Philip Morris International Inc (NYSE:PM) called its third quarter performance “very strong” as quarterly revenue topped $9 billion for the first time.
The Marlboro and Benson & Hedges cigarette maker reported operating income of $3.37 billion, up 19% from $2.97 billion the year prior.
Adjusted diluted EPS increased 9.1% to $1.67 from $1.53, ahead of the FactSet consensus estimate of $1.62 a share, but although revenue advanced by 9% to $9.14 billion, it fell short of the $9.21 billion predicted.
The firm said revenue growth reflected a favourable pricing variance, driven by higher combustible tobacco pricing, as well as favourable volume and mix.
It shipped 193.61 billion units of cigarettes and heated tobacco units in the third quarter, up 2.2% against the year prior and primarily driven by an 18% jump in HTU shipments across all its regions.
This performance “reflects continued excellent business momentum, driven by strong IQOS performance, resilient combustible trends, and the exceptional growth of ZYN - which has surpassed our expectations yet again," said chief executive Jacek Olczak.
As a result, the company raised its full-year growth outlook for adjusted diluted EPS to a range of 10.0% to 10.5%, excluding currency.
It now expects adjusted diluted EPS, excluding currency, to rise to between $6.58 and $6.61 from $5.98 in 2022.
Shares eased 0.4% in pre-market trading.