July 22 (Reuters) – Philip Morris International cut its annual profit forecast for the third time this year on Wednesday, hurt by intensifying competition among tobacco products and negative currency swings.
Shares of the company were down 1% in premarket trading.
The company also said it seeks to invest in its Zyn nicotine pouches following recent regulatory approval.
While U.S. regulators have recently taken a more favorable stance toward nicotine pouches, including allowing certain Zyn products to be marketed as less harmful than cigarettes, increased competition and pricing pressure have raised concerns about PMI’s ability to maintain its market-leading position.
The company expects full-year adjusted earnings per share of $8.26 to $8.41, compared with its previous forecast of $8.31 to $8.46.
Philip Morris has been investing heavily to diversify beyond cigarettes, but faces mounting competition in the rapidly growing nicotine pouch category from products such as British American Tobacco’s Velo.
The company launched Zyn Ultra, a higher-strength moist pouch variant, in June and priced it below PMI’s flagship Zyn products on a per-pouch basis, as the company looks to defend market share.
Its second-quarter revenue rose 10.4% to $11.19 billion, exceeding analysts’ estimate of $10.63 billion, according to data compiled by LSEG.
(Reporting by Neil J Kanatt in Bengaluru and Emma Rumney in London; Editing by Devika Syamnath)
