Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com-- Philip Morris International Inc (NYSE:PM) is considering a sale of its cigar business, Bloomberg reported on Sunday, as the tobacco giant furthers its push towards smoke-free products.
The company is seeking over $1 billion for the sale, the Bloomberg report said, citing people with knowledge of the matter.
Philip Morris had acquired the cigar unit as part of its acquisition of Swedish Match in 2022, which was also part of the former’s attempt to diversify away from smoke-based products such as cigarettes.
To this end, Philip Morris rolled out several of Swedish Match’s smoke-free products, such as ZYN, in the U.S. over the past few years, to strong demand.
But cigarettes still remained a major driver of its earnings, especially its iconic Marlboro brand. While Philip Morris is pursuing smoking alternatives in the U.S., its overseas revenues are driven chiefly by cigarette sales, especially in emerging markets.
The company clocked stronger than expected earnings in the fourth quarter, and also presented a positive outlook for 2025.
The company’s IQOS smoke-free tobacco device has also seen stronger demand in the U.S., after the Food and Drug administration approved the product in early-2024.