It has invested heavily in a range of reduced-risk products, such as heated tobacco and vaping products, that are becoming more popular with increasingly health-conscious consumers. They now account for 30pc of its sales and are expected to contribute the majority of revenue by 2025.
Meanwhile, cigarette consumption offers a far more upbeat outlook than many investors may realise. Although England is aiming to achieve a smoking rate of 5pc or below among adults by 2030, the global picture is very different.
Currently, 1.1bn people smoke cigarettes. That figure is not expected to materially change by 2025.
With Philip Morris operating in 180 markets and having a 27pc global market share (excluding the US and China) that includes major brands such as Marlboro, it is well placed to capitalise on continued high demand for its range of products.
It also has sufficient time to transition towards less harmful products over the coming…