Philip Morris to lift Zyn investment, cigarette demand drives earnings beat

Second-quarter revenue rose 10.4% to $11.19 billion, topping analysts' estimate of $10.63 billion, according to data compiled by LSEG.

Quarterly adjusted profit per share, which included a 3 cent currency hit, rose 15.2% to $2.20. Analysts expected a profit of $2.05 per share.

Philip Morris recently received regulatory approval allowing certain Zyn nicotine pouches - which users insert under their lip to get a nicotine buzz - to be marketed as less harmful than cigarettes, but has faced competition and pricing pressure.

The company launched Zyn Ultra, a higher-strength variant, in June at a lower per-pouch price than its flagship Zyn products, seeking to defend market share from rivals such as British American Tobacco's BATS.L Velo.

"To support the newly expanded Zyn portfolio, we intend to accelerate U.S. investments in the second half to maximize the long-term value of the brand," the company said in a statement, adding that it plans to launch 1.5 mg and 8 mg variants of Zyn in the current quarter.