April 22 (Reuters) - Philip Morris International lowered its full-year profit guidance on Wednesday, pointing to intensified competition in the nicotine pouch market and lingering regulatory uncertainty over its Zyn product family. The company, which markets Marlboro outside the United States, has been increasing investment to move beyond combustible cigarettes, but is encountering fierce rivalry from other pouch brands such as British American Tobacco's Velo and delays in approval for new Zyn variants.
Philip Morris said it now anticipates adjusted earnings per share for the full year in a range of $8.36 to $8.51, compared with its earlier forecast of $8.38 to $8.53. The updated outlook reflects the company’s assessment of competitive pressures and the regulatory environment for its alternative nicotine products.
On the regulatory front, popular nicotine pouch products have not yet been cleared for sale in the U.S. despite a fast-track Food and Drug Administration scheme. Agency scientists have expressed hesitancy about authorizing some products because of concerns about potential uptake among new users, including children, Reuters reported earlier this month. Philip Morris said it has included effects from the Middle East conflict in its planning but does not anticipate those effects to be prolonged.
For the first quarter, Philip Morris reported revenue of $10.15 billion, ahead of analysts’ average expectation of $9.91 billion compiled by LSEG. Quarterly adjusted earnings were $1.96 per share, beating the $1.83-per-share estimate.
The company has intensified spending to broaden its portfolio beyond traditional cigarettes while navigating a tougher competitive landscape in nicotine pouches. That strategic shift is taking place against the backdrop of FDA deliberations that have slowed market access for some pouch products in the United States.
Industry observers and investors will be watching how quickly Philip Morris can convert its investments into revenue streams that offset pressure on cigarette volumes and respond to competitive moves from rival pouch makers. The company's current guidance incorporates near-term geopolitical considerations and regulatory uncertainty but leaves open the possibility of future adjustments depending on market and approval developments.
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