Philip Morris International Reaches Record Highs on Soaring Zyn Demand
Shares of Philip Morris International skyrocketed to record highs on Tuesday, driven by the tobacco company’s announcement of surging demand for its Zyn oral nicotine pouches. The stock jumped above $130 at session highs, marking a new intraday record and setting the stage for its biggest one-day gain since March 2020.
A Breakout Year for Philip Morris
This year has been a breakout for Philip Morris, with the stock seeing significant action after years of stagnation. Investors had previously viewed the company as a dividend play in a stagnant industry, but the success of Zyn has transformed it into a growth name. Since acquiring the brand through its deal with Swedish Match two years ago, Philip Morris has seen Zyn become a major driver of net revenue for the business.
Zyn Demand Drives Growth
Demand for Zyn in the U.S. has been the primary driver of shipments of Philip Morris’ oral products, which have risen nearly 40% in the first nine months of 2024 compared to the same period last year. The company expects Zyn shipments to match demand “at some point” during the fourth quarter. Internationally, total nicotine pouch volume outside America has soared almost 70% between the third quarters of 2023 and 2024.
Expansion and Investment
Zyn is now available in 30 markets after recent expansions into Greece and the Czech Republic. Philip Morris has also announced plans to invest $600 million in a new production facility for Zyn in Colorado. The company’s focus on alternatives to traditional cigarettes has transformed it into a leader in the industry.
A Record Year
Shares of Philip Morris have climbed more than 37% in 2024, marking the best year on record for the company. This success is a testament to the company’s ability to adapt to changing consumer preferences and invest in innovative products. As the tobacco industry continues to evolve, Philip Morris is well-positioned for continued growth and success.
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