Feb 6 (Reuters) - Philip Morris International forecast higher-than-expected annual profit on Friday, betting on strong sales of its leading nicotine pouch label, Zyn, even as it strives to defend market share from rising competition.
The world's largest tobacco company by market capitalization, which sells Marlboro outside the U.S., is farthest along in an industry-wide effort to grow revenues from smoking alternatives like vapes and nicotine pouches as smoking rates fall in some nations.
Zyn has quickly
emerged as a star performer in Philip Morris' portfolio of smoking alternatives, second only to flagship heated tobacco device IQOS, thanks to fast growth in the critical U.S. market.
But it now faces a growing threat from rival brands like British American Tobacco's Velo, which are capturing a growing portion of U.S. nicotine pouch market.
The company said U.S. volumes of the nicotine pouch grew 19% in the fourth quarter, "supported by a wide range of commercial activities."
Large one-off promotions and other initiatives in the third quarter had hit shares as investors worried about Zyn's profitability.
Shares of Philip Morris were down about 1% in premarket trading on Friday.
Philip Morris expects full-year adjusted earnings per share of $8.38 to $8.53 for 2026, higher than analysts' estimate of $8.33, according to data compiled by LSEG.
The company reported adjusted earnings of $1.7 per share for the fourth quarter, in line with analysts' estimates.
(Reporting by Angela Christy in Bengaluru and Emma Rumney in London; Editing by Sahal Muhammed)
