Philip Morris International Inc. (PMI) is a leading international tobacco company committed to creating a smoke-free future by expanding its portfolio beyond traditional tobacco and nicotine products. The company primarily sells cigarettes and smoke-free products, which include heat-not-burn, e-vapor, and oral nicotine products, as well as wellness and healthcare products through its Vectura Fertin Pharma business . PMI has invested significantly in developing innovative smoke-free products, with brands like IQOS and ZYN leading their smoke-free portfolio . The company's operations are organized into several geographical segments, focusing on different regions worldwide .
- Smoke-Free Products - Includes heat-not-burn, e-vapor, and oral nicotine products, with leading brands such as IQOS and ZYN driving the company's transition to a smoke-free future.
- IQOS - A heat-not-burn product designed to provide a smoke-free alternative to traditional cigarettes.
- ZYN - An oral nicotine product offering a smoke-free experience.
- Wellness and Healthcare - Focuses on inhaled therapeutics and oral delivery systems through the Vectura Fertin Pharma business, expanding PMI's reach beyond traditional tobacco products.
- Combustible Tobacco Products - Comprises traditional cigarettes and other tobacco products, continuing to contribute to the company's revenue.
- Geographical Segments - Organized into Europe, South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa (SSEA, CIS & MEA), East Asia, Australia, and PMI Duty Free (EA, AU & PMI DF), and the Americas, allowing PMI to cater to diverse markets worldwide.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
André Calantzopoulos ExecutiveBoard | Executive Chairman | None | André Calantzopoulos has been with PM since 1985, serving as CEO from 2013 to 2021. He became Executive Chairman in May 2021. | |
Emmanuel Babeau Executive | Chief Financial Officer | Board member of Davide Campari-Milano N.V. | Emmanuel Babeau joined PM as CFO in May 2020. He oversees financial operations and compliance, with prior experience at Schneider Electric and Pernod Ricard. | |
Frederic de Wilde Executive | President, South and Southeast Asia, CIS, Middle East and Africa Region | None | Frederic de Wilde joined PM in 1992 and has held various roles, including President of the European Union Region. He became President of his current region in January 2023. | |
Jacek Olczak Executive | Chief Executive Officer | None | Jacek Olczak has been the CEO since May 2021, having joined PM in 1993. He has held various roles, including COO and CFO, and played a pivotal role in PM's transformation and growth of reduced-risk products. | |
Lars Dahlgren Executive | President, Smoke-Free Oral Products & CEO of Swedish Match | None | Lars Dahlgren joined PM following its acquisition of Swedish Match, where he was CEO. He has been President, Smoke-Free Oral Products & CEO of Swedish Match since January 2023. | |
Reginaldo Dobrowolski Executive | Vice President and Controller | None | Reginaldo Dobrowolski has held various finance roles at PM and became Vice President and Controller in August 2021. | |
Stacey Kennedy Executive | President, Americas Region & CEO of PMI's U.S. Business | None | Stacey Kennedy joined PM in 1995 and has held various roles, including President of South and Southeast Asia Region. She became President, Americas Region & CEO of PMI's U.S. Business in January 2023. | |
Stefano Volpetti Executive | President, Smoke-Free Inhalable Products & Chief Consumer Officer | None | Stefano Volpetti joined PM in 2019 and has led smoke-free transformation efforts. He became President, Smoke-Free Inhalable Products & Chief Consumer Officer in January 2023. | |
Vassilis Gkatzelis Executive | President, East Asia, Australia, and PMI Duty Free Region | None | Vassilis Gkatzelis joined PM in 2003 and has held various roles in marketing and management. He became President of his current region in May 2024. | |
Werner Barth Executive | President, Combustibles Category & Global Combustibles Marketing | None | Werner Barth joined PM in 1990 and has held various marketing and commercial roles. He became President of Combustibles Category & Global Combustibles Marketing in November 2021. | |
Yann Guérin Executive | Senior Vice President and General Counsel | None | Yann Guérin joined PM in 2006 and has held various legal roles. He became Senior Vice President and General Counsel in July 2023. | |
Juan José Daboub Board | Director | Chairman, President, and CEO of The Daboub Partnership of Arcis, LLC; Vice Chairman of Dorado Partners LLC; President of the HUGE Business and Investment Council | Juan José Daboub has been a director at PM since 2021, with expertise in governance and sustainability. | |
Kalpana Morparia Board | Director | Board member of HSBC Holdings plc, Dr. Reddy’s Laboratories Ltd., and Hindustan Unilever Limited | Kalpana Morparia has been a director at PM since 2011, with strong leadership experience in finance and international business. | |
Lisa A. Hook Board | Lead Independent Director | Board member of Fidelity National Information Services, Inc. and Nokia Corporation | Lisa A. Hook has been a director at PM since 2018 and became Lead Independent Director in May 2023. She has extensive experience in telecommunications and digital transformation. | |
Robert B. Polet Board | Director | Chairman of SFMS B.V. and Arica Holding B.V.; Board Member of Safilo Group S.p.A. | Robert B. Polet has been a director at PM since 2011, bringing experience in global luxury brands and consumer goods. |
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One of your peers highlighted that in Europe, vapor is seeing greater success in fully converting smokers than heated tobacco; what are your latest thoughts on this topic, and are you seeing an acceleration in vapor adoption as you roll out VEEV in several markets?
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Regarding the illicit nicotine pouches entering the U.S. market that may infringe on your patents, could you expand on what measures you are currently taking or expect to take, and how do you think this will differ from the current environment we see in vapor in the U.S.?
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Considering your increased pricing guidance of 8% to 9% and yet positive volumes in combustible cigarettes, shouldn't FY '25 also be a strong year for cigarette volumes and pricing internationally, and can you touch on any disruptive excise tax hikes expected in the next few months?
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It looks like you modestly took down the top end of your potential deleveraging for this year; could you address what drove that, and with sizable maturities over 2025, are you considering pulling some of that refinancing forward into the remainder of this year, given where markets are opportunistically?
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With the ongoing supply constraints for ZYN in the U.S., what measures are you taking to match consumer demand, and how confident are you in your capacity expansion plans to meet future growth?
Research analysts who have asked questions during Philip Morris International earnings calls.
Bonnie Herzog
Goldman Sachs
6 questions for PM
Eric Serotta
Morgan Stanley
5 questions for PM
Faham Baig
UBS Group
4 questions for PM
Gaurav Jain
Barclays
3 questions for PM
Matthew Smith
Analyst
3 questions for PM
Damian McNeela
Deutsche Numis
2 questions for PM
Matt Smith
Bank of America
2 questions for PM
Mirza Faham Baig
UBS
2 questions for PM
Priya Ohri-Gupta
Barclays Capital
2 questions for PM
Callum Elliott
Bernstein
1 question for PM
Gerald Pascarelli
Needham & Company
1 question for PM
Philip Spain
JPMorgan Chase & Co.
1 question for PM
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
A competitor in the tobacco industry, which includes both traditional and innovative products. The company ended its commercial relationship with this competitor in the U.S. covering IQOS as of April 30, 2024. | |
A competitor in the tobacco industry, competing in both traditional and innovative product categories. | |
Japan Tobacco Inc. | A competitor in the tobacco industry, operating in both traditional and innovative product categories. |
Imperial Brands plc | A competitor in the tobacco industry, competing in both traditional and innovative product categories. |
Swedish Match AB | Acquired by the company in November 2022, this competitor was a leader in oral nicotine delivery with its ZYN brand. The acquisition has been a key milestone in the company's transformation to becoming a smoke-free company. |
State-owned tobacco enterprises | Competitors in various countries, including Algeria, Egypt, China, Taiwan, Thailand, and Vietnam, which may have different regulatory and market dynamics. |
New market entrants | Competitors in the non-combustible product category, which may alienate consumers through inappropriate marketing campaigns, messaging, and inferior product satisfaction. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Europe Region Distributor | Distributor | Europe | Accounted for 12% in 2023 , 13% in 2022 , and 13% in 2021 of consolidated net revenues. |
EA, AU & PMI DF Region Distributor | Distributor | East Asia, Australia & PMI Duty Free | Accounted for 11% in 2023 , 12% in 2022 , and 15% in 2021 of consolidated net revenues. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
United Tobacco Company (UTC) | 2024 | PMI acquired a controlling interest of 54.25% in UTC via an incremental purchase priced at a total of $315 million (including cash, contingent consideration, and assumed loans), with a fair value allocation of $655 million that supports manufacturing synergies in Egypt. |
Eastern Company | 2024 | PMI acquired an indirect 14.7% economic interest in Eastern Company, Egypt’s largest cigarette manufacturer, and later guaranteed up to $385 million in credit facilities until 2034 to bolster its influence under the equity method. |
Swedish Match AB | 2023 | PMI, through its subsidiary PMHH, completed the 100% acquisition of Swedish Match AB for $883 million by compulsorily redeeming the remaining shares, thereby advancing its transformation into a smoke‑free company through an enhanced portfolio in oral nicotine products. |
Philip Morris Tütün Mamulleri Sanayi ve Ticaret A.Ş. | 2022 | PMI acquired the remaining 25% stake (along with a 24.75% stake in the related subsidiary) from Sabanci Holding for approximately $223 million, consolidating full ownership and adjusting its capital structure. |
Philip Morris Pazarlama ve Satış A.Ş. | 2022 | PMI acquired the remaining 24.75% stake for approximately $223 million, resulting in a $30 million decrease in additional paid-in capital and a $171 million increase in accumulated other comprehensive losses from reclassified currency translation losses. |
Recent press releases and 8-K filings for PM.
- Effective January 1, 2026, PMI will launch two primary business units—PMI International and PMI U.S.—to accelerate its smoke-free evolution and improve organizational agility.
- The current four geographic reportable segments will be replaced by three new segments—International Smoke-Free, International Combustibles, and U.S.—with financial results reported on this basis starting in Q1 2026 and historical pro forma data for 2023–2025 to be disclosed thereafter.
- Frederic de Wilde is appointed CEO PMI International, and Stacey Kennedy remains CEO PMI U.S., both reporting directly to Group CEO Jacek Olczak.
- PMI will establish new U.S. and International Business Units effective January 1, 2026, replacing its four geographic segments with three reportable segments: International Smoke-Free, International Combustibles, and U.S., to enhance agility in pursuing a smoke-free future.
- Frederic de Wilde is appointed CEO of PMI International, and Stacey Kennedy will remain CEO of PMI U.S., both reporting to Group CEO Jacek Olczak.
- Financial results will be reported under the new segment structure starting Q1 2026, with select historical data for 2023–2025 to be disclosed following the full-year earnings announcement.
- As of June 30, 2025, PMI’s smoke-free products were available in 100 markets and used by over 41 million adult consumers, accounting for 41% of net revenues in the first nine months of 2025.
- Altria posted Q3 net revenues of $6,072 million (-3.0% vs. Q3 2024) and adjusted diluted EPS of $1.45 (+3.6% vs. Q3 2024).
- Through Q3, the company repurchased 12.3 million shares at an average price of $58.08, and in Q3 alone repurchased 1.9 million shares at $60.13 per share.
- The Board authorized an expansion of the share repurchase program from $1 billion to $2 billion, now expiring Dec. 31, 2026.
- Altria narrowed its 2025 full-year adjusted diluted EPS guidance to $5.37–$5.45, implying 3.5–5.0% growth from $5.19 in 2024.
- The company paid $1.7 billion of dividends in Q3, raised its annualized dividend to $4.24 per share (60th increase in 56 years) and targets mid-single-digit dividend growth through 2028.
- Issued five tranches of senior unsecured notes totaling $3.5 billion: $300 M floating-rate due Oct 27, 2028; $750 M 3.875% due Oct 27, 2028; $750 M 4.000% due Oct 29, 2030; $850 M 4.250% due Oct 29, 2032; and $850 M 4.625% due Oct 29, 2035.
- Fixed-rate notes priced between 99.855% and 98.743% of par, yielding 3.927% (2028) to 4.771% (2035); floating-rate notes priced at 100.000% with a coupon of SOFR + 0.660%.
- Notes rank equally with all existing and future senior unsecured indebtedness of PMI.
- Estimated net proceeds of approximately $3.46 billion before expenses; underwriting syndicate led by BBVA, BofA, Citi, Deutsche Bank, Wells Fargo, Goldman Sachs, HSBC and UBS.
- Emplicure plans to file a Premarket Tobacco Application with the US FDA to launch Seratek®, its patented rapid-delivery nicotine pouch, in the US following its European introduction.
- Social media discussion of nicotine pouches in the US has risen by 745% over the past two years, as demand outstrips supply; the global nicotine pouch market was worth USD 8 billion in 2024 and is forecast to exceed USD 100 billion by 2035.
- A 2025 pharmacokinetic study found Seratek® released 80% of nicotine within the first five minutes under controlled conditions; in a Sweden consumer test (n=123), Seratek® outperformed market leaders on flavour, comfort and discreteness.
- Barclays Equity Research predicts the US and Nordic regions will account for over two-thirds of global nicotine pouch growth, with the US market representing more than 60% of the total.
- Q3 net revenues of $10.8 bn, up 5.9% organically and 9.4% on an adjusted basis; adj. diluted EPS of $2.24, up 13.1% excl. currency (17.3% incl.)
- Smoke-free product shipments grew 16.6% YoY to 46.9 bn HTUs, driving total shipments +0.7% to 205 bn while combustible volumes declined 3.2%
- Organic net revenues from smoke-free products increased 13.9%, outpacing total PMI net revenue growth of 5.9%; smoke-free gross profit rose 14.8% vs. combustibles +4.8%
- Raised 2025 adjusted diluted EPS guidance to $7.46–7.56, reaffirming double-digit organic growth targets for shipments and revenues
- Adjusted diluted EPS of $2.24 (+17.3% YoY), organic net revenue growth of 7.5%, and adjusted operating income of $12.7 B (+12.5% organically) in Q3 2025.
- Strong smoke-free momentum with volumes up 16.6% (HTU shipments +15.5% to 41 B units) and organic net revenues +13.9%, driving 170 bps gross margin expansion to 67.9%.
- ZYN global can shipments rose 36% (US +37%) and off-take accelerated +39% in Q3 per Nielsen, supported by a $100 M free-can promotional investment.
- Full-year guidance raised: smoke-free volumes +12–14%, organic net revenue +6–8%, adjusted OI +10–11.5%, EPS +12–13.5% NC (+13.5–15.1% USD); dividend increased 8.9% to $5.88.
- Strong smoke-free momentum: IQOS, ZYN, and VEEV volume growth outpaced the industry, delivering $3 billion in Q3 smoke-free gross profit and record adjusted diluted EPS of $2.24, up 17%.
- Organic net revenue rose +5.9% (+7.3% ex-Indonesia), driving organic adjusted operating income growth of +7.5% (12.4% in USD) to $4.7 billion.
- Year-to-date performance: adjusted net income of $3.5 billion (+17.3% with a $0.08 currency tailwind), organic net revenue growth of +7.5%, and adjusted operating income of $12.7 billion (+12.5%).
- Updated full-year guidance: organic net revenue growth of +6% to +8%, adjusted operating income growth of +10% to +11.5%, EPS up +12% to +13.5% (currency neutral), and operating cash flow now expected above $11.5 billion.
- Dividend raised to $5.88 per share, marking the 18th consecutive annual increase of 8.9%, the largest since 2013.
- PMI’s Q3 reported diluted EPS was $2.23 (+13.2%), and adjusted diluted EPS was $2.24, up 17.3% (13.1% ex-FX).
- The smoke-free business represented 41% of net revenues, with shipment volumes +16.6%, net revenues +17.7% and gross profit +19.5% year-over-year.
- Q3 net revenues reached $10.8 bn (+9.4%), gross profit was $7.4 bn (+12.4%) and operating income was $4.3 bn (+16.7%; organic +7.5%).
- Raised full-year adjusted diluted EPS guidance to $7.46–$7.56, implying 13.5–15.1% growth over 2024 (12.0–13.5% ex-currency).
- PMI reported Q3 2025 reported diluted EPS of $2.23 (up 13.2%) and adjusted diluted EPS of $2.24 (up 17.3%); first nine-months adjusted EPS reached $5.83 (up 16.4%).
- Q3 net revenues were $10.8 billion (up 9.4%), with the smoke-free business generating $4.4 billion (up 17.7%); year-to-date revenues totaled $30.3 billion (up 7.5%).
- Smoke-free shipment volumes in Q3 rose 16.6% to 46.9 billion units, and up 14.3% year-to-date to 134.8 billion units, driving record smoke-free gross profit.
- PMI raised its 2025 full-year adjusted diluted EPS guidance to $7.46 – $7.56 per share, reflecting updated assumptions on volume, pricing and investments.
- The quarterly dividend was increased 8.9% to $1.47 per share (annualized $5.88).