Phillip Morris earnings cut back with Japanese market ‘below’ expectations

Cigarette giant Philip Morris International (PMI) cut its full-year earnings projection earlier today after struggling to increase Japanese demand in its heated tobacco device called iQOS.

The Marlboro cigarette maker slashed its expected diluted earnings from $5.25 to $5.40 in an earlier April forecast to a more downgraded range of $5.02 to $5.12.

Read more: The case for tobacco packaging restrictions goes up in smoke

André Calantzopoulos, current chief executive of the tobacco company, said: "We are implementing the right marketing and product measures to reinvigorate growth in Japan, which is undoubtedly well below our initial expectation this year."

Read more: Why Philip Morris's MD thinks the UK could be smoke-free in 10 years

Cigarrete shipment volume dropped 2.8bn units in the second quarter of 2018, falling 1.5 per cent year-on-year to 190.7bn units.

Meanwhile, despite its difficulty in Japanese markets, the companys heated tobacco products enjoyed a sharp 73 per cent rise.