Philip Morris International Cuts Profit Forecast

Philip Morris International cut its annual profit forecast due to regulatory uncertainty surrounding its Zyn nicotine pouches and increased competition in tobacco products. Despite this, the company's shares rose after it reported better-than-expected first-quarter sales and profit. The United States — Food and Drug Administration in the United States has been hesitant to authorize new nicotine pouch products, citing potential risks to new users, including children. This regulatory environment, along with growing competition from brands like British American Tobacco's Velo, has impacted Zyn's U.S. shipment volumes, which fell by 23.5%. Philip Morris International has factored a small impact from the Middle East conflict into its forecast but does not expect a prolonged effect.