The ZYN-sanity Continues As PMI Piles $232 Million to Meet "Workaholic" Demand....

Well, if my number crunching finance buddies didn’t have another reason to go cap another 5 packets of ZYN at their local gas stations, I guess a nice $232 million investment will do the trick. 

(Source: Giphy) 

That’s right, the ZYN-sanity sweeping through the minds of entrepreneurs, writers (like muah), investors, and whoever else claims their day to day tasks can’t be done without some sweet nicky (forget people trying to quit smoking), is still riding high - and Phillip Morris, owner of the ZYN brand, is continuing to feed it’s money printing machine.

(Source: Reuters) 

In short, Philip Morris International (PMI), the company that’s been trying to convince you they’re not just about cancer sticks anymore, is throwing down some serious cash ($232 million) to crank up ZYN production at its Kentucky plant.

This of course, follows the $16 billion PMI dropped to buyout Swedish Match (creator of ZYN) back in 2022, and the most recent $600 million investment to boost its new facility in Colorado. So clearly, PMI is feeling the “buzz” with meeting the roaring uptick in ZYN demand. 

(Source: Market Watch) 

Which makes sense, considering ZYN for PMI has become a legit money printing machine over the past year. For instance, for a company that’s trying to rebrand it’s image from “bad tobacco”,  PMI is raking it in with a +5.59% bump in year-over-year revenue - while while net income, net profit margin, and operating income have all exploded +53.44%, +45.28%, and +7.76% YoY. 

So obviously, you can see what I mean by raking it in - especially considering their last earnings report body bagged Wall Street estimates by +2.03% on EPS and +2.98% on revenue estimates. Now of course, this is impressive, but what’s really interesting is that the numbers could be even more seismic then they already are for the company.

(Source: Market Watch) 

As we all know, ZYN demand has been on fire, but in Q2, it hit a bit of a wall - a 54% growth slowdown thanks to supply chain issues. Which is one of the main reasons for the nice $232 million in the Kentucky plant. This solution is said to expand the Kentucky operation so PMI can churn out 900 million cans of ZYN annually by 2025. Yummy….

(Source: Giphy) 

What’s more, is that PMI basically told its facility workers to load up on ZYN themselves as they push towards 24/7 operations later this year. Because, you know, who needs sleep when you’ve got sweet Nicky running through your veins all day erryday. 

(Source: Thunder Dungeon) 

On the other hand, not all is rosy and buzzin’ for PMI. Sure you’d think that a product that doesn’t even have tobacco would get a pass, but nope - U.S. regulators still classify ZYN as a tobacco product, aka classic U.S. regulation. So even though the demand is high, regulators combined with a subpoena from Washington D.C. over flavored nicotine sales (don’t really understand that one), is a looming stumbling block for online sales.

But alas, when you’re kicking a$$ and smoking grass, you’re bound to get a few haters in your path, and simply put, that’s what PMI is dealing with right now. 

(Source: Giphy) 

It's clear the company has hit a goldmine of consumers who are spending money hand over fist for the “ZYN-sation” - and with the expansion set to wrap up by Q2 2025 (along with 540 new jobs, boosting the workforce by 40%), it’s clear the sky's the limit for PMI. 

On the investing side, the price action couldn’t agree more with the optimism as all 17 of our technical indicators at Stocks.News are screaming “Strong Buy”, while all 15 moving averages indicate more uptrend continuation for the stock.

Additionally, Jim Cramer just came out saying he “Never Recommends Tobacco Stocks” while talking about Philip Morris, meaning the company just escaped any bad juju Cramer has to give Translation: That’s a massive positive sign If I do say so myself. 

(Source: Investing Channel) 

So for you current PMI investors, kudos to you - but for you investors looking to jump on the ZYN bandwagon, do your due diligence to see if Philip Morris is right for you. Because right now, they are flying high, and the buzz doesn’t seem to be coming down any time soon.

Now obviously, do what you will with that information, but please don’t be dumb. I’m just bringing you the exploding story here, while I write this article with five ZYN pouches under my lip (double the ZYN, double the WIN) . So take what I say with a grain of salt. 

(Source: Giphy) 

In the end, keep an eye on Philip Morris International going forward. And in the meantime, stay safe and stay frosty friends! Until next time… 

Stocks.News does not hold positions in any companies mentioned in the article.