EU Illicit Cigarette Trade Costs EUR 16.7B in Lost Taxes, PM Study Highlights Market Headwinds
PM sits 22% above its 52-week low of $142.11.
Summary
A study commissioned by a Philip Morris International subsidiary reveals that illicit cigarette consumption in the EU led to an estimated EUR 16.7 billion in lost tax revenues for 2025. Illicit trade now accounts for 10.3% of total consumption in the region, representing 55.3 billion cigarettes across 38 European countries. This significant rise in illicit trade creates a challenging operating environment for legitimate tobacco companies like PM, potentially impacting their sales and market share in Europe. Philip Morris's President of Europe Region noted that excessive tax hikes and product bans exacerbate the problem, highlighting the company's stance on regulatory policy.
At the time of this announcement, PM was trading at $173.68 on NYSE in the Trade & Services sector, with a market capitalization of approximately $270.7B. The 52-week trading range was $142.11 to $193.05. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: dpa-AFX.