Investing.com -- Philip Morris (NYSE:PM) has reported higher-than-anticipated second quarter adjusted earnings per share, thanks in part to solid demand for the tobacco giant's smokeless IQOS devices and Zyn nicotine pouches.
Adjusted profit per share for the three months ended on June 30 rose by 16.9% to $1.60, topping Refinitiv estimates of $1.47 cited by Reuters.
Total IQOS users as of the final day of the quarter were approximately 27.2 million, representing an increase of 1.4M versus March 2023, Philip Morris said. Zyn shipment volume in the U.S. also grew by 53.1% year-on-year to 89.9M cans.
Meanwhile, net revenues increased by 10.5% on an organic basis to $8.97 billion, driven by a jump in the price of its combustible tobacco offerings after supply chain disruptions pushed up freight and raw material costs last year.
Philip Morris lifted the lower end of its annual profit outlook, saying it now estimates that earnings per share (EPS) will be between $6.13 to $6.22. The company previously guided for EPS of $6.10 to $6.22.
"Our strong fundamentals give us further confidence as we enter the second half of the year, particularly as certain inflationary and operational pressures ease," said chief executive Jacek Olczak in a statement Thursday.