Decline in Ukrainian tobacco market in Q4 2025 accelerates to 16.5% – PMI

The decline in the tobacco market in Ukraine in the fourth quarter of 2025 accelerated to 16.5% from 15.0% in the third quarter, according to the annual report of Philip Morris International (PMI).

According to the report, Ukraine’s market declined 10.6% in volume over the year, compared with a 3.5% drop across Europe.

The decline was driven by a 5% reduction in cigarette sales, while sales of heated tobacco units (HTU) continued to grow.

In Europe, significant fourth-quarter declines were recorded in Poland (-15.4%) and France (-9.4%), partially offset by growth in Bulgaria (+8.3%), Germany (+1.7%), and Serbia (+6.4%).

Overall, Philip Morris increased global sales 1.4%, supported by a 12.8% rise in smoke-free products, including 11% growth in HTU, while cigarette sales fell 1.5%.

As a result, the company’s net revenue rose 7.3% to $40.6 billion, including a 15% increase in smoke-free products to $16.9 billion.

The report notes that in 2025, Ukraine accounted for roughly 2% of total cigarette and HTU shipments and about 1% of total net revenue.

It is impossible to predict when and to what extent we will be able to fully normalize our operations in Ukraine, or the extent to which our staff, facilities, inventory, and other assets will remain intact, the document said.

As of December 31, 2025, Philip Morris International’s total assets in Ukraine amounted to approximately $0.7 billion, excluding intercompany balances.

In 2024, Philip Morris Ukraine opened a new factory in Lviv region, investing $30 million in its launch. The company’s Kharkiv factory has remained suspended since February 24, 2022.

Philip Morris Ukraine has operated in the Ukrainian market since 1994. On Jan. 30, 2026, the company reported a Russian missile strike that damaged part of its Kharkiv factory.

According to YouControl, for the first nine months of 2025, revenue at PJSC Philip Morris Ukraine fell 13.3% to UAH 14.23 billion.