21.2 million people worldwide have replaced cigarettes with IQOS
Philip Morris International announced its financial results for the fourth quarter of 2021 and for the entire financial year. The leader in the transformation of the tobacco industry reported an increase of 1.2 points - up to 6.8%, the market share of heated tobacco products in the markets where IQOS is offered, except for the United States.
The trend of 1/3 of the company's revenues is generated by smokeless products, and the total number of IQOS users by the end of 2021 amounts to approximately 21.2 million people (an increase of nearly 800,000 people in the last 3 months of the year), with about 15.3 million of them switching entirely to IQOS and quitting.
71 are the markets in which Philip Morris International offers its leading smokeless platform with the ambition to become 100 by 2025.
"Our business achieved excellent results in 2021 with growing overall sales growth, high single-digit organic growth in net earnings and double-digit growth in adjusted earnings per share at a reduced value compared to the previous year, which was affected by the pandemic. We are pleased that in the fourth quarter of the year we accelerated and the results for this period are better than expected. This includes a gradual increase in IQOS users, as well as a stable share in the category of conventional cigarettes, as our product portfolio initiatives have paid off and anti-epidemic restrictions have been relaxed in many markets. We are entering 2022 with a solid foundation supported by IQOS and exciting innovation in our wider portfolio of smokeless products, and we anticipate organic growth from our core business of 4% to 6%,” said Jacek Olczak, CEO of Philip Morris International.
In addition to expanding the smokeless category with new products, last year Philip Morris International made a clear bid to enter the field of therapeutic products - part of the strategy "Beyond Nicotine" (Beyond Nicotine), completing the acquisition of 3 pharmaceutical companies. By 2025, the company plans to generate at least $ 1 billion in revenue for the production and commercialization of modern therapeutic products for a better life. Entering new business territories began with the acquisition of the Danish company Fertin Pharma, which specializes in the production of medicinal products based on oral administration systems - tablets, chewing gum and more.
This was followed by the acquisition of the American OtiTopic, known for its innovative drug in the last stage of testing for the treatment of acute myocardial infarction, which is accepted. The initial results of the clinical trials of the drug show that its effect by inhalation is significantly faster - 2 minutes, compared to 20 minutes. In September 2021, the company also acquired 75% of the shares of the leading British pharmaceutical company for the production of inhalers Vectura.
