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July 23 (Reuters) - Philip Morris International pushed
the test-launch of its heated tobacco device, IQOS, in the U.S.
to the fourth quarter on Tuesday and lowered its annual forecast for
the heated tobacco business.
The pilot was earlier scheduled to run in Austin, Texas, in the second quarter,
for which the company reported results on the day.
The company declined to comment on why the launch had been delayed.
Philip Morris has invested billions to promote and expand its portfolio of alternatives to traditional combustible cigarettes amid stricter regulations
and falling smoking rates in some markets.
The launch of its flagship heated tobacco device in the United States is also facing resistance from health campaigners,
who have written to regulators in the country accusing the company of misrepresenting past regulatory decisions, Reuters
reported last week.
The company also awaits market authorization from the U.S.
Food and Drug Administration for its IQOS ILUMA device, which it
expects by the second half of 2025.
A ban on flavored heated tobacco in the European Union has already hit shipments this year, with Philip Morris saying the impact from the ban was
"slightly greater" than previously assumed.
This led the company to temper its expectations for volume growth in the heated tobacco
category to around 13% for the full year, down from between 14% and
16% expected earlier.
However, Philip Morris topped quarterly expectations and
raised its annual sales and profit forecasts, betting on demand for its Zyn nicotine pouches,
as well as higher cigarette pricing. (Reporting by Juveria Tabassum and Emma Rumney;
Editing by Pooja Desai)
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