Core Insights - Coatue Management holds $236.48 million worth of shares in Philip Morris International Inc. (PM), representing 0.66% of its total 13F portfolio, indicating significant interest from institutional investors [1] - Philip Morris International Inc. is expanding its U.S. operations with a $37 million investment to enhance its manufacturing facility in Wilson, North Carolina, which is crucial for its smoke-free product strategy [2][3] - The company is adding a new production line for TEREA, consumables for its IQOS ILUMA heated tobacco system, as part of its strategy to scale smoke-free alternatives amid regulatory advancements [3] - UBS has highlighted increasing competition in the U.S. nicotine pouch sector, which may impact revenue projections for Philip Morris's ZYN brand, leading to a "Hold" rating with a $166 price target [4] - Analysts are closely monitoring Philip Morris's smoke-free transformation and advancements in its IQOS products, reflecting the company's focus on reduced-risk offerings [5]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Financial Data and Key Metrics Changes - The company reported a record adjusted diluted EPS of $2.24, reflecting a 17% growth year-over-year [3][8] - Adjusted operating income grew by 7.5% organically and 12.4% in dollar terms to $4.7 billion, with a margin expansion of 120 basis points [7][11] - Organic net revenue growth was 7.5%, or approximately 9% excluding the Indonesia technical impact, driven by strong smoke-free performance [8][10] Business Line Data and Key Metrics Changes - The global smoke-free business achieved over $3 billion in quarterly gross profit for the first time, with a 16.6% volume growth in smoke-free products [3][4] - IQOS saw a 9% growth in HTU adjusted in-market sales and a 15.5% growth in ET tobacco unit shipments [4][9] - ZYN can shipments grew by 36% globally, with a 39% off-take growth in the U.S. [16][22] Market Data and Key Metrics Changes - The smoke-free product portfolio outpaced the industry with over 12% estimated IMS volume growth year-to-date compared to less than 10% for the industry [14][15] - In Europe, markets like Italy, Greece, and Spain showed excellent growth across all smoke-free categories [18][20] - The U.S. nicotine pouch category has been growing at more than 40% over the last 18 months, with ZYN capturing a significant market share [25][27] Company Strategy and Development Direction - The company is focused on geographic expansion, with smoke-free products now available in 100 markets, and is investing in multi-category strategies [4][14] - Continued investment in marketing and brand equity for ZYN and IQOS is planned, with expectations for sustained growth in the U.S. market [14][63] - The company aims to maintain a premium positioning for ZYN while expanding its market presence [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit adjusted operating income and EPS growth for the year, despite anticipated challenges in Q4 [30][32] - The company expects a normalization in promotional activities for ZYN, which may impact short-term performance but is seen as necessary for long-term growth [41][42] - Management highlighted the resilience of the combustible business and the ongoing strong performance of smoke-free products [35][30] Other Important Information - The company raised its dividend for the 18th consecutive year to $5.88 per share, reflecting strong year-to-date performance [36] - A planned $2 billion cost-saving objective over 2024-2026 is on track, with ongoing cost efficiency measures [14][34] Q&A Session Summary Question: Clarification on ZYN's growth and October performance - Management confirmed ZYN's market leadership with over 60% share and noted that promotional activities are returning to normal levels, which may impact short-term growth [39][41] Question: Insights on IQOS shipments versus IMS - Management acknowledged a discrepancy between HTU shipment growth and IMS growth, expecting alignment in Q4 while maintaining strong performance in the long term [45] Question: Investment levels and future expectations for ZYN - Management clarified that the $100 million investment in Q3 was a one-off related to promotional activities, with expectations for ZYN to maintain best-in-class margins moving forward [51][52]

Financial Data and Key Metrics Changes - The company reported a record adjusted diluted EPS of $2.24, reflecting a growth of +17% year-over-year [3][8] - Adjusted operating income grew by +7.5% organically and +12.4% in dollar terms to $4.7 billion, with an adjusted operating income margin of over 43% [7][8] - Organic net revenue growth was +7.5%, or around +9% excluding the Indonesia technical impact, driven by strong smoke-free performance and robust pricing [8][10] Business Line Data and Key Metrics Changes - The global smoke-free business achieved over $3 billion in quarterly gross profit for the first time, with smoke-free net revenues growing organically by +13.9% [3][10] - IQOS saw a +9% adjusted in-market sales growth and +15.5% growth in tobacco unit shipments, reflecting strong momentum in Europe, Japan, and global markets [4][9] - ZYN can shipments grew by +36% globally, with a notable +39% off-take growth in the U.S. [16][20] Market Data and Key Metrics Changes - The company’s smoke-free products are now commercialized in 100 markets, with a significant presence in the U.S., Europe, and Japan [4][15] - The overall smoke-free category is estimated to have grown by over +12% year-to-date, compared to less than 10% for the industry [14][15] - In Japan, IQOS continues to grow robustly, with Q3 adjusted IMS growth of +6% [19] Company Strategy and Development Direction - The company is focused on geographic expansion and deploying a multi-category strategy to enhance growth, with all smoke-free brands now commercialized together in 25 markets [4][14] - Continued investment in marketing and brand equity for ZYN and IQOS is planned, with expectations for sustained growth in the nicotine pouch category [14][25] - The company aims to maintain a premium positioning for ZYN while expanding its market share in the nicotine pouch category [23][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving another year of double-digit adjusted operating income and EPS growth, despite anticipated challenges in Q4 [28][30] - The company expects a slower quarter in Q4 due to inventory adjustments and a higher tax rate, but maintains a positive long-term growth outlook [31][32] - Management highlighted the resilience of the combustible business and the strong performance of the smoke-free portfolio as key drivers for future growth [34] Other Important Information - The company raised its dividend by +8.9% to $5.88 per share, marking the 18th consecutive year of dividend increases [35] - A planned $2 billion cost-saving objective over 2024-2026 is on track, supported by ongoing cost efficiency measures [14][33] Q&A Session Summary Question: Clarification on ZYN's growth and October performance - Management confirmed ZYN's leadership in the nicotine pouch market and noted that promotional activities are returning to normal levels, which may impact growth rates [38][41] Question: Insights on IQOS shipments versus IMS - Management acknowledged a discrepancy between HTU shipments and IMS growth, expecting alignment in Q4 while maintaining a positive outlook for IQOS performance [45] Question: Future investment levels in the U.S. market - Management clarified that the recent $100 million investment was a one-off related to promotional activities, with ongoing investments planned for ZYN and IQOS [51][60] Question: Impact of promotional strategies on new consumer acquisition - Management indicated that the recent free can promotion successfully attracted new consumers, although specific metrics on new customer acquisition were not disclosed [66][68]

Financial Data and Key Metrics Changes - The company reported a record adjusted diluted EPS of $2.24, reflecting a 17% growth year-over-year [3][7] - Adjusted operating income grew by 12.4% in dollar terms to $4.7 billion, with an adjusted operating income margin of over 43%, the highest in almost four years [3][6] - Organic net revenue growth was 7.5%, or approximately 9% excluding the Indonesia technical impact, driven by strong smoke-free performance and robust pricing [7][9] Business Line Data and Key Metrics Changes - The global smoke-free business achieved over $3 billion in quarterly gross profit for the first time, with smoke-free volume growth of 16.6% in Q3 [3][8] - IQOS saw a 9% growth in HTU adjusted in-market sales, while ZYN can shipments grew by 36% globally [4][15] - Combustibles delivered a good Q3 with better-than-expected volumes in Turkey and Egypt, despite a 3.2% decline in cigarette volumes [5][10] Market Data and Key Metrics Changes - The company’s smoke-free products are now commercialized in 100 markets, with a significant presence in Europe, Japan, and the U.S. [4][14] - In the U.S., ZYN captured the majority of Q3 category growth in both volume and value terms, with a 39% off-take growth [19][20] - International can volumes increased by 27%, with over 100% growth excluding Nordic countries [5][16] Company Strategy and Development Direction - The company is focused on geographic expansion and deploying a multi-category strategy to enhance growth, with all smoke-free brands now commercialized together in 25 markets [4][14] - Continued investment in marketing and brand equity for ZYN and IQOS is planned, with a target of $2 billion in cost savings over 2024-2026 [13][24] - The company anticipates maintaining a premium positioning for ZYN while expanding its market share in the nicotine pouch category [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit adjusted operating income and EPS growth in currency-neutral terms for the year [6][29] - The company expects a slower quarter in Q4 due to inventory adjustments and a higher tax rate, but maintains a positive outlook for continued growth in smoke-free products [30][54] - The anticipated adjusted effective tax rate for the year is around 22%, with expectations of strong performance from the smoke-free business [30][31] Other Important Information - The company raised its dividend for the 18th consecutive year to $5.88 per share, reflecting strong year-to-date performance and confidence in future growth [34] - The company is on track to exceed its 2024-2026 CAGR targets, indicating a strong growth profile within consumer packaged goods [32][33] Q&A Session Summary Question: Clarification on ZYN's growth and October performance - Management confirmed ZYN's leadership in the nicotine pouch market with over 60% market share and noted that the category has been growing between 30% and 40% [36][37] - The special promotion in Q3 was aimed at creating awareness and capturing market share, with a normalization of promotional activity expected moving forward [38][39] Question: Investment levels and margin structure for ZYN - The $100 million investment in Q3 was a one-off related to the special promotion, and management expects ZYN to maintain best-in-class margins despite increased promotional activity [48][50] - Future investments will continue to support both ZYN and IQOS, with a focus on building commercial presence and marketing capabilities in the U.S. [56][58] Question: Drivers behind full-year dollar EPS growth guidance raise - Management indicated that the EPS growth is driven by strong operating income growth, improved tax rates, and favorable interest costs [59][60] - The company remains optimistic about achieving strong growth in Q4, despite some technical impacts on inventory and pricing [53][54]

Financial Data and Key Metrics Changes - The company reported a record adjusted diluted earnings per share (EPS) of $2.24, reflecting a growth of 17% year-over-year [6][12][48] - Adjusted operating income (OI) grew by 12.4% in dollar terms to $4.7 billion, with an adjusted OI margin expansion of 120 basis points to 43.1% [11][20][45] - Organic net revenue growth was 7.5%, driven by strong smoke-free performance and robust pricing [12][14][44] Business Line Data and Key Metrics Changes - The smoke-free business achieved over $3 billion in quarterly gross profit for the first time, with a gross margin of 70% [6][17][19] - IQOS saw a 9% growth in heated tobacco unit (HTU) adjusted in-market sales, with HTU shipments growing by 15.5% [7][13][24] - ZYN can shipments grew by 36% globally, with a strong presence in 47 markets [25][31] Market Data and Key Metrics Changes - The company’s smoke-free products are now commercialized in 100 markets, with a significant launch in Taiwan [6][7] - In the U.S., ZYN captured the majority of category growth in both volume and value terms, holding over 60% market share [31][38] - The nicotine pouch category in the U.S. has been growing at over 40% over the last 18 months [37][38] Company Strategy and Development Direction - The company is focused on geographic expansion and multi-category strategy to enhance growth, with all smoke-free brands now commercialized together in 25 markets [6][7][22] - Continued investment in marketing and brand equity for ZYN and IQOS is planned, with expectations for sustained growth in the U.S. market [21][78] - The company aims to maintain best-in-class margins for ZYN while normalizing promotional activities [67][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in adjusted operating income and EPS for the year, despite anticipated slower growth in Q4 [43][45][46] - The company expects a continued strong performance from its smoke-free business, with an acceleration in IQOS sales growth [46][70] - Management acknowledged the impact of increased promotional activities and a higher tax rate on Q4 performance but remains optimistic about long-term growth [72][74] Other Important Information - The company raised its dividend by 8.9% to $5.88 per share, marking the largest increase since 2013 [49] - A one-off investment of $100 million was made in Q3 for promotional activities, which is not expected to recur [60][66] Q&A Session Summary Question: Clarification on ZYN's growth and October performance - Management confirmed ZYN's market leadership with over 60% share and noted that promotional activities were normalized in Q3, impacting growth dynamics [53][54][56] Question: Details on ZYN's margin structure and investment levels - Management clarified that the $100 million investment was a one-off related to promotional activities and that they expect to maintain best-in-class margins moving forward [66][67] Question: Drivers behind full-year dollar EPS growth guidance - Management indicated that strong operating income growth and favorable tax and interest cost dynamics contributed to the raised EPS guidance [81][82]

Core Insights - Philip Morris reported quarterly earnings of $2.24 per share, exceeding the Zacks Consensus Estimate of $2.1 per share, and up from $1.91 per share a year ago, representing an earnings surprise of +6.67% [1] - The company achieved revenues of $10.85 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.32% and increasing from $9.91 billion year-over-year [2] - Philip Morris shares have increased approximately 31.3% year-to-date, outperforming the S&P 500's gain of 14.5% [3] Earnings Outlook - The future performance of Philip Morris stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $1.81 on revenues of $10.7 billion, and for the current fiscal year, it is $7.51 on revenues of $40.84 billion [7] Industry Context - The Tobacco industry, to which Philip Morris belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Philip Morris stock may be influenced by the overall industry outlook, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Performance - Q3 2025 adjusted diluted EPS reached $2.24[12], while YTD adjusted diluted EPS reached $5.83[14] - Q3 2025 net revenues totaled $10.8 billion[12], and YTD net revenues reached $30.3 billion[14] - The company is raising its adjusted diluted EPS forecast to $7.46-$7.56, including a $0.10 favorable currency impact[75] - The company is raising its operating cash flow forecast to over $11.5 billion[75] Smoke-Free Products (SFP) Growth - SFP expansion continues, now in 100 markets[5] - Q3 2025 total shipment volume was 204.9 billion units, with smoke-free products accounting for 46.9 billion units, a 16.6% increase vs PY[20] - YTD September 2025 total shipment volume was 592.7 billion units, with smoke-free products accounting for 134.8 billion units, a 14.3% increase vs PY[20] - VEEV volumes increased by 91% vs PY in Q3 2025[45] Regional Performance - Europe Q3 2025 IQOS, ZYN & VEEV shipment growth was +13%[48] - In Japan, PMI HTU adjusted share of market in Q3 2025 was 31.7%, a +1.8 percentage point increase vs PY[50] - In the U S, ZYN Nielsen retail value share reached 66.8% in Q3 2025[54] ZYN Performance - Global ZYN markets increased by 36% vs PY[43] - U S ZYN volumes increased by 37% vs PY[43] - International Nicotine Pouch Volumes increased by 27% vs PY[43]

Core Insights - Philip Morris International reported stronger-than-expected results for the third quarter, driven by growth in its smoke-free segment [4] - The company raised its profit outlook for the year, indicating positive momentum in its business operations [4] - Despite the positive earnings report, shares turned negative after an initial spike, attributed to the midpoint of the new profit guidance being lower than market expectations [4] Financial Performance - The third-quarter results exceeded analysts' expectations, showcasing the effectiveness of the company's transition towards smoke-free products [4] - The new profit guidance reflects a strategic adjustment in response to market conditions and operational performance [4] Market Reaction - Following the earnings announcement, there was a brief increase in share price, but it subsequently turned negative, highlighting market volatility and investor sentiment [4] - The reaction suggests that while the company is performing well, investor expectations may have been set higher than the revised guidance [4]

Core Viewpoint - 22nd Century Group, Inc. is set to host a webcast on November 4, 2025, to discuss its third quarter results for 2025, highlighting its ongoing leadership in tobacco harm reduction and nicotine consumption control [1][2]. Company Overview - 22nd Century Group is a pioneer in the tobacco harm reduction movement, focusing on enabling smokers to manage their nicotine consumption [4]. - The company has developed proprietary non-GMO reduced nicotine tobacco plants that contain 95% less nicotine than traditional tobacco plants, supported by an extensive patent portfolio [5]. Products - The flagship product, VLN cigarette, utilizes low nicotine tobacco, providing traditional smokers with a familiar alternative that helps reduce nicotine consumption by 95% compared to regular cigarettes [6]. - VLN cigarettes are the only low nicotine combustible cigarettes authorized by the FDA in the United States [7]. Webcast Details - The webcast will feature Larry Firestone, CEO, and Dan Otto, CFO, who will review financial results and discuss recent progress and future plans for 2025 [2][3].