Philip Morris International (PM) Barclays 19th Annual Global Consumer Conference summary

Strategic and Financial Outlook

• 2026 adjusted diluted EPS forecast raised to $8.35–$8.50, reflecting 10.7%–12.7% growth, including a favorable currency impact of $0.24 per share, with Q3 seeing a $0.01 benefit at current rates.

• Adjusted diluted EPS excluding currency projected at $8.11–$8.26, representing 7.5%–9.5% growth over 2025.

• Sustained low double-digit EPS growth is targeted mid-term, supported by total volume growth and pricing power in both combustibles and smoke-free products.

• Dividend remains the top capital allocation priority, with share buybacks under consideration as leverage targets are met.

• Currency fluctuations and regulatory changes are actively managed through pricing and strategic flexibility.

Market and Product Developments

• Japan's market is adapting to significant excise-driven price increases, with heated tobacco now exceeding 50% of nicotine market volume.

• IQOS maintains a premium position despite competitive pricing tactics and is expected to resume growth as tax equalization with cigarettes improves margins.

• U.S. market focus includes expanding ZYN with new moist and higher-nicotine SKUs, aiming for portfolio symmetry and value through larger can sizes, with Q4 transition of 3mg and 6mg dry variants to 20 pouches per can.

• Regulatory clarity from the FDA on ZYN supports future planning, while IQOS ILUMA awaits PMTA authorization for U.S. launch.

• Strong multicategory growth internationally, including VEEV and ZYN brands.

Category and Geographic Expansion

• Smoke-free products drive growth, with multi-category strategies and new launches in markets like Taiwan and Argentina.

• U.S. is seen as the most attractive growth opportunity due to its size and profitability in the nicotine space.

• Combustible volumes remain robust in markets lacking smoke-free alternatives, with focus on opening new geographies.

• Ongoing investment in marketing and brand-building, especially for ZYN, is expected to support further share gains.

• Robust performance from combustibles continues, especially in markets with SFP bans or limited presence.