you, Thank Jacek.
excellent operating despite by currency driven expanding difficult XXXX top innovative very business Our generated our and and the strength bottom-line and growth smoke-free a environment, portfolio headwinds. of
reflect for of IQOS, total full-year PMI, in despite many the X.X% pandemic a plus This HX. plus organically and and by Our the accounting net hyper-inflationary strength notably grew pricing of in combustibles by excluding Ukraine the continued Russia affected revenues recovery against accelerating comparison, of impact in Turkey. markets X.X% and
X% of devices our both excluding accounted Russia for and and IQOS smoke-free net Ukraine. including revenue, full-year approximately
revenue of X.X% combustible by and unit. net the and mix tobacco excluding unit at of volumes Our X%, higher This Ukraine by per and total. proportion net impact our plus increasing pricing unit revenue organically, HTUs was X% Ukraine driven X.X% of in plus Russia overall overall excluding per grew plus plus in heated Russia and and positive an
will organically These mitigated headwinds by to which and due cost-saving. growth ongoing by Our operating of back were contracted and by XXXX IQOS, XX basis-points margin a come in the to. excluding partially XX total of and headwinds, I Ukraine, income Russia basis-points, pricing number
pressures, in delivered $X we diluted to This the million, two our target XXXX, billion mitigate Despite with pressures. excellent EPS cost-efficiency program. $X.X and first to over $XXX margin of us plus cost and recent In growth billion years and over puts of our well growth of on of XXXX inflationary diligent $X.XX, gross us saving excluding XXXX, Russia exceed XX.X% currency-neutral enabled Ukraine. our management top-line deliver adjusted to track
currency small for the consolidated Match and unfavorable cost of of days results. a Swedish includes XX of contribution financing from This $X.XX net
delivered we adjusted PMI, of total diluted $X.XX. For EPS
delivered QX and the year. strong net to of We X.X%, excluding growth revenue also organic plus We had excellent Ukraine. finish a Russia
robust pricing. and performance IQOS strong continued combustible reflecting Again,
basis-points, comparison. to expanded QX excluding Russia margin operating organically favorable a mainly XX and by Our Ukraine due income
On including timing comparison the of organic in impact total the a Ukraine margin shipment basis, Russia. PMI were flat and challenging in
total XX.X% Russia Fourth in Ukraine $X.XX, EPS to to grew $X.XX, performance. adjusted excluding quarter currency-neutral and and diluted by plus excellent XX.X% an plus
our on discussing I an and Before businesses. would XXXX our to update guidance, Ukraine provide Russia like
to these In for I regulatory December divestment the tremendous challenging extremely complex, continue difficult especially business times. XXXX would our Russia, given We environment thank efforts personally for during employees their secure become recent to to in continuity our support has developments. Ukraine. increasingly like and them
our to now clarity investors we will extent the in and Russia full outlook more provide on reporting. of and Ukraine both our XXXX include To business,
Now and growth plus of another from X% very strong a revenue to of progress year by step-up net supported we rapid in expect organic deliver turning XXXX the pricing combustible plus to to X.X%, IQOS. outlook,
excludes the Swedish large would for revenues net represent deliver of consecutive into strong the X% teens growth Including organic our grow Match third Match, impact we performance. currency-neutral expect of Swedish the to above as its continue and the plus the reported This to majority year. year top-line of business
XXX IQOS growing excellent momentum total the HTU to plus expect increase of presence shipment key XX% and to XX% HTU representing volume markets. We volumes, the our billion growth on between by billion growth. our basis XXX across supported We forecast plus ILUMA PMI
an investment compared rate no This total decision given XXXX our significant in progress Russia restrict in growth an of innovation. PMI and despite acceleration the to reflects expectation to
supply-chain by initial pace disruption markets. up the the launch ILUMA of previously, also mentioned has outstanding launches constrained been take in and As
the to constraint progressively these We half as more expect through improve we first to geographies. gradually roll-out
revenue with revenues. an of HTU less from growth have distortion volume year device We with this aligned expect to organic smoke-free progression the net growth rate
at to of in this XX% Including revenues compared $XX to total net and and billion expect to we net in Swedish around smoke-free revenue Match deliver billion $XX.X year. approach constant-currency, XXXX PMI
facing While our pressure intensifying topline investment, come back outlook specific factors to number a from significant other inflationary in and many the which companies, like shortly. margin will environment I of we to global addition transitory strong, are is very
EPS organically. Swedish to to As plus of from growth of operating a basis-points full X% plus income This result, interest related diluted margin we expect net expense. Accordingly, X%. forecast XX our includes Match we contribution adjusted positive adjusted year's contract a the currency-neutral between to XXX
prevailing cost the excise ruling does Germany investments. any of an as $X.XX forecast effective into on the existing factor at $X.XX, the translate on heated tax of planned this in is debt including tobacco regarding However, potential This the XXXX. of rates. of non-Swedish favorable EPS product interest benefit notably, by currency court not legality in surcharge adjusted Match on increased Germany. This $X.XX and to diluted offset our unfavorable range
and continue surcharge outlook. to account the for excise in results our We
XXXX obligation the our around pay around would three our EPS suspended. net to by our favorable adjusted forecast plus However, payment by If plus the to difference revenue is to thereby forecasted currency-neutral XX% excise increasing and growth diluted growth increase to XX%. currently point, the range X% surcharge
we the our range. forecast flow would of operating upper towards scenario, move expect half this In would our cash
expect cigarettes of X%. our China excluding a X% and total we the end expect U.S. minus year. assumptions There heated to other international number decline volumes the minus underpinning outlook, units industry and to tobacco towards are the of by We judgment a of
to growth. the year to Given the flat growth consecutive and third volume in which category, product our expect we leadership and shipment target represent be to of of would share smoke-free PMI total the X%, plus gain
to compared to combustible around realized environment, basis inflationary accelerate plus seek current our the given the on in X% assume we category, the plus to we combustible XXXX. will maintain an While X% share of pricing organic
also Match ILUMA billion investment $X.X full-year billion capital platform around expenditure expect to and as We behind portfolio. reflecting our Swedish compared increased of XXXX, including $X.X in smoke-free
factors now come me our back to the various impacting margins. Let
In XXXX, gross contracted total XXX PMI by basis points margin organically.
pressures ILUMA and inflationary of need a came air-freight. were from the transitory growing use and supply-chain factors the the of While to disruption largest the combination growth as drag, rapid impact such
ILUMA for drove positive are device and Japan accelerated market. existing sales conversion. and in user other from full replacement acquisition, launch retention Such devices
margin-dilutive devices However, on and is more year IQOS we from continue temporary this as likely are to basis, blade. a dynamic consumers markets roll upgrade and this out to
including XXXX. ILUMA devices weight in overall higher played this initially The the cost meant a impact business that also role of and our of was margin-dilutive consumable heat-not-burn and
Importantly, points higher net around for average revenue on margin the cigarettes on unit. gross HTUs than per percentage XX higher remain
in This mix a driver had XXX this through XXXX. business margin basis-point plus the our in HTU volume is and fundamental long-term impact a positive favorable growing
margin of to other long-term two pricing continued favorably. drivers productivities Our contribute key also and
margin leverage margin operating at to the of by primarily effect. and Gross level net basis-points SG&A headwinds which revenues, cost were comparison operating by XXX declined due income mitigated cost-efficiency,
air The inflation. inflationary and as while cost salaries in exceptional is quite energy lower combustible serve margin XXXX cost face primarily is to business tow, and acceleration picture now leaf, gross pressure, mitigate this for An pricing increase. for to the will acetate freight due cigarette increased this our different will COGS
built time projections. is However, lag a into our
be cost net measured per increase favorable the volumes. XXXX while is planned volume ILUMA device for more of impact a to at Importantly, efficiencies margin our increased also heat-not-burn the HTU impact higher inflation positive in and business unit, expected to revenue headwind due of IQOS, is
we offset approach increasingly to business, underlying in with an this year to as our IQOS impact strength combustible will sufficient lower Overall, expect we heat-not-burn combined have organic XXXX. margin pricing positive visible from a gross be decline XXXX, inflation cost compared and to not however, for last
where XXXX of included healthcare are with of development in around including clinical $XXX to capability broadly in the U.S., SG&A preparing drive cost would split wellness include is incremental and Also between future organization IQOS a even commercialization million investments and for launch growth, product ILUMA. our the investment the trials. and we
with addition limited inflation, mean an to line SG&A now growth few margin impacts. phasing. net this A with in XXXX revenue In increase is more likely words cost on
expect the in and XXXX airfreight the comparison first weighted the to We progressive pressures challenging be particularly QX decrease margin to cost year. given a throughout half,
bottom and weighted. In line addition, rollout of HX we wait acquisition know saving, be with shipment a Combined to cost our to short expect for are to delivery we the investment lead period launch. expected slower XXXX the ILUMA heavily be loaded the and can as front and of to user that timing top consumer
challenging first and Indeed, impact ILUMA of the low-single XX expect volume be we topline organic margin. and to accordingly billion with most Shipment HTU timing expect are to launch shipment digit XX pronounced HTUs. and the around we growth soft be to expected quarter billion
with at prevailing adjusted EPS diluted also of impact face $X.XX of from a currency a We lower including war $X.XX, rates. We significantly $X.XX disruption. unfavorable related forecast to comparison
as we form transformation heated smoke-free unit headwinds improve ILUMA. expect margin in XXXX our as continue Importantly, pricing to on the driver margin-accretive and fundamental of approach and the we of optimization cost growth, relent tobacco
of a financing flow item generation operating basis. a representing cash include around billion certain We Our plus growth X% in favorable This timing strong. $X.X on cash of billion. XXXX flows $XX.X delivered remains currency-neutral
Given $X working an capital result. around this by and XXXX nonrecurring billion, benefited excellent item movement was
track prevailing forecast despite rates. working $XX of in benefits. $XX global around timing In higher of billion XXXX, on operating February put 'XX the XXXX This billion capital in due to we 'XX, our billion and $XX from to deliver the cash-flow then growth, us expected notable requirements one-off given inflation impact to target reversal at
in full-year adjusted times While result XX debt trailing Match net a months of is days for Match our Swedish contribution basis, which We growth Swedish on only to flow us clearly a this growth, reflects the X.X invest target deleveraging, EBITDA would ratio. combined innovation including to while on strong XX results, a our EBITDA cash of focus continuing allows lower with in robust business. and
our shareholders. is long commitment In unwavering and addition, line our cash dividend commitment to progressive in to return policy our term to with
and supporting XXXX Ukraine. total our to back Turning HTU of plus volume growth sales increased results, X.X%, XX.X% by both Russia around volume our in-market excluding and
of QX HTU timing and we of shipment for shipment lower by cigarette both excluding volume year, Japan, launches. in second very advance solid volume the performance, including grew Russia for the by shipment ILUMA and year in plus the and growth XX.X%, notably partly ILUMA Supported consecutive reflecting favorable earlier EU, total new the inventory replenishment following delivered in Ukraine. in
Focusing now on combustibles.
pricing to full-year as to excluding inflationary adjust the organic robust in yielded and Germany, of organic continue X.X%, for Our impact Ukraine. line the hyperinflationary notable increased of This plus the from accounting. resulted pricing in excluding Turkey, Combustible and the portfolio HX Ukraine expectation with pricing delivered in net contribution Philippines with revenue despite full-year Russia our X.X% we plus growth and Russia QX of and environment.
includes declines XXXX, excluding share Russia share by of the sequential our increased X.X every pandemic. quarter and category cigarette This XXXX, in In following plus and Ukraine XXXX XXXX. exacerbated the points of percentage in by category growth
on IQOS the impact percentage share plus growth. resilient segment extremely pressure and despite of Marlboro point remains with disposable X.X cannibalization of income
down trading, by meaningful Russia increased points the X.X In we in seen have addition, excluding Ukraine. any yet price our percentage plus low acceleration and while not share in segment
enabler is a to key alternative. leadership As our Jacek switching in earlier, accelerating smokers better the cigarette mentioned in category maintaining
IQOS the an from Japan of X.X share cigarette contribution combined and of excluding robust overall Our XXXX, Ukraine, Russia in market-share with gain growth delivered Egypt, notable Poland. and plus point Italy, with
reached is the PMI in the present largest of heated a towards where share nicotine IQOS X.X% and in position strengthen record-high becoming continue QX. unit to in tobacco XXXX position two markets the number with brand
excluding on Ukraine. user and an million December IQOS there Russia XXst, as focusing estimated IQOS of Now user were growth, XX.X
of X.X for This growth year. plus reflect the full around million
For we Consistent with lower commercial was estimate to from almost of user users acquisition of total growth November certain XX disclosures, of our slower launch in ILUMA for IQOS higher-than-expected IQOS due brand activity markets. as recent were million there PMI, in in October year-end. comments impact and product anticipation in and the key
continued However, for quarter. December plus we growth of delivering saw robust million in $X.X as a strong ILUMA launches the rebound user
launched This actually our across confidence supporting heat-not-burn in expectation and represent our Portugal, with was to Korea, and growth volume in eight We position now Czech its driving in the ILUMA close as to South including bringing half continues XXXX total ILUMA new QX, total the and launched of volume. we share strong markets to deployed. with category. forward is than be market markets more our Republic, ILUMA XX to Italy, initial HTU look
ILUMA promoter more delivers increased IQOS. its rate superior market to by conversion points than on consumer higher scores different average which as XX by and evidenced net a experience across compared archetypes
differ While share market both Arab doubled the and offtake acceleration rate by has in the Emirates of United recently Switzerland launched launch. since almost more
and second earlier, should overtime in mentioned the benefit I starting bring us ILUMA optimization cost as half of the of XXXX. of to down allow Importantly, scale the
net year. now Focusing revenue the on European smoke-free for the exceeded the XX% region Union where of full
from high volume HTU X.X% sequentially points the a units record moving billion factor. modest quarter effect four-quarter on industry timing grow continue and with increased a volumes reached and cigarette share reach of X.X fourth IMS X.X by average. of total plus to Our flattering HTU to
well close driving increasingly with including total heat-not-burn XX% with Vilnius Japan cities over with the of tobacco In now Athens many reflects IQOS represents to This across its share, key over growth as Rome XX%. category success and and as markets XX%
the with for In tobacco QX, increased brands our XX.X% plus total XX%. surpassing points offtake to share by adjusted HTU share Tokyo in X.X
continued IQOS X.X consumable of to number average to of the X.X remarkable IMS million Our strong sequentially again as results. grew billion Japanese four-quarter deliver two-tier a moving consumers. record-high a portfolio crossed units on users reach adult a
strong reached countries, where where In middle-income and grew Russia promising This cities. many markets, continue including almost and surpassed Egypt X% very growth Ukraine. offtake QX XXXX, excluding performance share robust In success XX% exit Malaysia offtake and in Cairo addition reflects share HTU our we both in across to Urban market. Bulgaria capital developed by to IQOS shipments gain XX% in low see
move purposes, now Match year profile which the strongly combination XXth for Please this will our to Swedish Let's on in note be November Match was accretive that and financial finished years. September when my on the over housekeeping to belief XXth further on Financial are and information our consolidated PMI's available based growth that confirming coming it statements. through Swedish comments margin publicly Results from
Match come growth performed XXXX moist following Most with growing well category. income. within delivered strong the In excellent products, gaining a snuff to back share the point declining and operating phenomenal U.S. will Swedish impressive performance acquisition, on of adjusted and which net segment also ZYN other next was smoke-free I the revenue slide. one U.S. percentage of almost volumes
helped the grow, with inventory by robust challenging Match growth smoke-free ahead In The a to category continued business cigar market performance volume Swedish end increase delivered end and Scandinavia, a Sweden. year in albeit of share. tax movements in year trade excise overall January and to
XXXX from our results We the smoke-free pricing forward. results Swedish across reporting combined which included also with pleased going forward Match, category. to strong very are We look all positive
performance U.S. more let's ZYN's Now recent detail. in discuss
in reaching plus Excellent QX, volume with to sequentially compared prior and brand high. percentage pouch offerings. point growth plus and the the quarterly by shipment points compared year, number category percentage volume further despite competitive of a one discounting record one clear the continued by strengthening share third in heavy as quarter grew premium progress to continues its XX% XX% position less X.X from nicotine ZYN XXXX
high remains positioning year. share ZYN and Importantly very XXXX at equity. retail brand for be a value to its XX.X%, highlighting strong promises premium exciting
family employee and champion. to to towards look We vision value Swedish And into create we global future. nicotine accelerate the to together welcomed will create we smoke-free leading have portfolio of our thrilled a Match shared oral the are as smoke-free work PMI, we will
adult markets In accelerated particular, present a alternative. switching smoker in ZYN IQOS together better and bringing significant to drive both U.S. international the in growth to opportunity and and of
we a performance strong operation. business expect Match from and well-run successful continued Swedish existing As
focus this will further supporting key year A in strong in the growth driving be and U.S.
preparing leveraging now nicotine for PMI's expansion In rich and extensive Match commercial addition, Swedish we portfolio smoke-free of product infrastructure. international are the pouches
distribution commercial capabilities will parallel, Swedish Match launch In XXXX. of IQOS be for U.S. in actively and we the
Moving to sustainability.
increasing are we our strategies a momentum. company As transform our advancing hand-to-hand vision and Match Swedish and PMI have and sustainability with business shared values.
us transforming achieving good and for benefit helps smoke-free maximize products. further of cigarettes make combination to purpose, The obsolete accelerate the towards our
the goal best labor, inclusive for class more employees. aligned of and we seek as for in our child footprint is our address Our provide environmental a impact and performance reduce empowered ESG all environment carbon our working to product, eradicate
detailing report and standalone a published we December, ambitions. water our new In biodiversity
no For positive achieve nature by ecosystem net value by and a aim our on net to chain connected contribute loss biodiversity XXXX. XXXX we to to on impact towards low
by XXXX. this positive impact on Triple to For which and a we resources score. awarded by strategic impact a to that solutions climate for water change contribute the XXXX Water share on forest disclosures, Stewardship XX,XXX towards third water been I aim on towards scale also nearly A. proud prestigious only and CDP water consecutive we XX positive resources companies scored have received year of their CDP's security am
I excited XXXX in for that am the included we running. the Index GenderEquality addition Bloomberg to In third year are share
Jacek turn now I'll to remarks. concluding back for