Philip Morris International (PM) 2025 dbAccess Global Consumer Conference summary

Business performance and growth outlook

• On track for another year of strong growth in revenue, operating income, and adjusted EPS before forex, driven by robust smoke-free portfolio performance and premium alternatives like IQOS, ZYN, and VEEV across multiple markets.

• IQOS saw nearly 10% adjusted in-market sales growth in Q1, with Japan and Europe contributing significantly despite regulatory headwinds like the flavor ban.

• ZYN experienced over 50% growth in the U.S. in Q1, with expectations for continued strong performance and restocking in 2025.

• VEEV achieved number one position in five EU markets, supporting a multi-category strategy.

• Smoke-free products deliver higher revenue per unit and gross margin, with Q1 2025 showing a 670 basis point organic margin improvement.

Multi-category strategy and market dynamics

• Multi-category approach leverages IQOS, ZYN, and VEEV, with 16 markets offering all three brands, enhancing consumer loyalty and brand strength.

• Global travel retail and countries like Poland, Greece, and Romania exemplify successful multi-category execution.

• Each category—heat-not-burn, vaping, and nicotine pouches—serves distinct consumer needs, with all expected to play significant roles in the future.

• ZYN is positioned as a lifestyle product, with growing adoption even in markets without a tradition of oral nicotine use.

• IQOS's success in Japan attributed to innovation, lifestyle branding, and broadening appeal across age groups.

U.S. market and regulatory environment

• IQOS pilots in Austin and Fort Lauderdale confirm strong resonance with U.S. consumers, especially in urban areas open to innovation.

• ZYN's U.S. growth supported by increased capacity, with normalization of supply expected by Q3 2025 and ongoing restocking.

• The nicotine pouch category is highly competitive, with ZYN maintaining premium positioning and full PMTA approval from the FDA.

• Regulatory progress in the U.S. is positive, with the new CTP head at the FDA expected to continue supporting tobacco harm reduction.