Philip Morris CEO: There are already markets where IQOS is more profitable than cigarettes

“The profitability of IQOS depends on the market. We have made significant investments in research, infrastructure, marketing, etc.

However, IQOS for the whole group is already profitable. There are already markets where IQOS is more profitable for us than cigarettes.

This is because we sell more IQOS there. In Japan, for example, IQOS sells more. It’s already happening, “he told reporters on Thursday.

Speaking at the Baltic Investor Forum, J. Olczak recalled that IQOS was introduced 6 years ago.

“It just came to our notice then. At the end of the last quarter, IQOS was available in 66 markets,” he said.

According to the rapporteur, an estimated 14 million As a result, adults around the world stopped smoking cigarettes.

“Smokeless products are projected to account for more than half of total revenue in 2025.

In Lithuania, one in four smokers has already switched to IQOS, in Vilnius, one in three, ”said J. Olczak.

He stressed that the best option is not to start smoking or to quit.

“But the reality is that 9 out of 10 smokers will continue to smoke,” he said.

In a press conference after the announcement, Mr. Olczak explained that the excise policy should encourage some consumption.

“If we want them to consume less product, then the rates should be higher. If we want the demand for something to be higher, then the rates should be lower.

Today, taxes on hot tobacco products are lower in most countries. By the way, they have less tobacco and their production is more expensive (not to mention the research), ”said Philip Morris International, director of the company.

Philip Morris International has been selling smokeless products in Lithuania since 2017, in Latvia since 2018 and in Estonia since December 2020.