Damian McNeela's questions to Philip Morris International (PM) leadership • Q3 2025
Question
Damian McNeela from Deutsche Numis asked about the visibility and confidence behind the expected Q4 inventory adjustments for both IQOS and ZYN. He also inquired about the long-term sustainable price premium for ZYN in the U.S.
Answer
Emmanuel Babeau, Chief Financial Officer, explained that for IQOS, Q4 shipments are expected to align with accelerating in-market sales, with a potential modest reduction in channel inventory, leading to an estimated $2 billion adjustment. For ZYN, he noted an expected 20-30 million can inventory reduction at wholesaler/distributor levels, delayed from Q3 but still anticipated in Q4, though with slightly less certainty. Regarding ZYN's sustainable price premium, Babeau stated that while he couldn't provide a specific number, ZYN's growth and unique consumer connection in the U.S. justify and will maintain a 'very nice premium.'