Philip Morris International Inc.’s senior management presented the company’s business strategies last week at a virtual investor meeting, broadcast from the company’s operations center in Lausanne, Switzerland.
In addition to financial earnings projections, some of the highlights of the seminar included the planned launch in the second half of 2021 of IQOS ILUMA, the next generation of its IQOS heat-not-burn product featuring internal heating based on Smartcore™ induction technology. PM also plans to launch IQOS VEEV, its MESH technology e-vapor product in over 20 markets in 2021.
PMI sees the commercialization of IQOS in a total of 100 markets by the end of 2025 from 64 markets at the end of 2020, and they are increasing the 2025 ambition for the total net sales contribution of the company’s smoke-free products to more than 50%, compared with the planned range of 38-42% previously. The company also plans to have at least $1 billion in net revenues from “beyond nicotine” products in 2025.
With the “right regulatory frameworks, dialogue, and support from civil society”, Philip Morris maintains that cigarette sales can end within 10-15 years in many countries.
“In just five years, we have thoroughly transformed our company, building IQOS into a top-5 global nicotine brand — with nearly $7 billion in net revenues and over 17 million users across 64 markets — while maintaining our leadership position in the international cigarette category," said André Calantzopoulos, chief executive officer. “This next growth phase is underpinned by our unmatched portfolio of innovative products. We are very excited to announce the planned launch of IQOS ILUMA—the next generation of our IQOS heat-not-burn product featuring a new internal heating induction technology—during the second half of this year.”
“As outlined today, we are well positioned to deliver excellent top- and bottom-line growth, as well as strong shareholder returns. We now aim to be a majority smoke-free product company by 2025, an important milestone toward our ambition to deliver a smoke-free future, to the benefit of adults who would otherwise continue to smoke, society, the company and our shareholders.”