Philip Morris (TABAK) H2 2025 earnings summary

Executive summary

• Achieved consolidated net revenues of CZK 21.7 billion in 2025, up 0.4% year-over-year, driven by favorable net pricing and growth in smoke-free products, despite currency headwinds and declining combustible volumes.

• Net income declined 9.2% to CZK 3.0 billion, reflecting lower combustible volumes and increased strategic investments in brand equity and consumer engagement.

• Continued transformation towards a smoke-free future, with over 60% of net revenues from smoke-free products and significant investments in new product categories and manufacturing capacity.

Financial highlights

• Consolidated revenues (net of excise tax and VAT): CZK 21.7 billion (+0.4% year-over-year).

• Profit from operations: CZK 3.7 billion (-7.1% year-over-year).

• Net income: CZK 3.0 billion (-9.2% year-over-year).

• Earnings per share: CZK 1,106 (down from CZK 1,218 in 2024).

• Dividend approved: CZK 1,220 per share.

Outlook and guidance

• Ongoing investments in smoke-free product innovation and manufacturing, including the launch of ZYN nicotine pouch production in 2026.

• Anticipates continued market contraction in combustibles, offset by growth in vaping and oral nicotine segments.

• Cautious outlook for 2026 due to external risks, including energy market volatility and geopolitical uncertainties.