US Zyn boom pushed Philip Morris stock to a record. Wall Street still sees ‘impressive growth’ ahead.
From Yahoo Finance: 2025-06-16 12:57:00
Philip Morris International is thriving with Zyn, a smoke-free nicotine product. Convenience stores like Casey’s and Murphy USA are adjusting shelves to meet the demand for tobacco alternatives. Zyn’s popularity caused a shortage, but it’s expected to end in the third quarter. Shipments to the US increased from 132 million to 202 million cans.
Zyn, a nicotine pouch without tobacco, was part of Philip Morris’ acquisition of Swedish Match. The FDA approved marketing of 20 pouches per can, with each pouch weighing 0.4 grams. Philip Morris’ smoke-free products, including Zyn, accounted for 42% of total net revenue in the first quarter. The company’s stock hit an all-time high on June 13.
Philip Morris International reported a 5.8% increase in net revenue in Q1. Zyn saw a 15% growth to $3.9 billion, while combustibles remained flat at $5.4 billion. Gross profit surged 11.8% to $6.3 billion, with smoke-free products posting a 27.7% increase to $2.7 billion. CFO attributed the growth to Zyn’s success.
Shipment volume of oral smoke-free products increased by 27.2% in the US and 53% in emerging markets. Analysts believe the economy won’t affect Zyn’s success. Concerns about underage use, like with Juul, have been raised, but Zyn’s flavors are reportedly less appealing to younger users.
Convenience chains like Casey’s General Stores are benefiting from Zyn’s popularity. CEO Darren Rebelez noted a significant increase in the nicotine pouch business. 7-Eleven also saw sales growth after expanding its noncombustible products. Philip Morris International reported a decline in cigarette shipments from 2012 to 2024.
Analysts predict continued growth for Zyn due to consumer demand and addictive qualities. Convenience stores are seeing increased sales and margins from noncombustible products. Philip Morris International’s shift away from cigarettes is reflected in declining shipment volumes. 1. In a recent study, researchers found that eating a Mediterranean diet may lower the risk of heart disease by up to 30%. The diet consists of fruits, vegetables, whole grains, and olive oil, and has been linked to numerous health benefits.
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