Feb 6 (Reuters) - Philip Morris International ( PM )

forecast higher-than-expected annual profit on Friday, betting

on strong sales of its leading nicotine pouch label, Zyn, even

as it strives to defend market share ‌from rising competition.

The world's largest tobacco company by market

capitalization, which ​sells Marlboro outside the U.S., is

farthest along in ‍an industry-wide effort to grow revenues ⁠from

smoking alternatives ⁠like vapes and nicotine pouches as smoking

rates fall in some ‌nations.

Zyn has quickly emerged as ​a star performer in Philip

Morris' ( PM ) portfolio of smoking alternatives, second only to

flagship heated ⁠tobacco device IQOS, thanks ‍to ​fast growth in

the critical U.S. market.

But it now faces a growing threat from rival brands ‍like

British American Tobacco's ( BTI ) Velo, which are capturing a

growing portion of U.S. nicotine pouch market.

The company said U.S. volumes of the nicotine pouch grew

19% in the fourth quarter, "supported by a wide range ​of

commercial ‍activities."

Large one-off promotions and other initiatives in the

third quarter had hit shares as investors ​worried about Zyn's

profitability.

Shares of Philip Morris ( PM ) were down about 1% in premarket

trading on Friday.

Philip Morris ( PM ) expects full-year adjusted earnings per share

of $8.38 to $8.53 for 2026, higher than analysts' estimate of

$8.33, according to data compiled by LSEG.

The ​company reported adjusted earnings of $1.7 per share for

the fourth quarter, in line with analysts' estimates.