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Philip Morris Sees $1.2 Billion Gain in Smoking Substitutes

  • CEO increasingly confident new products will boost profit
  • HeatSticks to be sold in as many as 35 countries next year
iQOS electronic cigarettes.

iQOS electronic cigarettes.

Photographer: Akio Kon/Bloomberg
Updated on

Philip Morris International Inc. is boosting investments in cigarette alternatives to expand sales to more countries next year, aiming to lead the tobacco industry’s push into reduced-risk products that may eventually replace traditional smokes.

The Marlboro maker has “increasing confidence” that it will reach the upper end of its forecast for that business to add $700 million to $1.2 billion to earnings by 2020, Chief Executive Officer Andre Calantzopoulos said at an investor presentation in Lausanne, Switzerland, on Thursday. It plans to spend an additional $100 million this year on so-called next-generation products, taking the total to $1.2 billion.