Philip Morris International: Smoke-free Products Take Over 40% of the Company’s Revenues in Q4 2023

Philip Morris International, the world’s leading tobacco company, listed on the New York Stock Exchange under the symbol (NYSE: PM), announced its quarterly net revenues for the fourth quarter of 2023, where net revenues from heated tobacco products “IQOS” exceeded Marlboro cigarettes, making it the number one nicotine product in the world on this measure.

The company’s business performance results for the fourth quarter of 2023 revealed an increase in the number of heated tobacco products users “IQOS” around the world, reaching nearly 28.6 million users, 73% of which amounting to 20.8 million adult users, have already switched to heated tobacco products “IQOS”, and completely quitted traditional smoking. The company has achieved sales growth for the third year in a row, driven by a 15% increase in sales of “IQOS” products.

Ali N. Karaman, Managing Director of Philip Morris Egypt and Levant was proud with the strong performance of the company during the fourth quarter of 2023, especially considering the high demand for all of the company’s products, saying that more than 40% of the company’s total revenues during the fourth quarter of 2023, comes from smoke-free products. He added that as of December 31, 2023, Philip Morris International’s smoke-free products were available in 84 markets, including 25 markets with smoke-free products accounting for more than 50% of the company’s total top-line in 2023.

Karaman continued, ” IQOS ILUMA products are now available in 51 markets as we expect the number of adult users of ILUMA to reach more than 17 million. IQOS ILUMA have a new and attractive design, with a strong commercial infrastructure for the company, which helped IQOS to outperform in the heated tobacco products category, capturing a share of more than 75%. In addition, in the U.S., ZYN oral nicotine products became the fastest-growing brand in the smoke-free products category.”

Karaman stressed that the company is seeking to accelerate the transition pace towards smoke-free products, marking the considerable progress in adopting tobacco harm reduction policies. He also added that the company has achieved a satisfactory overall performance in the field of sustainability, pointing out its commitment towards tobacco harm reduction by providing better alternatives to adult smokers who may continue to smoke, while calling for the need to strengthen regulations and legislation that support this approach based on proven scientific evidence.

Philip Morris strives to achieve a “smoke-free world” by offering a range of innovative tobacco products that rely on tobacco heating technology, to achieve the highest rates in reducing the risks of traditional smoking. Scientific research confirms that the tobacco burning process that occurs in a cigarette occurs at a temperature starting from 400 degrees Celsius producing smoke that contains more than 6,000 harmful chemical compounds, of which about 100 have been classified by public health authorities as harmful or potentially harmful, where the main reason behind smoking-related diseases is the high levels of harmful chemicals found in cigarette smoke.

In heated tobacco and nicotine products, the combustion and smoke are eliminated by heating the tobacco instead of burning it at a temperature not exceeding 350 degrees Celsius, thus no smoke is produced but rather “water vapor or aerosol”, which is what tobacco heating technology does in smoke-free alternative products. These products have shown a reduction in the average levels of harmful chemicals by up to 95% compared to cigarette smoke, however, this does not necessarily mean reducing the harms caused by smoking by an equal percentage.

Scientific research also confirms that although nicotine is an addictive substance by nature and is not risk-free, it is not the main cause of smoking-related diseases. The high levels of harmful chemicals in cigarette smoke are responsible for these diseases. Therefore, smoke-free products are a better option for smokers who wish to continue smoking, although they are not completely risk-free.