Philip Morris: Is This Tobacco Giant’s Pricing Power Strong Enough to Defy Declining Demand? 

Philip Morris International (PMI) delivered a notable performance in 2024, showcasing both strengths and challenges that investors should weigh. The company’s expansion in the smoke-free product sector, alongside resilient performance in combustible products, is a significant aspect of its strategy, supporting growth in both revenue and profitability. Positives from the 2024 results show strong momentum in smoke-free products, particularly IQOS, with substantial progress in markets like Japan and parts of Europe despite regulatory challenges such as the EU characterizing flavor ban. The smoke-free segment contributed significantly to PMI’s revenue, reaching close to $15 billion, accounting for 40% of the total net revenues in the fourth quarter. PMI reported adjusted diluted earnings per share growth in both currency-neutral and dollar terms, despite currency headwinds, highlighting effective strategies in managing external economic challenges.