Earlier today, Philip Morris International (PMI), the Cigarette giant, decreased the full-year earnings projection of the company after struggling to increase the Japanese demand in iQOS, its heated tobacco device.
The Marlboro cigarette maker reduced its expected diluted earnings from $5.25 to $5.40 in an earlier forecast last April to a more downgraded range between $5.02 to $5.12. However, the investors brushed off the better-than-expected quarter as they fretted regarding the company’s reduced outlook.
The current chief executive of the tobacco company, André Calantzopoulos, stated: “We are implementing the right marketing and product measures to reinvigorate growth in Japan, which is undoubtedly well below our initial expectation this year.”
The volume of cigarrete shipment plummeted by 2.8 billion units during the second quarter of this year, dropping by 1.5 percent year-on-year to 190.7 billion units.
The shares of Philip Morris International (PM) are dropping on Thursday, after its second-quarter earnings report.
Meanwhile, despite the difficulty that the company is experiencing in the Japanese markets, its heated tobacco products was able to enjoy a sharp 73 percent increase.