Philip Morris International, the former non-American unit of Altria, the group behind Marlboro cigarettes, has reported a 23 per cent jump in second-quarter profits.

The company, which was spun out of Altria in March and also sells the L&M, Bond Street, Chesterfield and Lark brands, announced a $1.82 billion (£900 million) profit for the quarter, better than expected, as price increases helped to push up group revenue by 15 per cent to $6.71 billion.

The profit equates to 86 cents a share, slightly ahead of the analyst consensus estimate of 83 cents. The company increased its prediction for its full-year profit to $3.32 to $3.38 a share, from between $3.18 and $3.24.

Louis Camilleri, the chairman and chief executive, said that Philip Morris had benefited from what he called continuing business momentum, with an increase in organic volume, solid growth in net revenues and strong income performance.

Philip Morris managed to increase sales by 15 per cent and profit by 20 per cent in the European Union, despite a 3.7 per cent decline in the region's market during the second quarter as people reacted to indoor public smoking restrictions in Britain, France, Germany and Portugal.

Second-quarter sales in Eastern Europe, the Middle East and Africa jumped by 19 per cent and profits by 28 per cent. In Latin America and Asia, profits rose by 44 per cent and 22 per cent, respectively.

Altria spun off Philip Morris after doing the same to its Kraft Foods subsidiary a year earlier. The move was designed to liberate the group's expanding cigarette businesses in Asia and Eastern Europe from its struggling unit in the United States, which has been hit by falling demand from American consumers and by costly litigation.

Philip Morris International's total cigarette shipment volume was 223.2 billion in the second quarter, a 1 per cent rise on the period a year earlier. Of these, 64.8 billion went to the EU, 78.3 billion to Eastern Europe, the Middle East and Africa and 56.8billion to Asia. A further 22.3billion were shipped to Latin America.

Judy Hong, a Goldman Sachs analyst, wrote in a research note: “Overall, we think second-quarter results reinforce [Philip Morris International's] strong position in the global tobacco market, with solid underlying operating growth being driven by healthy top-line growth and continued cost savings.”

Charles Norton, portfolio manager for the Vice Fund, said: “The report looked good on all fronts. Every single part of the report illustrated to us that they continue to fire on all cylinders.”

Shares in Philip Morris rose 2 cents to $52.07 in midday trading on the New York Stock Exchange.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive