, net revenues in excess of $40 billion, of which nearly $17 billion came from our smoke-free business, and excellent operating margin expansion." This was stated by Philip Morris International Group CEO Jacek Olczak, commenting on Friday on the 2025 results. The company reported an increase in earnings in the fourth quarter, thanks in part to strong sales of smokeless products such as Zyn nicotine sachets, and said adjusted diluted earnings per share rose to $1.70 in the period, exceeding analysts' estimates of $1.68.
Net revenues stood at USD 40.6 billion, up 7.3 per cent year-on-year (+6.5 per cent organically), driven by the significant contribution of the smoke-free business (smoke-free business) which grew 15 per cent to USD 16.9 billion (+14.1 per cent organically), with annual shipment volumes up 12.8 per cent. At the same time, the traditional business consolidated at 23.8 billion (+2.5% year-on-year; +1.8% organic).
On the profitability front, adjusted diluted earnings per share for the full year came in at $7.54, an increase of 14.8% over 2024 (14.2% on a currency-neutral basis), significantly exceeding the reported earnings per share of $7.26.
Analysing the performance of individual products, Iqos (electronic tobacco warming devices developed by Philip Morris as an alternative to traditional cigarettes) continue to dominate the global scene in the heat-not-burn category, where the company holds a volume share of around 76%. Despite intensifying competition, these products retain almost 70% of the category's volume and remain the second largest nicotine 'brand' in the markets where it is present, taking absolute leadership in 13 markets. The smokeless products business is now well established, accounting for 41.5% of total net revenue (up from almost 39% in 2024) and almost 43% of gross profit, up 2.8 and 3.2 percentage points respectively year-on-year.
'In ten years in the world,' Massimo Andolina, European president of the American tobacco giant, explained last September at the press conference on the economic impact (between 2019 and 2023) of the group in the European Union, 'we have shifted around 40 per cent of our turnover to non-combustion solutions. In Europe we have done even better, reaching 46 per cent'. The ambitions for the future of the group are to follow this path, raising the bar up to 80 per cent.
