Philip Morris cuts annual profit forecast as currency volatility bites

June 2 (Reuters) - Philip Morris ‌International cut its ​annual ​profit forecast on Tuesday citing currency swings, though CEO Jacek Olczak said other risks to achieving its outlook ‌such as rising energy prices were manageable.

Olczak, speaking at the ⁠Deutsche Bank global consumer conference, said recent U.S. FDA moves to relax enforcement ‌on unauthorized vaping and ‌nicotine pouches was a "net positive," and reduces regulatory uncertainty for Zyn and should support category growth.

Shares of the tobacco giant were up ​about 1% in morning trading.

• Philip Morris now expects 2026 adjusted earnings per share of $8.31 to $8.46, a growth of 10.2% ⁠to 12.2% from 2025 levels, and lower than a prior forecast range of $8.36 to $8.51. Analysts ​were expecting a profit of $8.41 per share.

• CEO Olczak said the company has more flexibility than initially expected ​this year to offset certain headwinds.

• Company ‌said the newly released Zyn Ultra will be priced at a lower cost per pouch than its ⁠flagship range, in a move aimed at reducing its steep price premium and improving competitiveness.

• PMI expects a non-cash impairment charge of about $500 million ⁠owing to the value of its investment in a Canadian affiliate RBH in ​the second quarter of 2026.

• In April, the company lowered its 2026 adjusted profit forecast amid regulatory uncertainty over its Zyn nicotine pouches and rising competition ‌in tobacco products.

• Philip Morris has been expanding across smoke-free products including heated tobacco device IQOS, vapes ‌and oral nicotine pouches.

• It said recent price increases in Japan, ⁠driven by excise tax changes, ‌have weighed on category ​growth but so far have not materially hurt its market share.

(Reporting by Savyata Mishra in Bengaluru; Editing by ‌Shailesh Kuber)

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