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Philip Morris cancels all product launches in Russia, working on plans to exit the Russia market

Philip Morris International Inc. (PM) detailed on Thursday steps it is taking to cut back its operations in Russia, and its plan to exit the Russia market, in response to Russia's invasion of Ukraine. The cigarette and smokeless tobacco products company's stock rose 0.5% in premarket trading. The company said it discontinued "a number of its cigarette products" in Russia and reduced its manufacturing activities, suspended all marketing activities in Russia, canceled all product launches in Russia for 2022 and canceled its plan to make more than 20 billion Terea sticks for IQOS ILUMA in Russia, including the related ongoing investment of $150 million. Philip Morris said it is "working on options" to exit the Russia market. The moves follows the company's announcement on March 9 that it was suspending all investment in Russia. The company said it will continue to support the more than 3,200 employees it has in Russia. The stock has shed 4.0% year to date through Wednesday, while the S&P 500 has lost 6.5%.

-Tomi Kilgore

 

(END) Dow Jones Newswires

03-24-22 0916ET

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