Overview Of The Operating Performance Of The Four Major Multinational Tobacco Companies

I. Philip Morris International's net income in the second quarter of this year increased by 7.1% year-on-year.
Philip Morris International's net income in the second quarter reached a record high of 10.14 billion US dollars, up by 7.1% year-on-year. The operating profit was 3.712 billion US dollars, up by 7.8% year-on-year. The company's stock earnings achieved significant growth.
In the second quarter of this year, the shipment volume of Philip Morris International's smokeless tobacco products increased by 11.8% year-on-year, and the net income increased by 15.2% year-on-year, with the gross profit increasing by 23.3%. The net income of smokeless tobacco products accounted for 41% of the company's total net income, and the gross profit accounted for 42% of the company's total gross profit, both increasing by 2.9% and 3.8% respectively. The company's smokeless tobacco products have now covered 97 markets worldwide, including 20 markets where its three flagship brands (IQOS, ZYN, VEEV) are sold.

As the core product of Philip Morris International's smokeless tobacco business, the net income of IQOS heated cigarettes exceeded 3 billion US dollars in the second quarter of this year, consolidating its brand position and driving the growth of global heated cigarette sales. Philip Morris International currently holds a 76% market share in the global heated cigarette market.
In the e-cigarette sector, VEEV e-cigarettes maintained a growth momentum in profitability and have now covered 42 markets worldwide, occupying the first position in the field in 6 European markets (Greece, Italy, etc.).
In the oral products sector, Philip Morris International's shipment volume increased by 23.8% in the second quarter of this year, with the shipment volume of nicotine pouches increasing by more than 40% and now covering 44 markets worldwide.
In the traditional combustible tobacco business, Philip Morris International's net income increased by 2.1% year-on-year and the gross profit increased by 5%. Philip Morris International's overall share of cigarette products in the global market remained stable in the second quarter of this year, and the market share of the "Marlboro" brand cigarettes continued to grow, reaching the highest point since 2008 in quarterly market share.
Philip Morris International's CEO Ozak said: "The performance in the second quarter reflects the good development momentum of our multi-category business. The adjusted market sales volume of IQOS increased, the sales volume of ZYN accelerated, and the combustible tobacco business also showed resilience. Given the performance in the first half of this year, we have raised our full-year operating performance expectations."
Philip Morris International expects that the total shipment volume of cigarettes and smokeless tobacco products in 2025 will increase by approximately 1%, cigarette sales will decrease by approximately 2%, and the sales volume of smokeless tobacco products will increase by 12% to 14%; the net income will increase by 6% to 8% year-on-year, and the operating revenue will increase by 11% to 12.5%.
II. British American Tobacco's revenue in the first half of this year decreased by 2.2% year-on-year.
British American Tobacco's revenue in the first half of this year reached 12.07 billion pounds (1 pound is approximately 9.65 yuan), down by 2.2% year-on-year; the revenue of new tobacco products was 1.651 billion pounds, basically the same as the same period last year; the operating profit was 5.07 billion pounds, up by 19.1% year-on-year.
British American Tobacco's CEO Marocco said: "The operating performance in the first half of this year exceeded expectations. We are steadily achieving our annual goals. The number of consumers using our company's new tobacco products increased by 1.4 million, reaching 30.5 million. The revenue of new tobacco products accounted for a higher proportion of the company's total revenue compared to the same period last year."
British American Tobacco performed well in the US market, with revenue and profits growing for the first time in two years, the successful launch of nicotine pouch Velo Plus, and the growth in sales and market share of traditional tobacco products; in Africa and the Middle East, the company's operating performance continued to grow; in the Asia-Pacific region, the financial and regulatory policies in Bangladesh and Australia had certain impacts on it. Among the new tobacco products, the Velo brand is performing well.
"By prioritizing investments in high-profit products, we achieved a high return rate. Calculated at a fixed exchange rate, the contribution of new tobacco products to the company has further increased. The good cash conversion ability, combined with the recent partial divestment of ITC shares, has enhanced our financial flexibility. Through strengthening financial measures, we strive to save costs and make reinvestments. I believe that the current investment behavior will drive the company's revenue to return to the growth track in 2026," said Marocco.
Three. Japan Tobacco's revenue in the first half of this year increased by 10.5% compared to the same period last year.
Japan Tobacco has performed well in its business performance this year, with several indicators significantly improving compared to the same period last year. In the first half of this year, Japan Tobacco's revenue reached 1.73 trillion yen (1 yen is approximately 0.05 yuan), an increase of 10.5% compared to the same period last year; core revenue calculated at a fixed exchange rate reached 1.72 trillion yen, an increase of 14.2% compared to the same period last year; operating profit reached 479.9 billion yen, an increase of 10.9% compared to the same period last year; net profit reached 319.9 billion yen, an increase of 4.8% compared to the same period last year.
Looking forward to the whole year, Japan Tobacco has fully raised its 2025 operating performance expectations: revenue expectations are raised by 71 billion yen, an increase of 6.2%; core revenue expectations calculated at a fixed exchange rate are raised by 54 billion yen, an increase of 8.4%; operating profit expectations are raised by 68 billion yen, an increase of 128.5%; net profit expectations are raised by 44 billion yen, an increase of 175.6%; cash flow expectations increase by 6.5 billion yen, and are 112 billion yen lower than the original forecast.
The president and CEO of Japan Tobacco, Masato Tsuramoto, said: "Japan Tobacco performed steadily in the first half of the year. The stable pricing ability of the tobacco business and the significant contribution of the Vector Group acquired last year to the company's performance have driven a significant increase in operating profit."
Four. The net income of the Empire brand in the first half of the 2025 fiscal year increased by 3.2% compared to the same period last year.
According to the fixed exchange rate, the net income of the Empire brand in the first half of the 2025 fiscal year, including traditional tobacco business and new tobacco products business, increased by 3.2%.
The CEO of the Empire brand, Boehmhard, said: "Our operating performance in various markets has generally achieved growth, which proves that the company's strategy of participating in market competition as a challenger is correct, and also reflects the results of our long-term efforts in improving the ability to serve consumers, strengthening sales execution and performance culture building."
In the traditional tobacco business, the total market share of the Empire brand in five priority markets increased by 6 percentage points, exceeding the company's original plan to maintain market share. The traditional tobacco business offset the impact of sales decline through pricing strategies.
In the new tobacco products, the Empire brand's three product categories of e-cigarettes, heated cigarettes and nicotine pouches all increased market share and net income, which prompted the company's new tobacco products net income to increase by 15.4% and the adjusted operating loss to decrease by 14% compared to the same period last year. The Empire brand's nicotine pouch product achieved growth in all markets, especially the Zone brand nicotine pouch in the United States further increased its market share.
"Our operational measures have brought good financial performance and abundant cash flow, which provides strong support for enterprise investment and rewarding shareholders. The Empire brand has launched a 1.25 billion pound stock repurchase plan and increased the interim dividend to return to shareholders," Boehmhard said.

Despite the uncertainty in the global economic environment, the Empire brand is still expected to achieve its full-year operating performance targets, and the performance growth in the first half of the year provides a good foundation for the company to achieve its full-year targets. Bomhard said: "Looking to the future, we are committed to implementing the 2030 strategy, further strengthening the combustible tobacco products and new tobacco products business, and achieving sustainable growth and creating long-term value for shareholders through gradual dividend increases and continuous stock repurchases over the next five years." (Yang Linxi, Cen Pinpin, Wang Wenjie, Wang Yifan, Zheng Jie, Pang Min, Yang Hailong compiled and translated based on the FMC International website, "International Tobacco Journal", Tobaccoreporter website, and Empire Brand website)