### Philip Morris International Shares Hit Record Highs on Zyn's Success

Philip Morris International shares surged to unprecedented levels on Tuesday, fueled by remarkable demand for its Zyn oral nicotine pouches. The stock of the Connecticut-based tobacco giant surged past $130 during the trading session, marking a fresh intraday record. This spike also positions the stock to achieve an all-time closing high and register its most significant one-day gain since March 2020.

The surge in stock price follows Philip Morris touting a substantial boost in shipments of its Zyn product line. The enthusiasm surrounding Zyn, acquired via the company's deal with Swedish Match two years ago, has significantly shifted investor perception. After experiencing stagnant performance from 2013 to 2023, the stock is now being recognized as a growth asset rather than merely a dividend play.

"The No. 1 U.S. smoke-free brand continued to see very strong underlying momentum," said Chief Financial Officer Emmanuel Babeau during a call with analysts on Tuesday. Driven largely by demand in the U.S., shipments of Philip Morris' oral nicotine products skyrocketed nearly 40% in the first nine months of 2024 compared to the same period in 2023. This uptick is partly attributed to reduced supply constraints.

In the third quarter alone, U.S. shipments of Zyn cans increased by over 41% compared to the same period last year. Babeau expressed confidence that Zyn shipments would meet consumer demand sometime in the fourth quarter. International growth has also been notable, with nicotine pouch volume outside the U.S. soaring almost 70% between the third quarters of 2023 and 2024. Zyn is now available in 30 markets following its recent expansions into Greece and the Czech Republic.

Philip Morris highlighted Zyn as a primary revenue driver, alongside issuing financial results that surpassed analysts' expectations for the third quarter. Furthermore, the company has raised its full-year earnings per share outlook. Investing heavily in Zyn's future, Philip Morris announced earlier this year a $600 million investment to construct a new production facility for Zyn in Colorado.

Up more than 37% in 2024, Philip Morris shares are heading towards what could be the best year on record for the company since its 2008 split. While Philip Morris managed to maintain its international cigarettes business, Altria, which retained the U.S. cigarettes unit, continues to struggle, with shares lingering far below their 2017 highs.