Philip Morris says its heated-tobacco devices are now selling more than Marlboro products

Philip Morris International
PM,
-2.68%
said its iQOS heated tobacco products surpassed its Marlboro cigarettes in terms of net revenue, as cigarette shipment volume dropped by 1.9%.

Philip Morris International said fourth-quarter net income fell to $2.19 billion, or $1.41 a share in the fourth quarter, from $2.38 billion, or $1.54 a share, in the year-ago quarter.

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Adjusted profit of $1.36 a share fell short of the FactSet consensus estimate of $1.45 a share.

Revenue increased by 11% to $9.05 billion, in line with the analysts’ estimate.

Looking ahead, Philip Morris expects 2024 earnings of $5.90 a share to $6.02 a share, below the analyst estimate of $6.60 a share.

Total iQOS users stood at 28.6 million at year-end, up by 3.7 million from the end of 2022. Out of the total number, 20.8 million had switched to heated tobacco products.

Total cigarette volume fell 0.5%, including a 0.8% drop in Marlboro units to 60.2 million units.

Philip Morris International said its market share for heated-tobacco units (HTUs) rose by 1.2% to 9.1%.

The company said smoke-free products reached nearly 40% of its total net revenues and more than 40% of gross profit in the fourth quarter.

Philip Morris International also marked the one-year anniversary of its combination with Swedish Match, which had “stellar U.S. performance of ZYN, a brand of nicotine pouches.

The company’s iQOS products heat up tobacco into a vapor, which is then inhaled by the user. E-cigarettes heat up a liquid that contains nicotine into a vapor. Both are described as smokeless tobacco products.

Prior to Thursday’s trades, Philip Morris International’s stock was down by 2.8% so far in 2024, while the S&P 500 is up by 4.7%.