Tobacco company Philip Morris International (PMI) said in reporting its second-quarter earnings on Wednesday that smoke-free products accounted for roughly 42% of total net revenues—an increase of 0.5 percentage points from the same period last year.
For the quarter, the company reported revenue was $11.2 billion.
“We delivered outstanding results in the second quarter, driving net revenues to over $11 billion for the first time with excellent growth across all headline metrics,” Group CEO PMI Jacek Olczak said.
In June, PMI expanded the Zyn portfolio in the United States with the first shipments of Zyn Ultra (9 milligram and 11 milligram moist variants at a lower price-per-pouch), as well as additional flavors within the Zyn dry flagship lineup.
“These launches are an important step in enhancing the portfolio and optimizing Zyn’s price premium, ensuring Zyn can effectively play in the most dynamic growing segments of the category,” the company said.
PMI said it plans to continue expanding the Zyn lineup with the launch of 1.5 milligrams and 8 milligrams dry variants in the third quarter.
The company also reported this month it rolled out a new brand campaign for Zyn called “When it Clicks.”
To support the newly expanded Zyn portfolio, PMI also said it plans to accelerate U.S. investments in the second half to maximize the long-term value of the brand and prepare for the future launch of its Iqos Iluma heated tobacco products.
On June 30, the Food and Drug Administration issued modified risk granted orders to Swedish Match USA Inc., which is owned by PMI, for 20 Zyn nicotine pouch products.
The products, each with two nicotine strengths (3 milligrams and 6 milligrams), include Zyn Chill, Zyn Cinnamon, Zyn Citrus, Zyn Coffee, Zyn Cool Mint, Zyn Menthol, Zyn Peppermint, Zyn Smooth, Zyn Spearmint and Zyn Wintergreen.
PMI’s global corporate headquarters is in Stamford, Connecticut.
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