Philip Morris International (PMI) has increased its full-year profit outlook following strong first-quarter earnings driven largely by continued growth in its Zyn nicotine pouch brand.
The tobacco company now projects adjusted earnings of $7.36 to $7.49 per share for 2025, up from its earlier forecast of $7.04 to $7.17. The revised outlook follows a strong quarterly performance, with total revenue reaching $9.3 billion—a 5.8% increase from the same period last year.
PMI also reported a 15% revenue surge for its noncombustible product category, which includes smoke-free alternatives such as Zyn.
Zyn has become a cornerstone of PMI’s efforts to transition toward what it calls a “smoke-free future.” The company aims for two-thirds of its revenue to come from noncombustible products by the end of the decade.
“We remain confident in our ability to deliver superior results, despite an uncertain and volatile global economic environment,” said PMI CEO Jacek Olczak in a statement accompanying the earnings report.
Zyn Drives Noncombustible Growth
PMI’s chief financial officer, Emmanuel Babeau, highlighted Zyn’s rapid rise in the U.S. market. In the first quarter of 2025, the company shipped 202 million cans—up 53% from the same period in 2024 and four times the volume shipped in early 2022.
Despite the surge in demand, PMI continues to face supply constraints. The company has limited marketing for Zyn to avoid overwhelming supply chains while it works to boost production capacity. Babeau indicated that the company expects supply issues to be resolved by the third quarter of this year.
To address shortages, PMI announced two major investments in Zyn production facilities over the past year: a $232 million expansion in Owensboro, Kentucky, and a $600 million facility under development in Colorado.
“As we remove the limitations and resolve out-of-stock situations, we expect an acceleration in consumer uptake,” Babeau said.
Zyn’s growth comes amid tightening regulatory scrutiny in the broader nicotine market, including on flavored vaping products. With Zyn holding FDA marketing authorization as of January, it has emerged as a legally marketable alternative in an industry challenged by regulatory uncertainty and unauthorized competition.
PMI’s smoke-free business also includes IQOS heated tobacco device and sticks.
The company also said that it had called off the sale of its $1 billion U.S. cigar business, citing the “current environment.” PMI said following a thorough review and after taking into account the current environment, it will not shed the cigar unit it acquired as part of its $16 billion purchase of rival Swedish Match.
PMI has previously said it wanted to dispose of its U.S. cigar assets as it continues to pin its future on a shift toward smoke-free alternatives to traditional tobacco products.
