(Reuters) -Philip Morris International hiked its annual profit forecast on Wednesday, delivering early on investor hopes for outlook raises throughout 2025, thanks to the performance of newer products, including the nicotine pouch brand ZYN.
Investors have cheered Marlboro maker’s performance in recent quarters, as it has beaten forecasts and raised its outlook amid growth in newer products like ZYN and rising cigarette prices.
Shares of the company, which are up about 36% so far this year, rose nearly 4% in premarket trading.
ZYN’s surging popularity quickly rebounded after supply issues constrained sales last year, driven particularly by U.S. consumers seeking smoking alternatives.
Its quarterly ZYN shipment volume in the U.S. grew 53%, compared to a year earlier. It was up 42% in the fourth quarter.
Its flagship alternative product heated tobacco device IQOS, which also saw continued strength due to growth in regions like Europe and Japan, had its first U.S. launch in Texas earlier this year for $60 each.
The company has been investing heavily in its portfolio of smoking alternatives with the aim of generating half of its sales from smoke-free products by the end of 2025.
“We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment, and now forecast double-digit adjusted diluted EPS growth in dollar terms for the full year,” said CEO Jacek Olczak.
Philip Morris expects adjusted annual profit in the range of $7.36 to $7.49 per share, compared with its prior forecast between $7.04 and $7.17.
Its first-quarter revenue rose 5.8% to $9.30 from a year ago. Analysts, on average, estimated a 3.8% rise to $9.13 billion, as per data compiled by LSEG.
The company reported adjusted profit of $1.69 per share, compared to analysts’ estimates of $1.61 per share.
(Reporting by Anuja Bharat Mistry in Bengaluru and Emma Rumney in London; Editing by Vijay Kishore)
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