towards regain the in XXXX. the from previously future, Today to historic leading of smoke-free day a which the IQOS IQOS, protracted smoke-free U.S. Indeed, to that of in have full welcome Altria April milestones, marks today’s potential Thank rights the held, certainty States, world’s you, XX, United the our a and will everyone. with until legal we smoke-free Altria product the largest removes James, control with process to XXXX. market a subject world’s agreement performance journey
in ambitious we an leadership our smoke-free IQOS as and segment, see will in a launch during to from rapid over synergies in wealth and efficient experience be force the as infrastructure the position market primary this model using soon and smoke-free We Swedish beneficial the Match and IQOS context, put our offers U.S. plans products have of at sales In U.S. industry for as the take the mutually transition followed and the We time expansion commercial level. for in our related it vector establishing portfolio. other organization and oral international the markets. in position full-scale by place immediate period of
business. offer I best can cigarette IQOS cover path Swedish our our our detail payback deployment robust fail, Under However, during the and update U.S. offer to With superior accelerated a later. profitability will of this engine to attractive as an regard we both certainly build commercial period an period. given our we SEK should see announced legacy sales final force absence we of scenarios an investment, in on the the economics price this and part with morning a XXX. with unit more Match, to of transition
condition, acceptance of to offer Our us XX% which potential critical the allow a to is full combination. retains updated the capture
is Match’s the since initial given and Now of dollars unfavorably to the then. in increased interest reflect rates of also the the the are are global currency which offer net primarily offer offer Swedish portion close period, the that higher to us end value intended fairly we movements to announced our of have flows economy markets, moved since was May. cash U.S. in Equity
As strengthens for undisturbed offer, value further the price hope the the attractiveness share such, updated This and ownership. is prior for initial yet price we achieve PMI a the we shareholders. best to to full strong while with month the creation maintaining XX.X% final our transaction price, of to Swedish and premium to believe complete Match shareholders next
diluted and earnings, now revenues. volumes, our pro of HTU heat-not-burn resulted pro our in another notable robust regions. Turning growth were testament combustible combustibles, revenue volumes, across net share strengthening ahead organic in accelerated conditions. of ILUMA high growth category this quarterly drive close share adjusted continues margins plus despite to this and shipment showcasing QX Cigarette $X.XX, of essentially volumes XX% our launch continued, total volumes the net in With our brand current very total exceeding stable with operating Marlboro, we strong in markets. despite income of market continued its performance line delivered all-time headwinds. IQOS of resilience forma supported broad-based by excellent forma X%, to plus key and performance EPS In economic HTU quarter, and with with driven delivered growth in X%. performance the expectations, QX growth forecast, adjusted growth almost grew, portfolio robust a to with we the currency QX shipment pricing plus by IQOS’ to
including X.X% net QX basis, volumes in plus by to total on pro a for grew by Ukraine. PMI. and grew and by and revenues forma the by plus headline our now organically X.X% Pro Turning Russia total, X.X% numbers, X.X% forma
the revenues. per in IQOS in step lower net a pricing. combustible plus This total total mix unit up pro on reflects Our grew forma X.X% sales and plus of a by our revenue basis weight and despite by in increasing organic device X.X%
a points declined with pro margin by XXX basis and XX income forma consistent on operating points adjusted organically expectations. QX our total, Our basis basis by in
Ukraine currency-neutral enabled investments in Ukraine, and this our war guidance deliver supply recovery inflationary diluted costs, communicated, increasing initially outperform Russia chain ILUMA ongoing representing growth. due currency the Including diluted global delivered of to impact and EPS Despite to launching our adjusted currency-neutral As we the $X.XX, device headwinds, in previous unit to the reflects including notably forma strong higher unfavorable of pressures. growth previously volumes, adjusted $X.XX. and in the X.X% of including pro of disruption, us EPS cost $X.XX, top-line efficiencies these
track IQOS a plus X.X% third our robust supported quarter, year-to-date. forma the combined markets delivery strong of our volume XX% recovery reflecting putting ambition reach total, a growth revenue highlight and of in our organic X.X%, year-to-date over business Our excellent XXXX. continued of pro an with net around of to by on comparison. XX% strong forma plus net Smoke-free would combustible against pricing, HX, for up pandemic-affected growth the revenues pro made the of again strong many performance, I and us
over a by $X.XX; to savings by points reinvest billion $XXX and billion on XXXX-XXXX. organically and the grew driven pressures. us forma inflationary deliver of diluted in the pro increasing total QX. an savings million XXX factors plus delivered, Our over year-to-date to income operating to EPS by adjusted a mentioned $X.X previously. Year-to-date in This of forma We by excellent $X to allows currency-neutral in mitigate performance. basis, $X.XX been track on basis X.X% X.X% margin cost business plus basis pro already have remain contracted gross on including
to year turn forma pro let’s the full outlook. Now,
and X% X% are Given our revising in the to growth to combustibles, IQOS shipment robust organic to volumes, total top-line growth of X% forecasts revenues. in X.X% net continued and in we growth upwards trends
adjusted outlook While margin third in the this our of facing mid-single-digit forecast. reflected other are inflationary the many is companies remained world in OI very top-line and remains updated our forces like global we in strong, in cost Inflation our quarter. significant economy, goods
are arrangements, certain However, transportation as notably pressures inflationary wages, renew we and growing pricing energy, direct costs. for materials,
in markets an the and in higher consumables initial negative XX growth months of of of In first the to activation. both XX of and launch the very increased addition, weight has given margin other the and strong device cost the ILUMA Japan impact, consumables,
As in the chain number Russia, in impact means has HTU supply of from global combination million demand, strong cancelling $XXX reduced air freight. induction increase the fully a use optimized. additional production productivity of and an our not mentioned resulted significant including chain is of a in and supply impact the costs, previously, disruption of approximate This
strong euro impact. and expect to $X.XX translates now estimated year. adjusted margin, prior further adjusted slide rates, with and in reflecting adjusted we rebound OI organic forma diluted we partly forma XXXX. margin higher yen. investments the for continue operating while of of top-line result, to in change is income detail expectations, forecasting the pro adjusted less QX There full prevailing momentum forecast EPS pro a estimated to slightly are This unfavorable the to into forma than $X.XX, a expected, to forecast currency expansion we EPS for a XX% As in notably year, is our commercial due with including the flat margin our an Despite continue previously the at XX% negative of to on diluted to pro $X.XX a impact Japanese rate growth exchange appendix this
year of For $X, Ukraine, we diluted Russia adjusted from assumes full almost currency $X.XX a estimated contribution and which total an PMI, EPS expect including unfavorable impact.
production production of the Russia we and accelerate I success cancellation to given our of referenced, TEREA just induction continued are the in of working Lastly, ILUMA further consumables.
capacity and and we the availability As inefficiencies to we transition limits on convert incur HTUs. certain ILUMA blade induction, from of
availability. possible impact where levels consumer any inventory our optimizing are We to minimize on
updating are shipment factors on year. constraint billion HTU these However, a our volume our to shipments units and XX XX we to are for the billion forecast
their supply growing capacity challenges trends remain to volumes recent are sequentially accelerate further exceptional, HTU is XX% while cash shown in-market growth QX. Consumer expected QX, business The our Importantly, also the years. a short-term in of as to to over this sales through offtake and of dynamic. generation remains strong compared
and forecast one-off and benefitted strong. X.X% flattered $XX.X and flow of Today flow somewhat certain capital flow XXXX billion This by means to an by factors an of year, cash a estimated XXXX; headwind XXXX. at we billion a representing of was the cash expense $X.X sheet impacts of currency for the in on the from of and delivered Our we of $X.X improvements. XXXX around We reconfirm flows balance in remain despite XXXX excellent of timing $X.X working expect $X.X billion. Cash growth $XX.X billion which operating cash deliver over further billion our operating full year-to-date, currency-neutral billion around flow cash basis.
would net demonstrates U.S. and, the forecast than I more on underlying offset our including against debt, impact a positive overlays. This that to to this earnings our financing serves impact on year. given dollar euros, XXXX strength exceptional growth has strong like a XX% our in adjusted times of in delivery EBITDA also However, now highlight X.X is that derivative sheet, combined since down on contributed XXXX, invest December our the $X.X below ability XX-month of to highlights with a maintain is in our basis. net our growth debt reduction a generation, business. balance This to strong billion cash rolling pay and debt, our which
consecutive dividend In addition, annualized with XXth to increased commitment recently shareholders. to long-term for we year, our line in return our cash the
our Turning back to results.
increased deliver grew by total X.X% us total volumes PMI forma for XX.X% a for the Pro Our third by both volume growth quarter year-to-date. year forma second pro QX basis. to XX.X% forma and comfortably consecutive year-to-date, HTU and on shipment putting track pro the total volumes and on X.X% for shipment
QX been Japan, While EU year-to-date, volatile this growth performance and current growth robust the with Region, dynamics, reflecting in XX.X% has markets. XX.X% our strong and shipments Middle-Income the HTU with Low consistently been more have supply year in IMS chain and
IMS we growth mentioned, of QX. expect acceleration I a As in further
Focusing now essentially shipment net delivered stable our in of pro pro robust and X.X% volume. on QX growth forma organic revenue forma combustibles, portfolio
to in X%. Philippines, pro Australia, inflationary Our forma Germany, the from to variance This adjust X.X% accelerated the from we and as for since XXXX. QX environment. around pricing the year We expect reflects pricing full a time first to QX quarterly positive notable now and contributions progressively Indonesia be
cigarette consumer premium by Our share This in by PMI. impressive category of challenging X.X represents the points X% brand. With pro Marlboro, increased was where performance this environment, from a leading cigarette position volumes world’s supported a by year-to-date. the an almost forma grew total for
to of to switching products in Despite X.X of target X.X over IQOS stable a maximize pro Japan, cannibalization. and leadership continued adult category stable share notable start the the HTUs supported positive despite contributions as points We the sequential of achievement with the share deployment excluding combustibles in has in to again and present, X.X is This The by positions gain share deliver year Poland. many portfolio, of combustibles providing IQOS Our grew in stable remained us growth their continue from to share increasing the combination time. points share, forma quarter. and increasing nicotine time, high-quality where Ukraine. X-tier leading captured PMI our growth with of Italy, the category heat-not-burn in HTU QX market alternatives and IQOS impact the innovative of X.X% expanding markets largest an total position and sequentially share strengthened in we to to at cigarettes. gains since helps range a share the of of of with points brand a around in competition is second remarkable XX% year-to-date, Indonesia, smokers smoke-free growing and a and over Russia QX record third markets,
X.X around of as and million we September were on year-to-date. XXth, now of and excluding in estimate IQOS performance, users Focusing This IQOS million QX million XX.X growth users Russia Ukraine. there X.X reflects approximately
robust mobility. this very high the As a user locations COVID on benefited to context, pro growth third growth relaxation quarter was slide, catch-up the shown and historical right-hand million of retail restrictions noting in The a year experiences side quarter QX forma of seasonal the from due following growth in that of effect XXXX this of on each slower the X.X factors. typically
smoke-free we of performance almost XX%. comprised a net growth acceleration markets of user year-to-date, in of in revenues quarter above way our This XX% revenues be fourth strong towards number well regional smoke-free the In shows XXXX. to Region, expect EU ambition the Importantly, a clearly the with net by predominantly XXXX.
I points last to QX year importantly, compared HTU X.X average. on sequential quarter continued to moving IMS X.X-point four-quarter volume. sequentially also and total of increase, Our notably the to Most a seasonality units adjusted strong X.X EU usual of given billion cigarette the reach high industry market. performance X.X% increased highlight by grow volumes reached a is would share which of the and HTU combustible a third record
with regulation share. in We countries of recent increase EU, the frameworks expect city volume smoke-free IMS to products, number the appendix adopting growth share legislation a are of market increasing With corresponding in key clear additional to Romania. in encouraged the data. with multi-year for to QX, refer in market differentiation such continue and regard the by fiscal Please we as
a We expect similar the to on be by Excise proposal hope EU approach. published Directive Tobacco the and year-end for
XX approval Directive unanimous member will EU support a the reminder, Excise As Tobacco require for by all states.
to the performance the markets switching HTU now both Now, volume Spain with EU IMS QX region. majority user of let’s ILUMA growth, the category drive and sequential focus continues acquisition, quarter markets. sales existing and of the on both exit experienced Switzerland. in both of ILUMA accelerated of offtake of strong users In another TEREA clear in growth volume in
year share In promising to launched quarter the Portugal tobacco for our also initial ILUMA prior by introduced at X.X total We brands this June the points end and Greece with results the HTU product in of to versus month. the earlier increased adjusted Japan, XX.X%.
to this grew QX saw seasonality, sequential a sequential X.X its IQOS with consumer high reach continued achievement. growth. year in category was X.X-point notable as driven retention anniversary excellent Japan the strong quarter units of national to in continues one-third sequentially first satisfaction, four-quarter an growth exhibit the This ILUMA in heat-not-burn such due and billion moving Tokyo. making and the IQOS EU, and The the increase increasingly rates. share now ILUMA As Japan, by IMS average. over represents total year’s this due to growth the launch tobacco decline cities conversion, September key of to IQOS driving combustible impressive celebrated optical on of of performance again in a last a record
coming both segment. in brand to grow HTUs of in SENTIA QX April record and reaching premium-priced in consumer high, the share the and Our acquisition rapidly second largest position see share, an runway and grown mainstream We in Japan, continued strengthened with price in driving QX largest over strongly launch as offtake growth over their a TEREA exited the the XX% long brand to a quarters. expansion mid-July, XX.X%. nicotine and initial Japan in of have also HTU HTUs RRP continue national Encouragingly, since offtake exit
in forma In which Middle-Income to growth Company’s growth developed continue and countries, QX. in Low around addition the to see markets drove strong HTU IQOS XX% of very we in gains promising pro
Given in the continued, and the IMS this large of forma size year of Strong points share progress. these premium reflects the Further stage by success QX growth of the found pro markets, quarter the share and where X%. positioning portfolio relatively IQOS Lebanon, Egypt, impact the the outstanding with considering grew to seasonality. early the commercialization, many in X.X% X.X can Cairo existing versus progress in our of prior represents and HTU notable brands volumes performance, offtake data XX%, robust across X in increased be is This to appendix. city where a key Beirut approaching offtake in QX, markets, share points of in
government health will warnings, We of and regulatory to encouraged the adult for testing regulated to sale guided with the positive communication and Philippines that in developments established be product law point product alternatives. permitted will where better different and passed products the trials, smokers or new switching combustible recent be Smoke-free products. also tobacco differentiating support separately, clearly noncombustible a by of activities rules are
affordable product. smoke-free reduced local especially middle-income relevant our is compromising that from proposition, taste simple, for can without innovation to preferences which new heat-not-burn a device development of the is It and latest the and the risk profile low- addition, markets. cater In pipeline a is convenient, on
consumer of smoke-free We expand in the during products pilot we and Philippines to further are portfolio Colombia quarter, fourth city different serve the needs. launches our planning as
eco-design the manage waste. to environmental a our critical of pillar part our products in innovate, sustainability to circularity, forms principles, is is minimize continue impact our of scheme. compensation integrate executive post-consumer and As reflected we which Addressing index our efforts of sustainability sustainability through and strategy, it’s to key and
Our dedicated approach published microsite on waste and consumables, campaign packaging month is report, a studies pmi.com. reduce via and devices last to related in covered cigarettes, case to and a RRP available
cleanup For example, with towards for our X of and million our during I markets performance world. worldwide. by anti-littering over refreshed shipment for recognized cumulative be initiatives are we repaired. September more than in of ESG programs the least proud XX,XXX continues stakeholders Moreover, volumes progressing at or be joined of to around having cigarettes more aspirations to covered our devices from which than place markets XX well smoke-free am XXXX XX%
XXXX Our Transformation Strategy Officer, our for for Sustainability nominated at Business Jennifer CSO Low-Carbon World Plan recently Transition Sustainability and nominated prizes, Motles, were and was year our of the sustainability Awards. the Chief
to of control have largest the today, smoke-free of that soon the now announce we States, world’s will perhaps IQOS, world’s to impactful most the smoke-free news market. delighted are product, full leading Moving in the United we
previously the to ITC in find IQOS import the its now As decision PMI’s a goal. as an U.S., always potential communicated, best path to into quickly achieves to the of we find I have report positions that reached last U.S., prohibiting the the forward. discussions in realize we Altria IQOS am that that full following outcome priority with best solution this excited to possible. as year been been has have
the IQOS full Let XX, U.S., will allowing users. directly me of product, critically briefly commercialization with engage control XXXX, adult the summarizing to sell the agreement. of distribute key in the and start have and by PMI us From terms tobacco the over April
agreement certainty held as pay excellent full the legal the believe As to been uncertain and represents cash stretching with agreement, It PMI’s have financial path already process the $X.X a market around a severely of estimated driving what international will the to that this provides of by XXXX, of U.S., is world’s is $X and success. business, could product’s protracted in avoiding development a the accessible and IQOS unencumbered attractive across total biggest category IQOS. of at we market retail the clear near-term growing with retail markets commercializing previous to leading part to From consideration IQOS solution billion potentially combined, heat-not-burn have rapid shareholders, value billion growth. revenue back this achieved would with our Altria. commitment provides The scale backing by the excluding annual strategic XXXX, world’s product, of wide We agreement nicotine and the a net is smoke-free a value to all standing around XX% its is international its range of value. having of in growth markets. The China. already start U.S. remarkable a created smoke-free the
is to a leading have elsewhere. already and smoke-free given fully credible at to offers, portfolio Moreover, MRTP encouraging smokers U.S. American about just products we particularly alternatives IQOS The that smoke-free smokers to there understanding U.S. it our demand to plans smoke-free to away from adult before from IQOS switching is particularly awareness our smoke-free product cigarettes. core ample opportunity build had spoken for be the as adult of limited We authorizations. U.S. have future, of for are very smoker expect bring current something our the the given in true U.S. clear In the adult success IQOS opportunities cigarettes. for and is
in switching Tobacco product markets XX We Risk across with only strong, launches IQOS in rapidly market inhalable are U.S., have bring and regions, full-scale to product as by experience Authorization national invest the to over rates. smoke-free cities Modified starting IQOS’s is from the the IQOS that a to Drug tried received We to a with know high appeal full to key from have smokers nicotine to behind Administration. our who remains the and Product to worldwide at adult demonstrated progress ready it scale penetration. U.S. Food plan
to go achieved for U.S. a IQOS double-digit a product the smokers. substantial, by adult XXXX category cigarettes as HTUs We shares few and is American XX% the to among believe of all potential very by European, to the invest smoker drive in share awareness number The potential varying and strong trial demographic taste have a markets, volume behind illustrated national We achievable, across just profiles build and Asian, and commitment in is with other of much true of years a further. preferences. with
on in U.S. the industry cigarettes over X estimate than Importantly, times than average profit the greater compelling. the unit is total Altria paid market the payback years profitable with billion, investment U.S. the next and more return for the highly pool for tobacco on PMI few at on looks the IQOS We attractive. U.S. very over margins average, consideration to $XX
have As This in federal we do basis U.S., reflects cigarettes with a over cigarette in also system the heated clear opportunity legacy products business no limited presenting time. differentiation states, not the the at handful a and for opportunity a of incremental. additional a tobacco only is purely a tax excise differentials versus level, thus on current
for manufacturing our we file and XXXX. submissions, in plan U.S., including already for IQOS in for prepare in are advanced the HX to for PMTA We important ILUMA domestic regulatory a where as plans IQOS we
available Altria of half XXXX. first of year for the our domestic supply, full will PMI April up current to target until resumption the assumes commercial be in responsibility IQOS we previously, under next which mentioned As arrangement
combination certain Match distribution provide Swedish sales would Our capabilities. proposed and with U.S.
However, model smokers, on forward of our rest for have IQOS failure Indeed, the center distribution. the clear critical IQOS adult most converting the parts path of commercial in portfolio. and the rather a than we smoke-free case of
the concrete to autonomously plans building In U.S. landscape, also distribution to fully leading smoke-free fundamental successful roll-out our proceed U.S. and addition, Match therefore sales agreement today’s managed the introduction is has over up ensure XXXX, unlock capabilities smoke-free fail. other retail we of distribution to next in market. controlled and XX order clear with and and IQOS established the believe route-to-market. have April months Swedish an should the a to offer products U.S. in a Indeed, We
we the have dollar fastest and internationally. we previously, category largest to tobacco shared growing As expect heated in the terms remain
enjoy, a and, we To deliver products unintended that today’s experience low year the the despite headwinds, with third-quarter conclude While extent, the in nicotine tobacco IQOS diluted the and volume performance, growth basis. a pro IMS higher e-vapor IQOS the with and emerging reflecting was business pouch excellent for strong on shipment plans momentum in conversion the another use. VEEBA by continued our replicating know and our and smoke-free both XXXX. and ILUMA, markets. adjusted currency-neutral smokers double-digit paved further presentation, to excellent some broad-based heated and and have EPS Japan, U.S., innovation, year-to-date launches for we Most strong very rich impressive of comes We closest EU of forma categories in smoke-free growth to challenging pipeline that to remain region, of lesser fourth excited delivered ILUMA the way quarter results the performance, expect of in promising and
as growth bottom-line to delivered as recent from geographies. over as exceptional continue of across R&D a engine, years. remains demonstrated growth accelerate top- behind programs, opportunities investment and in and the our digital categories growth, compelling, number commercial We by for long-term well and The return such investments
combustible in likely to chain products, environment, to the is and volumes. pressure from pricing organic net in accelerated to addition quarters. smoke-free inflation growth with the business coming and inflationary perform In essentially in Despite inefficiencies growth stable well, our forma pro continues supply current shipment temporary continue margin revenue
remain and Importantly, confidence. growth look strong we our with fundamentals underlying forward
to near-term the secured U.S. portfolio. for the our substantial backbone access forming have opportunity for We IQOS, our broader also introducing smoke-free
have advancing or without through finally, the downs now increased dividend year every are economic the company, cycles. and public at scale and And a on currency to plans of ups We launch we Match. our Swedish with as
materials All beyond now has than smokefreeoffer.com. announced. been more are advance as our Swedish that be to Jacek we answer towards on can committed what are the able offer happy ambition be website, on And become comment to please to predominantly offer we our question-and-answer XXXX. Thank we I, shareholders, not questions. for returning steadfastly and Match your to related cash to We to to you. the And session, note before smoke-free by found continue we the start
