Philip Morris International announced its fourth-quarter and full-year results for 2023.
The company’s net revenues for 2023 reached $35.2 billion, a 10.7% increase from 2022, with smoke-free products contributing significantly to this growth. Smoke-free product net revenues saw a substantial 26.0% year-over-year increase, accounting for approximately 36.5% of total net revenue.
“We are pleased that smoke-free products reached nearly 40% of our total net revenues and over 40% of our gross profit in the fourth quarter. This was led by the continued growth of IQOS, which has now surpassed Marlboro in terms of net revenues, confirming its position as the leading premium nicotine brand less than 10 years from launch,” said Jacek Olczak, chief executive.
Despite the growth in smoke-free products, the company’s operating income declined by 5.6% to $11.6 billion, which the company attributed to supply chain disruptions and the impact of the ILUMA product introduction, reported the Asian Trader. Total cigarette and heated tobacco unit (HTU) shipment volume grew by 1.0%, with HTUs experiencing a notable 14.7 %increase.
“Our business delivered a strong finish to 2023 and we achieved a number of remarkable milestones on our path to becoming a smoke-free company,” said Olczak. “The fourth quarter also marked the first anniversary of our combination with Swedish Match, which delivered very strong results in 2023 driven by the stellar U.S. performance of ZYN.”
ZYN nicotine pouch shipment volume in the United States reached 384.8 million cans, representing 62% growth versus 2022. Growth is expected to continue this year with the company looking to ship more than 520 million cans, bolstering the Marlboro maker’s full-year forecast, reported CNN.
According to CNN, Zyn attracted the attention of Gen-Z consumers, who have become loyal buyers of the product.
“We are entering 2024 with strong momentum, and we expect it will be another year of excellent performance underpinned by an acceleration in organic smoke-free net revenue and profit growth,” Olczak said.
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