Philip Morris International faced a significant downturn on Wall Street on Tuesday after the sales growth of its popular Zyn nicotine pouches fell short of analysts’ expectations.
The company’s overall revenue also failed to meet forecasts, prompting a reduction in its outlook due to disappointing cigarette sales. This led to a drop of over 8% in its share price.
Last year, Philip Morris experienced production issues with Zyn, but these have since been resolved. CFO Emmanuel Babeau stated that the company is “pulling out all the stops” to maximise Zyn’s growth, indicating that they will resume normal operations with increased promotional efforts.
Meanwhile, Wall Street is in the midst of a busy earnings period. Companies such as General Motors and Coca-Cola also released their financial reports on Tuesday. Overall market sentiment remained cautious following record highs from the previous day.
