A future without cigarettes is within reach—we are playing our part to get there as soon as possible.
Our progress
Led by science and innovation, PMI’s goal is to end the sale of cigarettes.
We are delivering smoke-free products that are a better choice for adults than continued smoking.
Our ambition is to become substantially smoke-free by 2030, with our smoke-free business generating over two-thirds of total net revenues.
Our progress toward a smoke-free future as of Q3 2024
-
![C24002_Spotlight_icons_150x150_PMI_process-;age_icon_150x150_1]()
38 percent
of PMI’s total net revenues came from our smoke-free business.
-
![C24002_Spotlight_icons_150x150_PMI_process-page_icon_150x150_6]()
36.5 million
estimated total adult users of PMI’s smoke-free products. ¹
-
![C24002_Spotlight_icons_150x150_PMI_process-;age_icon_150x150_4]()
92 markets
where our smoke-free products are available.
-
![C24002_Spotlight_icons_150x150_PMI_process-;age_icon_150x150_5]()
USD >12.5 billion
invested to develop, scientifically substantiate, and commercialize smoke-free products since 2008. ²
1 As of June 30, 2024. 2 As of December 31, 2023. Important Note: This information should be read in conjunction with the Philip Morris International Inc. earnings release dated October 22, 2024, as well as the accompanying glossary of key terms, definitions, explanatory notes, select financial information and reconciliations of non-GAAP financial measures, both of which are available on our Investor Relations pages. “PMI” refers to Philip Morris International Inc. and its subsidiaries.
Emmanuel Babeau shares his highlights from our Q3 Results
Our third quarter results are out.
Following an excellent first half,
we delivered another
outstanding performance in Q3.
All key elements of the business performed
at or above expectations,
with our smoke-free business
accelerating on an underlying basis.
Our heated tobacco unit volumes delivered
a step-up in adjusted
in-market sales growth in Q3,
as we saw strong momentum supported by
our commercial programs, including events
to celebrate the 10-year anniversary of
the launch of IQOS,
our leading heated tobacco product.
Nicotine pouch shipment volumes were at
the higher end of our expectations,
with a significant sequential step up to deliver
growth in the U.S.
of over 40% year on year.
We had a small but growing contribution
from our e-vapor business, as we saw
continued volume momentum
led by our closed pod offering.
And finally, our combustible business
delivered a very good quarter led by
strong pricing and resilient volumes.
Q3 net revenues grew close to 12% organically,
driven by best-in-class
volumes and pricing.
Additionally, we delivered substantial
margin expansion and earnings growth,
resulting in +18% adjusted earnings per share growth
in constant currency, and over 14% on a dollar basis.
Our overall Q3 performance epitomized
the strengths of our strategy, with underlying
momentum across categories bolstered
by our proactive measures on
pricing and cost efficiencies.
It’s time to make smoking history
Voiceover: Jacek Olczak, CEO, Philip Morris International
This company wants to change the world.
If we can get there this is going to be really phenomenal.
Fast-paced music starts
Words on screen read: That’s why at Philip Morris International, we’ve committed to deliver a smoke-free future.
Voiceover: Stefano Volpetti, President, Smoke-Free Inhaled Products & Chief Consumer Officer, PMI.
This company has had the courage, the vision and leadership to establish a new direction.
Voiceover: Bin Li, Chief Product Officer, PMI
It's very difficult for a company to sign up for a big transformation like this.
Words on screen read: Our ambition? To move away from cigarettes.
Voiceover: Stacey Kennedy, President Americas Region and CEO of PMI’s U.S. business:
We are building our company's future around better alternatives to smoking.
Voiceover: Michael Voegele, Chief Digital and Information Officer, PMI:
I think it's a unique challenge being part of a team that revolutionizes the industry.
Words on screen read: Since 2008, we’ve invested over 12.5 billion dollars in scientific substantiated smoke-free products.
Moira Gilchrist, Chief Communications Officer, speaks:
So, we've become a company that's centered on bringing better options to people.
Voiceover: Jacek Olczak, CEO, Philip Morris International
In just 10 years, we could be saying to people: “Remember when people smoked?”
Words on screen read: By 2030, we aim to have more than two-thirds of our net revenue come from smoke-free business.
We were at 38 percent (as of June 30, 2024).
Source: PMI Q2 Results 2024
Voiceover: Moira Gilchrist, Chief Communications Officer: The facts are out there, and they’re clearly verified and verifiable.
Voiceover: Lars Dahlgren, President, Smoke-Free Oral Products and CEO, Swedish Match:
I've been impressed with the boldness of PMI articulating that the future is smoke free products.
Words on screen read: Currently our smoke-free products are available in 90 markets
Source: PMI Q2 Results 2024
Voiceover: Dr Badrul Chowdhury, Chief Life Sciences Officer, Smoke-Free Products:
You actually have a product where the hundred or so chemicals which are known to be harmful are reduced or eliminated. That's the scientific breakthrough.
Voiceover: Dr Moira Gilchrist, Chief Communications Officer, PMI:
This is transforming the entire industry.
Voiceover: Jacek Olczak, CEO, Philip Morris International:
The evidence is clear. Smoke-free alternatives can accelerate the end of smoking. The world has to move now to help smokers to move to the better alternative.
Words on screen read: 30.8 million adults globally are using our leading heated tobacco product, of which 22.1 million have switched completely and stopped smoking.
Approximate numbers as of June 30, 2024. Source: PMI Q2 Results 2024.
Voiceover: Jacek Olczak, CEO, Philip Morris International:
It's time to make smoking history.
Philip Morris International logo is seen on screen.
Episode 1 – “A Genius Idea”
Background music begins.
André Calantzopoulos, Chairman of the Board, Philip Morris International (PMI), sitting in an office, speaking to camera:
"The industry had said in the late nineties and admitted openly that cigarettes cause disease and premature deaths.
What do you do to resolve the problem?"
Music rises and graphics appear showing early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Text shows title of video: PMI - A Story of Innovation - #01: "A Genius Idea"
André Calantzopoulos continues:
"Eliminating the combustion, hence 'smoke-free', is the solution and the answer to the problem."
Serge Maeder, Global Head of RRP System Innovation, PMI, sat in open-plan office with mountains in the background, speaking to camera:
"At the beginning all the options are available. So you have a full blank sheet with no specification, just a desire to develop a good product …"
Jean-Claude Schneider, Global Head, New Business Opportunities, PMI, sat in open plan office, continues on the same subject:
"… that can, on one hand, address the issue of combustion, the issue of burning, but in the meantime, making sure that smokers can find pleasure and therefore have an alternative that is viable."
Moira Gilchrist, Chief Communications Officer, PMI, sat in an office, speaking to camera:
"We'd had a previous product before, that frankly didn't work very well, that was heated from the outside."
Serge Maeder:
"But these products were commercial failures."
André Calantzopoulos:
"And I think the consumer readiness also was not as high as later on."
Voiceover of Jean-Claude Schneider as he walks through PMI's Research and Development Center, The Cube, in Neuchätel.
You don't figure it out at the beginning. You start and day in, day out, you build your level of confidence.
But the first day you cannot figure out how many issues, how many challenges you're going to face and how are you going to do each and every step.
Serge Maeder:
"So we started from the point where we knew the technology was possible. So by heating tobacco, you can actually reduce toxicants
that are created by combustion …"
Graphic showing a thermometer and the words spoken by Jean-Claude Schneider.
Maeder continues:
"… but we didn't have any example of a successful product. So the challenge for us was to say, can we push and develop this technology to a point where it becomes acceptable to adult smokers?
Footage of Serge Maeder in the laboratory assessing heated tobacco products
Moira Gilchrist speaks:
"It took us a while to figure out that you need to have a very different approach. And they came with this genius idea that if we figure out a way to put the heater in the inside, then we could make it much more efficient.
Animated infographic showing the development of a heated tobacco product with the heater on the inside of the product.
Jean-Claude Schneider speaks:
But that was not the first question. The first thing: to hire people.
Different music starts and clips of people in open-plan offices discussing and laughing.
Jacek Olczak, CEO of PMI, sat in an office speaking to camera:
"So, in movies it is called magic, but in real life you need hundreds, thousands of people."
André Calantzopoulos speaks:
"As you know, it's not only one person or five or ten, it is the whole company
that achieved this. And I think everybody can be perfectly proud of what we have done."
Moira Gilchrist:
"When you're a scientist, it's not often you get to work on a subject that has the potential to change the lives of a billion people."
Bin Li, Chief Product Officer, PMI, sat in an open plan office, talking to camera:
"We want to do harm reduction. We want to deliver benefits to consumers. That process of explaining what we want to do, it’s not easy.”
Karlygash Bismeldinova, AGC, Commercial Development Law, PMI, speaks to camera:
"I was like, 'Wow, we are going to see a completely different product. We will learn a lot of things. We will be developing as an organisation.'"
Shea Lih Goh, President, PMI Japan, speaks to camera:
"It was unimaginable. And to be honest, I was one of the few skeptical people because we had failed a couple of times before."
Urs Bringold, VP Content & Owned Media, PMI, speaks:
"There were people that said: 'This is the end of Philip Morris.'"
Lisa Hook, Member of the Board of Directors, PMI, speaks to camera:
"We have to innovate to cannibalize our core business."
Mimi Kurniawan, Chief Diversity Officer, PMI, speaks:
"The fact that we came up to disrupt our industry …"
Graphic appears showing text: We came up to disrupt our industry.
Mimi Kurniawan continues:
"… unless we do it, no one is going to start it."
Lisa Hook speaks:
"I think it's the most extraordinary achievement I've ever seen any corporation accomplish."
Video cuts to scientists in a lab.
Moira Gilchrist speaks:
"So, give Philip Morris International a huge and frankly scary goal and everyone will point towards it and do everything they possibly can to achieve that goal."
Stefano Volpetti, President Smoke-free Inhalable Products & Chief Commercial Officer, PMI, speaks:
"We have that passion, that drive to go in the right direction of smoke-free. And, we are delivering on it and we will deliver on it."
Moira Gilchrist speaks:
"So, I never really had a doubt that we could do it. The question was: how long would it take?"
New music begins and video cuts to The Cube.
Jean-Claude Schneider speaks:
"So, since day one, André was very supportive, very helpful in the development."
André Calantzopoulos speaks:
"I think having a technical background has helped me understand a bit of the technological challenges but it was not me who developed the product. Let's be realistic."
Jean-Claude Schneider speaks:
"I always remember his message: Don't make any shortcuts."
Graphic appears showing text: We’re gonna have one chance to justify. It continues, showing early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Jean-Claude Schneider speaks:
"We're going to have one chance to justify this next-generation-type of product, so we have to make it right."
Scott Coutts, Senior Vice President, Operations:
"If we hadn't have done it, we probably would be viewed in a much more skeptical light."
Jacek Olczak speaks:
"I think we did the right thing. And I was so happy that, you know, in order to enjoy the great things in life, you need a bit of luck beyond your skills. And the luck is coming that you were in the right moment, in the right place. And you could enjoy this terrific journey."
André Calantzopoulos speaks:
"That's how it all started. And back in 2003, 2004, there was a lot of thinking behind this, but the decision was taken and that’s how the journey started.”
Graphic appears showing the text: In the next episode.
Andre speaks:
"We all believed in this product, so we never wavered."
Scott Coutts speaks:
"It all starts here."
Serge Maeder speaks:
"We really needed to invent something new."
Jean-Claude Schneider speaks:
"Can we separate the two?"
André Calantzopoulos speaks:
"It’s not a guinea pig, it is a privilege."
Moira Gilchrist speaks:
"The results were astounding. They were so different to cigarettes."
Philip Morris International logo appears with text underneath reading:
Episode 2 coming soon!
André Calantzopoulos, Chairman of the Board, Philip Morris International (PMI), sitting in an office, speaking to camera:
"The industry had said in the late nineties and admitted openly that cigarettes cause disease and premature deaths.
What do you do to resolve the problem?"
Music rises and graphics appear showing early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Text shows title of video: PMI - A Story of Innovation - #01: "A Genius Idea"
André Calantzopoulos continues:
"Eliminating the combustion, hence 'smoke-free', is the solution and the answer to the problem."
Serge Maeder, Global Head of RRP System Innovation, PMI, sat in open-plan office with mountains in the background, speaking to camera:
"At the beginning all the options are available. So you have a full blank sheet with no specification, just a desire to develop a good product …"
Jean-Claude Schneider, Global Head, New Business Opportunities, PMI, sat in open plan office, continues on the same subject:
"… that can, on one hand, address the issue of combustion, the issue of burning, but in the meantime, making sure that smokers can find pleasure and therefore have an alternative that is viable."
Moira Gilchrist, Chief Communications Officer, PMI, sat in an office, speaking to camera:
"We'd had a previous product before, that frankly didn't work very well, that was heated from the outside."
Serge Maeder:
"But these products were commercial failures."
André Calantzopoulos:
"And I think the consumer readiness also was not as high as later on."
Voiceover of Jean-Claude Schneider as he walks through PMI's Research and Development Center, The Cube, in Neuchätel.
You don't figure it out at the beginning. You start and day in, day out, you build your level of confidence.
But the first day you cannot figure out how many issues, how many challenges you're going to face and how are you going to do each and every step.
Serge Maeder:
"So we started from the point where we knew the technology was possible. So by heating tobacco, you can actually reduce toxicants
that are created by combustion …"
Graphic showing a thermometer and the words spoken by Jean-Claude Schneider.
Maeder continues:
"… but we didn't have any example of a successful product. So the challenge for us was to say, can we push and develop this technology to a point where it becomes acceptable to adult smokers?
Footage of Serge Maeder in the laboratory assessing heated tobacco products
Moira Gilchrist speaks:
"It took us a while to figure out that you need to have a very different approach. And they came with this genius idea that if we figure out a way to put the heater in the inside, then we could make it much more efficient.
Animated infographic showing the development of a heated tobacco product with the heater on the inside of the product.
Jean-Claude Schneider speaks:
But that was not the first question. The first thing: to hire people.
Different music starts and clips of people in open-plan offices discussing and laughing.
Jacek Olczak, CEO of PMI, sat in an office speaking to camera:
"So, in movies it is called magic, but in real life you need hundreds, thousands of people."
André Calantzopoulos speaks:
"As you know, it's not only one person or five or ten, it is the whole company
that achieved this. And I think everybody can be perfectly proud of what we have done."
Moira Gilchrist:
"When you're a scientist, it's not often you get to work on a subject that has the potential to change the lives of a billion people."
Bin Li, Chief Product Officer, PMI, sat in an open plan office, talking to camera:
"We want to do harm reduction. We want to deliver benefits to consumers. That process of explaining what we want to do, it’s not easy.”
Karlygash Bismeldinova, AGC, Commercial Development Law, PMI, speaks to camera:
"I was like, 'Wow, we are going to see a completely different product. We will learn a lot of things. We will be developing as an organisation.'"
Shea Lih Goh, President, PMI Japan, speaks to camera:
"It was unimaginable. And to be honest, I was one of the few skeptical people because we had failed a couple of times before."
Urs Bringold, VP Content & Owned Media, PMI, speaks:
"There were people that said: 'This is the end of Philip Morris.'"
Lisa Hook, Member of the Board of Directors, PMI, speaks to camera:
"We have to innovate to cannibalize our core business."
Mimi Kurniawan, Chief Diversity Officer, PMI, speaks:
"The fact that we came up to disrupt our industry …"
Graphic appears showing text: We came up to disrupt our industry.
Mimi Kurniawan continues:
"… unless we do it, no one is going to start it."
Lisa Hook speaks:
"I think it's the most extraordinary achievement I've ever seen any corporation accomplish."
Video cuts to scientists in a lab.
Moira Gilchrist speaks:
"So, give Philip Morris International a huge and frankly scary goal and everyone will point towards it and do everything they possibly can to achieve that goal."
Stefano Volpetti, President Smoke-free Inhalable Products & Chief Commercial Officer, PMI, speaks:
"We have that passion, that drive to go in the right direction of smoke-free. And, we are delivering on it and we will deliver on it."
Moira Gilchrist speaks:
"So, I never really had a doubt that we could do it. The question was: how long would it take?"
New music begins and video cuts to The Cube.
Jean-Claude Schneider speaks:
"So, since day one, André was very supportive, very helpful in the development."
André Calantzopoulos speaks:
"I think having a technical background has helped me understand a bit of the technological challenges but it was not me who developed the product. Let's be realistic."
Jean-Claude Schneider speaks:
"I always remember his message: Don't make any shortcuts."
Graphic appears showing text: We’re gonna have one chance to justify. It continues, showing early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Jean-Claude Schneider speaks:
"We're going to have one chance to justify this next-generation-type of product, so we have to make it right."
Scott Coutts, Senior Vice President, Operations:
"If we hadn't have done it, we probably would be viewed in a much more skeptical light."
Jacek Olczak speaks:
"I think we did the right thing. And I was so happy that, you know, in order to enjoy the great things in life, you need a bit of luck beyond your skills. And the luck is coming that you were in the right moment, in the right place. And you could enjoy this terrific journey."
André Calantzopoulos speaks:
"That's how it all started. And back in 2003, 2004, there was a lot of thinking behind this, but the decision was taken and that’s how the journey started.”
Graphic appears showing the text: In the next episode.
Andre speaks:
"We all believed in this product, so we never wavered."
Scott Coutts speaks:
"It all starts here."
Serge Maeder speaks:
"We really needed to invent something new."
Jean-Claude Schneider speaks:
"Can we separate the two?"
André Calantzopoulos speaks:
"It’s not a guinea pig, it is a privilege."
Moira Gilchrist speaks:
"The results were astounding. They were so different to cigarettes."
Philip Morris International logo appears with text underneath reading:
Episode 2 coming soon!
We're accelerating toward our smoke-free ambitions
* Smoke-free product net revenues as of Q3 2014.
** Smoke-free business net revenues as of Q3 2024.
