Philip Morris International Inc. (NYSE: PM) is reportedly exploring a sale of its cigar business, marking another step in its transition toward smoke-free alternatives. According to Bloomberg, the company is seeking over $1 billion for the divestment.
Strategic Shift: Moving Beyond Traditional Tobacco
Philip Morris acquired the cigar unit through its 2022 acquisition of Swedish Match, a deal aimed at reducing dependence on cigarette sales. Since then, the company has aggressively expanded its smoke-free portfolio, including:
? ZYN nicotine pouches, which have seen strong U.S. demand? IQOS heated tobacco devices, gaining traction after FDA approval in early 2024
Despite this pivot, traditional cigarettes—especially the Marlboro brand—continue to drive significant revenue, particularly in emerging markets.
For investors analyzing Philip Morris’ evolving revenue mix, the Revenue Product Segmentation API provides insights into sales performance across different product lines.
Financial Performance & Market Impact
Philip Morris outperformed expectations in Q4, with management expressing optimism for 2025 earnings growth. The planned cigar business sale aligns with the company’s broader long-term profitability strategy.
Additionally, the Ratios (TTM) API offers investors deeper insight into Philip Morris’ valuation metrics, profitability, and debt levels as it transitions toward a smoke-free future.
What’s Next for Philip Morris?
If completed, the cigar unit sale could free up capital to further expand Philip Morris’ smoke-free innovations, potentially accelerating the adoption of IQOS and ZYN products. The move also signals a commitment to long-term growth outside of traditional tobacco.

Key Takeaways for Investors
? Philip Morris seeks $1B+ for its cigar business amid smoke-free transition? ZYN and IQOS gain momentum, especially in the U.S.? Strong Q4 earnings reinforce confidence in 2025 growth outlook? Cigarette sales still dominate in international markets
With a clear focus on next-generation tobacco alternatives, Philip Morris is positioning itself for sustained growth in the evolving tobacco industry.