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 September 30, 2024).
Source: PMI Q 3 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 9 2 markets
Source: PMI Q 3 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 2 2.1 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.
How do we achieve a smoke-free future?
Jacek Olczak, CEO of Philip Morris International, speaks to camera:
Why are we denying people access to the information about these products?
Music starts
Words are seen on screen: Governments can help end cigarettes by adopting a balanced approach to the regulation of smoke-free products.
Lars Dahlgren, President, Smoke-Free Oral Products & CEO, Swedish Match, speaks to camera:
Authorities and politicians and regulators they have the opportunity to influence the consumer choice.
Stacey Kennedy, President, Americas Region and CEO of PMI’s U.S. business, speaks to camera:
If we just expect the 1 billion smokers on the planet to just stop, history over the past decades has told us that's simply not going to happen.
Jacek Olczak speaks to camera:
If we continue with that policy the only thing which we'll achieve is that they will extend the life of cigarettes in the market for decades - not for years - for decades.
Dr Moira Gilchrist, Chief Communications Officer, speaks to camera:
People think, ‘Well all the policies we put in place that have got us here, they will be fine for the future.’
But actually there's a better way.
Stefano Volpetti, President, Smoke-Free Inhaled Products and Chief Consumer Officer, speaks to camera:
Give consumers access to smoke-free alternatives and the right information about them.
Dr Moira Gilchrist, speaks to camera:
We have a very extensive board idea of science that shows unequivocally that these products are better than smoking.
Lars Dahlgren, speaks to camera:
Make the products available to consumers in a responsible way, then consumers will start making the journey and discover the benefits.
Stefano Volpetti, speaks to camera:
Provide better alternatives to all smokers, provide a range of technologies, user experiences, taste and price points that can cater for all smokers around the world.
Dr Moira Gilchrist, speaks to camera:
It's not going to be one product that suits the needs of every single person who smokes.
Bin Li, Chief Product Officer, PMI, speaks to camera:
When we ask people to quit smoking and change to smoke-free products, their taste, their preferences will be different, will be diverse.
Having a few product categories, having a few choices for our consumers, it will make them easiest to switch
Jacek Olczak, speaks to camera:
I’m very open to having a very mature conversation how we can orchestrate the system? How we can orchestrate the policy with different interventions, alternatives products... what else we can do about the smokable products, etc, which ultimately will drive to the full elimination of cigarettes.
Philip Morris International’s logo is seen on screen.
Delivering a better, smoke-free future.
Why are we denying people access to the information about these products?
Music starts
Words are seen on screen: Governments can help end cigarettes by adopting a balanced approach to the regulation of smoke-free products.
Lars Dahlgren, President, Smoke-Free Oral Products & CEO, Swedish Match, speaks to camera:
Authorities and politicians and regulators they have the opportunity to influence the consumer choice.
Stacey Kennedy, President, Americas Region and CEO of PMI’s U.S. business, speaks to camera:
If we just expect the 1 billion smokers on the planet to just stop, history over the past decades has told us that's simply not going to happen.
Jacek Olczak speaks to camera:
If we continue with that policy the only thing which we'll achieve is that they will extend the life of cigarettes in the market for decades - not for years - for decades.
Dr Moira Gilchrist, Chief Communications Officer, speaks to camera:
People think, ‘Well all the policies we put in place that have got us here, they will be fine for the future.’
But actually there's a better way.
Stefano Volpetti, President, Smoke-Free Inhaled Products and Chief Consumer Officer, speaks to camera:
Give consumers access to smoke-free alternatives and the right information about them.
Dr Moira Gilchrist, speaks to camera:
We have a very extensive board idea of science that shows unequivocally that these products are better than smoking.
Lars Dahlgren, speaks to camera:
Make the products available to consumers in a responsible way, then consumers will start making the journey and discover the benefits.
Stefano Volpetti, speaks to camera:
Provide better alternatives to all smokers, provide a range of technologies, user experiences, taste and price points that can cater for all smokers around the world.
Dr Moira Gilchrist, speaks to camera:
It's not going to be one product that suits the needs of every single person who smokes.
Bin Li, Chief Product Officer, PMI, speaks to camera:
When we ask people to quit smoking and change to smoke-free products, their taste, their preferences will be different, will be diverse.
Having a few product categories, having a few choices for our consumers, it will make them easiest to switch
Jacek Olczak, speaks to camera:
I’m very open to having a very mature conversation how we can orchestrate the system? How we can orchestrate the policy with different interventions, alternatives products... what else we can do about the smokable products, etc, which ultimately will drive to the full elimination of cigarettes.
Philip Morris International’s logo is seen on screen.
Delivering a better, smoke-free future.
Celebrating 10 years Of smoke-free progress
Our “PMI: A Story of Innovation” video series takes a fascinating deep dive into the early days of our transformation, the successes we’ve achieved, and the problems we’ve overcome since launching our leading heated tobacco product a decade ago.
PMI: A story of innovation
André Calantzopoulos, Chairman of the Board, Philip Morris International (PMI), sitting in an office, speaking to camera:
It was a very interesting journey, a very exciting journey with frustrations
from time to time, with setbacks. But I think we did the right thing.
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 - #05: Never Stop
Moira Gilchrist, Chief Communications Officer, PMI, sat in an office, speaking to camera:
Being there from the very, very beginning,
since it was just an idea that was sketched out on a flip chart to where we are now.
And that's, a sense of enormous pride at what we've done.
Shea Lih Goh, President, PMI Japan, speaks to camera:
Every function within the company has undergone some sort of transformation.
Lisa Hook, Member of the Board of Directors, PMI, speaks to camera:
It is extraordinary to get to be on this ride.
Video cuts to the PMI office building in Lausanne, Switzerland
André Calantzopoulos speaks:
I have never regretted for a second that we went into this product.
What I regret is we didn't have the knowledge and the understanding,
I can blame myself for that, to avoid certain of the difficulties and the problems we had in the initial years.
Jacek Olczak, CEO of PMI, sat in an office speaking to camera:
Knowledge of anything today and you go back in time, you could do things differently.
But the knowledge today is the result of
experiences you build over the last period.
Graphic shows human brain which changes to stacked cubes with text: Knowledge is the result of experiences you build.
Lisa Hook speaks:
There has never been a moment where the board or the management team
has hesitated to keep pushing forward.
Urs Bringold, VP Content & Owned Media, PMI, speaks:
There was once sort of a visual just to illustrate what one day we would have.
The illustration was: you saw a tobacconist shop and you had a side
that was like ‘cigarettes’ and on the other hand, you had ‘IQOS’ and all that.
And I swear it, a lot of people internally before it launched were like,
'It will never happen' and all that. And now it is, you know.
Graphic shows tobacconist shop and text to the left 'Cigarettes' and to the right 'Smoke-free products'.
Stefano Volpetti, President Smoke-free Inhalable Products & Chief Commercial Officer, PMI, speaks:
The only gift here would be the gift of all the learnings that we had in the last ten years,
have it as of day one. Because that would have accelerated this journey.
André Calantzopoulos speaks:
As executive of a company, you always say, 'If I knew when I started what I know when I finished,
that would be a very different company.'
Video cuts to the PMI office building in Lausanne.
Moira Gilchrist speaks:
So, where do we go from here?
I think now it's about continuing to build on the science.
It's about continuing to listen adults who smoke.
Serge Maeder, Global Head of RRP System Innovation, PMI, sat in open-plan office, speaking to camera:
We have just opened a small door, but I think we have a lot of options to make this product better.
But yes, you're talking to the wrong guy,
you’re to talking to the guy whose job is to improve the product going forward.
Mimi Kurniawan, Chief Diversity Officer, PMI, speaks:
What is the next product, what next innovation? What else?
Graphic shows early designs and the evolution of PMI's heated tobacco products from 1990 to 2023.
Text reads: What is the next product/innovation?
Karlygash Bismeldinova, AGC, Commercial Development Law, PMI, speaks to camera:
Never stop. And this is what I really like about PMI. We're always in the process of progress.
Emmanuel Babeau, CFO of PMI, speaking to camera:
Ten years ago, the level of skepticism, cynicism sometimes, on our ambition to unsmoke the world
and become a smoke-free company was very high.
Ten years after, I believe that nobody today can seriously challenge how genuine we are in delivering this ambition.
Graphic shows a cigarette broken in half and text: 10 years ago/after cynicism of our ambition
Graphic changes to a parcel box and text reads: Nobody today can challenge how genuine we are.
Serge Maeder speaks:
We have a chance, in the next 10 years to go full smoke-free products in PMI.
Stefano Volpetti speaks:
If you take Tokyo, more than 50% of the volume is in smoke-free products.
The direction is set.
Shea Lih Goh speaks:
I think today, as we said, we have many things to be proud of in Japan.
But we are not resting on our laurels. Obviously, we want to do more.
So, I'm very, very sure in the next 10 years, there will be a lot of significant achievements.
Jean-Claude Schneider, Global Head, New Business Opportunities, PMI, sat in open plan office, speaks to the camera:
Innovation is coming. I don't know what we're going to have maybe in three, four, five years.
But I know something is going to be available, that we're going to have a constant evolution.
Moira Gilchrist speaks:
We've made incredible progress, but there's a world still of a billion smokers.
So, we're kind of one smoker at a time.
Stefano Volpetti speaks:
We are sitting on something that can change the trajectory of public health.
Graphic appears showing a speedometer and text reads: Get there faster, help from stakeholders, health regulators
Stefano Volpetti voice over graphic:
We're going to get there faster if society, antis, stakeholders, health regulators help us to go in that direction,
but not because they need to help PMI,
but because we have a responsibility to consumers out there to provide them with better alternatives.
Video cuts to the PMI office building in Lausanne
Bin Li, Chief Product Officer, speaks:
Ten, 15 years ago, we said that, 'We may be able to do it, to replace cigarettes.
To give smokers a better alternative.'
Graphic appears showing a cigarette and an IQOS device.
Text reads: We may be able to replace cigarettes. Better alternative
Scott Coutts, Senior Vice President, Operations:
When we say we want to do something, we can change the industry as we're doing today.
Lisa Hook speaks:
I think it’s the most extraordinary achievement I've ever seen any corporation accomplish.
Mimi Kurniawan speaks:
This is showing that we are achieving the bold vision and the bold milestone that we set for ourselves.
Shea Lih Goh speaks:
I'm just proud to be part of this journey and this beautiful history.
Jacek Olczak speaks:
I have no regrets. There were a lot of hard days. But I have no regrets.
André Calantzopoulos speaks:
All these things have taken lot of time. But are important milestones in your filmography.
It's many happy endings, but still it's many episodes to come.
Jacek Olczak speaks:
This is a great movie. You don't want this movie to finish, I want to see more of this, more of this.
Video cuts to Moira Gilchrist sitting in a chair, filmed by a camera, writing on a notepad.
André Calantzopoulos sitting in a chair, being filmed by a camera crew member, asks:
Female voice behind camera:
Everyone happy? Yeah. Go.
André Calantzopoulos sitting in a chair, being filmed by camera crew members, asks:
What was your question?
Female voice behind camera:
Your proudest moment?
Bin Li sitting in a chair, being filmed by camera crew members, speaks:
Two words come to my mind.
Video shows Jean-Claude Schneider's notepad
Female voice behind camera speaks:
Lowest moment?
Jacek Olczak speaks:
Oh, lowest?
Female voice behind camera speaks:
Yeah.
Jacek Olczak speaks:
You know me very well, I am a born optimist, okay.
Mimi Kurniawan speaks:
Sorry. I changed.
Video shows Karlygash Bismeldinova's notepad.
Karlygash Bismeldinova speaks:
Future is always difficult.
André Calantzopoulos speaks:
What was the toughest moment?
Video shows Lisa Hook's notepad.
Lisa Hook speaks:
Can you give me some ideas?
Jean-Claude Schneider speaks:
That was simple.
Video shows Scott Coutts's notepad.
Scott Coutts speaks:
Our hope for the future.
Shea Lih Goh speaks:
Full name?
Video shows Stefano Volpetti's notepad. Male voice behind camera speaks:
That's wonderful handwriting.
Stefano Volpetti speaks:
Wonderful or terrible?
Urs Bringold speaks:
Oh, no. I have to take a new...
Bin Li speaks:
Do I sign?
Jacek Olczak speaks:
You ready?
Video shows graphics of everyone's notes from their notepads alongside a short video of them writing in their notepads in the following order:
Jacek Olczak, Mimi Kurniawan, Moira Gilchrist, André Calantzopoulos, Jean-Claude Schneider, Shea Lih Goh, Bin Li, Serge Maeder.
Graphic appears: PMI A story of innovation
Jacek Olczak speaks:
I think we did the right thing.
Philip Morris International logo appears with text underneath reading: The End!
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.
