Philip Morris International (PMI) has lowered its full-year profit forecast for the third time, projecting adjusted earnings per share of $8.26-$8.41. This revised guidance, down from previous projections, is attributed to adverse currency movements and increased costs stemming from the Middle East conflict. While revenues rose 10.4% year-on-year to $11.2bn in the second quarter, growth in the "smoke-free" segment, which includes the popular Zyn nicotine pouches, has slowed.

PMI acquired Zyn through its $16bn purchase of Swedish Match in 2022. Zyn has faced mounting competition in the US market, particularly from British American Tobacco's Velo Plus. PMI cited an "uneven competitive landscape" and challenges with US FDA approvals for certain product strengths and flavors as reasons for the slowdown. The company launched Zyn Ultra in June hoping to address these issues.

Despite these challenges, PMI received FDA authorization in June to market some Zyn pouches as less harmful alternatives to cigarettes. The company advocates for such products to aid smokers in transitioning. However, the World Health Organization has expressed concern that these products may attract new, younger users rather than solely helping existing smokers quit.