The decline in the tobacco market in Ukraine accelerated to 16.5% in the fourth quarter of 2025 from 15.0% in the third quarter, according to the annual report of Philip Morris International (PMI). According to the report, the Ukrainian market lost 10.6% in real terms over the year as a whole, while the European market as a whole lost 3.5%.
This decline was caused by a 5% drop in cigarette sales, while sales of heated tobacco products (HTU) continued to grow.
In the European region, a significant drop in sales in the fourth quarter of last year was also recorded in Poland (15.4%) and, to a lesser extent, in France (9.4%), but this was partially offset by sales growth in Bulgaria (8.3%), Germany (1.7%), and Serbia (6.4%).
Overall, Philip Morris managed to increase its global sales by 1.4% last year, thanks to a 12.8% increase in sales of smokeless products, including an 11.0% increase in HTU sales, while cigarette sales fell by 1.5%.
As a result, the company’s net revenue grew by 7.3% to $40.6 billion, including smokeless products, which grew by 15% to $16.9 billion.
The report notes that in 2025, Ukraine accounted for about 2% of total cigarette and HTU shipments, as well as about 1% of total net revenue.
“In Ukraine, it is impossible to predict when and to what extent we will be able to fully normalize our operations, as well as to what extent our personnel, facilities, inventories, and other assets will remain intact,” the document also states.
As of December 31, 2025, PMI’s total assets in Ukraine amounted to approximately $0.7 billion, excluding intercompany balances.
As reported, in 2024, Philip Morris Ukraine opened a new factory in the Lviv region, investing $30 million in its launch. The company’s Kharkiv factory has been suspended since February 24, 2022.
Philip Morris Ukraine (PMU) has been operating in the Ukrainian market since 1994. On January 30, 2026, the company reported a Russian missile strike that damaged part of the company’s Kharkiv factory.
According to data from YouControl, in the first nine months of 2025, Philip Morris Ukraine’s revenue decreased by 13.3% to UAH 14.23 billion.
