Philip Morris International Just Reported Zyn-tastic Q1 Results. Can Zyn Propel the Stock Higher?
When it comes to tobacco stocks, one of the first things that generally draws in investors is their high yields. However, Philip Morris International (NYSE: PM) offers investors an attractive dividend yield and one of the biggest underappreciated growth stories for consumer products.
Phillip Morris International just posted another terrific quarter and raised its guidance when it reported its first-quarter earnings results. These results were once again led by Zyn, which saw its volume surge nearly 80% year over year in the U.S. to 131.6 million cans. Overall, Phillip Morris saw its revenue increase 11% on an organic basis to $8.8 billion and organic operating profit climb 22% to $3.0 billion.
Zyn is a nicotine pouch product that Philip Morris acquired as part of its acquisition of Swedish Match at the end of 2022. The product is made of nicotine powder and flavorings such as mint or cinnamon and does not contain any tobacco. Since the product does not contain tobacco, users don't have to spit like they do with traditional chewing tobacco.
Source Fool.com
