Philip Morris International (PMI) has announced total global net revenues of IQOS, its leading tobacco heating device, surpassed Marlboro at the end of 2023 to become PMI’s number one international nicotine brand on this measure.
The news, issued during the 2023 Fourth-Quarter and Full-Year Financial Results in early February, marks a key milestone on PMI’s journey to becoming a smoke-free company. PMI’s smoke-free products, which include IQOS, as well as e-vapor products and oral smokeless products, like ZYN, reached nearly 40% of total PMI net revenues in the fourth quarter.
Commenting on the transformation milestone, Jacek Olczak, PMI’s Chief Executive Officer, said, “Our business delivered a strong finish to 2023 and we achieved several remarkable milestones on our path to becoming a smoke-free company.
“We are pleased that smoke-free products reached nearly 40% of our total net revenues and over 40% of our gross profit in the fourth quarter. This was led by the continued growth of IQOS, which has now surpassed Marlboro in terms of net revenues, confirming its position as the leading premium nicotine brand less than 10 years from launch,” Olczak added.
This landmark moment for the global business comes after the recent UK launch of IQOS ILUMA – PMI’s most advanced tobacco heating device – and TEREA tobacco sticks, both of which are performing strongly within grocery and convenience.
Christian Woolfenden, managing director of Philip Morris Limited (PML), in the UK and Ireland, said: “IQOS surpassing Marlboro in total net revenues marks a significant global milestone and another step in PMI’s journey to achieving a smoke-free future.
“IQOS has spearheaded growth in the heated tobacco category in the UK, as more adult smokers demand a less harmful tobacco alternative that is affordable, clean, and effortless. The introduction of IQOS ILUMA to the market has further bolstered this momentum, with retailers now embracing the growing demand for IQOS, poised to drive further growth and performance in 2024,” Woolfenden added.
