Tobacco giant Philip Morris International saw its revenue rise by 10.4 per cent and its operating profit by 22 per cent (year-on-year) in the second quarter, according to its financial statements.
Operating profit for April–June stood at $4.53 billion, compared with $3.712 billion, whilst adjusted earnings per share rose by 15.2 per cent to $2.2, compared with the same period last year.
Revenue rose to $11.192 billion from $10.14 billion. Organic growth stood at 7.6 per cent.
Analysts surveyed by FactSet had, on average, forecast the company’s revenue at $10.6 billion and adjusted earnings per share at $2.03.
Philip Morris’s shipments rose by 2.5 per cent last quarter, with smoke-free products up by 7.5 per cent. Smoke-free products accounted for 42 per cent of the company’s total revenue, compared with 41.5 per cent a year earlier.
This is the third time Philip Morris has downgraded its forecast since the start of the year. The company now expects to report adjusted earnings per share of between $8.26 and $8.41 for the full year 2026, compared with the previously forecast range of $8.31 to $8.46. Last year, this figure stood at $7.54.
However, the company has confirmed its forecast for organic revenue growth of 5–7 per cent this year.
Philip Morris’s share price fell by 1% during Wednesday’s trading session. The group’s market capitalisation has risen by almost 15 per cent over the past three months (to $293 billion), whilst the S&P 500 index has risen by more than 6 per cent.
The company was spun off from Altria in 2008 and is one of the world’s largest tobacco manufacturers. Its portfolio includes the Marlboro, L&M, Chesterfield, Parliament, Bond Street and other brands.