Philip Morris International (PMI) saw quarterly shipments of HTU and oral smoke-free products exceeding 40 billion units for the first time last quarter, driving its smoke-free business to a “superior performance,” with full-year net revenues increasing by 14.2%, according to a press release.

The smoke-free business accounted for 40% of PMI’s total net revenue and around 42% of gross profit (up by 0.7 percentage points and 0.9 percentage points respectively, versus fourth-quarter 2023), with 38.6 million estimated adult users of its smoke-free products (up by 5.3 million versus December 2023), which are now available in 95 markets reported PMI.

"2024 was a remarkable year for PMI. We delivered very strong full-year results driven by the continued growth of IQOS and ZYN in addition to a robust combustibles performance," said Jacek Olczak, chief executive officer. "With strong momentum across all categories, we are confident that our smoke-free transformation and unparalleled brand portfolio will continue to deliver excellent performance and create value for our shareholders in 2025 and for the long term."

“In the fourth quarter, we delivered 9.2% net revenue growth (9.0% organically) and 15.1% gross profit growth (both reported and organically), despite a tough comparison due to shipment phasing,” said PMI.

Looking at 2025, PMI estimates “total cigarette and smoke-free product shipment volume growth of up to 2% driven by smoke-free products, volume growth of 12% to 14% … and an acceleration in U.S. nicotine pouch shipment volume to reach 780 to 820 million cans, representing growth of 34% to 41%.”

Last month, NACS Daily reported that the U.S. Food and Drug Administration (FDA) authorized the marketing of 20 Zyn nicotine pouch products through the premarket tobacco product application (PMTA) pathway after an extensive scientific review. This is “the first time the agency has authorized products commonly referred to as nicotine pouches.”