welcome James, you, everyone. Thank and
I performance expectations, momentum QX underlying strong and exceeded IQOS, to am ZYN with combustible from report our our business. pleased that
year. forward to factors confidence the In February, As quarter confluence be this earnings with remainder year our business weakest context, the a this and impacting transitory due look mentioned to of results in we of our we to top- the bottom-line. at full-year our expected and of robust delivered the
almost XX% crossing increasing factors markets made total number up timing an on impact XX% net Smoke-free with adverse threshold. the despite shipments, revenues of PMI, the HTU of of
version traction and smokers both geographies, launched, across excellent existing IQOS both share strong deliver and and with continues IQOS growth user ILUMA’s its with Where blade ILUMA. users legal-age the to in and in first accelerated is demonstrating progress share quarters. especially the market is innovation. dynamism notable ILUMA’s growth launch of has the where recent importance of Japan, boosting ongoing our growth,
growth. Swedish deliver helped to growth with results, compared Match ZYN’s across a revenue the organic range delivered from of volume stand-out XXXX. robust pricing quarter net accelerated combustibles, shipment markets performance impressive first a to In U.S. XX% of
start the well deliver encouraging to the for XXXX strong and growth remainder an Following year, up we including of set excellent performance bottom-line year. to the top- in are
in headline the organic organic net revenues IQOS very continued Turning strong of our X.X% which growth figure year Match, of with ZYN. numbers, growth against top-line the pricing of partially include strength of to This ex-currency X%. movements, by come was XX% robust organic I QX excellent prior reflects step-up This back led Swedish by does but expected offset to. saw and quarter growth a inventory HTU not will a the
by around revenues by Our reported grew X%, net forma adjusted X.X%, currency-neutral total revenues also combined pro net currency. excluding increasing with
pricing with combustible of back momentarily. total by Our partially per Japan dynamics grew which by unit net X.X% strong HTU revenue X.X% will in come to Germany, offset and organic I
delivered and We of $X.XX, operations, Compared on to above Match favorable existing EPS underlying reflects and chain quarter, X.X%. by EPS one-off margin inflation, or timing from headwinds number inefficiencies with year high from phasing interest This Swedish excellent our a diluted contracted supply expectations. strong well flagged a a our as prior previous record QX performance, delivery adjusted our factors of costs. adjusted diluted previously, and accentuated
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which point on for and a await by top-line, a This of increase Japan, The drag XXXX from later negative was two larger we in to was the also and excluding impact tax reflecting the partly a Germany transition HTUs, HTU Japan. contributed of X.X excise court the increase and HTU were including growth, of year. excise X.X ruling pricing, in and a number Germany, half. Japan our of points positive Germany pricing second October the ILUMA offset impact a Combustible HTU and phase out full tax quarter In we XXXX this of some to this expect markets.
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and both The accelerate positive smoke-free this as powerful pricing growth positive our growth HTUs, the did for mix shift volume year, expect and as align growth. with offtake also XXXX. revenue organic of shipment and impact trends are growth, net mix overall HTU in of transformation drivers We to they closely more
margin the peak at and by expected, As quarter impacted first adjusted gross level. headwinds was both operating income the margin
volume, points pricing, inflation, and savings. to impact net percentage due margin of gross by Our the X.X mix productivity contracted COGS
progress positive We HTU productivities inflation to year. of ultimately category increasingly elements as expect the the outweigh mix through we and and compensate pricing, favorable
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in geographic X.X dissipate. ILUMA-related exceptional to these the continue inventory cost our be movements as full-year notably QX dynamics, impacted mix heat-not-burn in factors Europe, of business XXXX quarter. inventory movements, margin points and percentage for and HTUs Despite forecast the In gross we phasing impact addition, to our margin the specific by favorable of
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costs XXXX. ratio At around net XX% of our full-year similar a QX SG&A adjusted revenues, to the are at
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of in QX $XX to enabling deliver, almost mitigate with which continues ongoing program gross investment $XXX to realized efficiencies helping million were cost successful savings and of from SG&A. Our million inflation,
net the a margin growth of Importantly, we for revenue SG&A the year improvement. significant OI of level growth which to expect slow-down support remainder -- a in will rate the below
me brings the This for to XXXX. outlook
QX visibility supports performance on growth. full strong year robust Our
We targeted expect continue with HTU volume a acceleration to in progression, X.X% growth top-line organic shipment to X% versus XXXX.
majority detailed Swedish our in from unchanged, remind not other the As include for that remain this metrics press the the release, operating our you do year. assumptions morning’s and contribution we large of Match organic
forecast includes currencies by are an Egyptian of the Euro the weakness the depreciation significant mainly estimated year of $X.XX full updated adjusted of impacts cents. a well number the Pound. the diluted outweighed of Yen, other as XX Russian from Ruble $X.XX and Our Positive of EPS impact unfavorable currency Japanese to the estimated as and
add continues we in our range does to X% payments. would to growth expect tax to Germany, to contribution adjusted X EPS from This tax excise points and include not X% favorable to which currency-neutral diluted a ruling reflect around any potential XXXX related
interest modest expect to adjusted EPS to related a $XXX single-digit an We our non-acquisition after around increment in accretive continue to financing, low diluted XXXX be million in our despite Match Swedish QX. for relatively costs, increase and of
to earnings in February, results be full-year this at expected discussed notably are bottom-line HX-weighted. As year’s
volumes the range quarter adjusted already revenue diluted estimated billion, accelerate currency impact However, of the $X.XX, forecast XX to in in the high to of we into with of our including XX expect growth unfavorable XX between second EPS organic HTU We second single-digits. $X.XX net and shipment an cents. quarter
the top-line a growth to return expansion. the ahead close and Looking to second half to we margin year, expect of double-digit organic
the a through lens, forecast performance different for headwinds full-year our expect at we Looking year. the after of in remainder the QX very strong temporary
ongoing EPS higher to improving headwinds at driving strong This with our growth unit, with combined with organic of IQOS currency-neutral XX% volumes per combustibles. top-line Despite XX%. and we reflects to expansion X% the pricing diluted and margins HX drivers ZYN of revenue in margin adjusted and expect net stepped-up on underlying a investments, of growth transformation, XX%,
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our as the rate the with at we of faster a rest by converge year in expect to in implied shipment accelerate pace to shipments for of forecast, than the XXXX As growth HTU XXXX. shipment grow consumer full-year offtake, and
sales not representative and dynamics. This the as cases impact shipments volumes may offtake markets, and to shipment that as inventory these use IMS be certain we our fluctuations available. means the detailing Before measured distributor trade, that these the IMS impacts, it's not to such at as retail important is volumes of point In of are can reported data the sales market share, note instead in both not Germany, proxy.
is may choose this a adjustments we movements. the on, distributor provide inventory and Given and estimated from better IMS data, now where reflect reflect over significant there between wholesaler difference impact performance offtake to volatility total based quarter the seen metrics offtake, of and where IMS estimated on share adjusted market to
As to provide release the you may note also this for where this earnings Germany figures. is in historical appendix the today’s case quarter, we
consumer and stock February, in meet and offtake. volumes the the the end to build-ups due below explained constraints inventory distribution to QX, XXXX markets at results reversal several of to some shortages. of Coming as some HTU production in launches, to needs were create the mentioned ILUMA This QX, our back of of is full-year safety to mitigate European energy risk shipment at by also
this receded. as As anticipated, we were able to QX stock the in safety risk adjust
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volume share and Philippines category impact attributable in was as movements industry points the Poland, as declined the Iraq. share of QX, neutral, in with and Ukraine, all large which The declines percentage by Pakistan. cigarette and Philippines, markets including mix was markets such as by offset geographic the to Our in markets Egypt, total Turkey gains within essentially X.X declined such
target we continue XXXX share category impact despite over a and IQOS of Importantly, to the in cannibalization. stable time,
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success Central with further of shows of progress ILUMA. across markets offtake outstanding Europe give a geographies Southern, city some Western, The of latest Eastern from region, including slide color without continues selection shares. and To key range our IQOS in XX the a diverse the on and
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tobacco by following a in the health claims scientific outside is differentiated of also positive first States country where for permitted regulatory products. are encouraged statements recent the that Ministry developments heated We approved Health healthrelated Greece of United the robust Greece assessment.
Japan, high grew X.X X.X XX.X% driving HTU growth. In four-quarter by total with reaching moving points continued XX% IQOS Sendai. Adjusted a in heat-not-burn increased share share The recent sequentially, of Tokyo in units to surpassing acceleration volumes billion seen XX% XX% represents and quarters offtake our now over in category tobacco a with in category IMS QX. brands record the again total tobacco Adjusted of on average. for
broad Strong of the performance in consumable Japan further highlights portfolio. importance continuous innovation and a
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key successes offtake Europe, Bulgaria Egypt, in Asia East, Eastern over include QX Notable and Middle share in the share Sofia Latin reached selection a offtake shares of X.X%. city offtake and XX% highlights of America. slide where markets with This Cairo across
robust We important also continue to volume markets. offtake across future growth see these
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volume XX% million growth performance Most U.S. of cans. the to outstanding in impressive with continued was ZYN the XX
in following growth estimated growth volume was movements, benefited XX%. above While restocking flavor strong, ban, inventory California from volumes including very in underlying well December the
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later year. deliver to we our integration progressing employees Match’s very well our congratulate look sharing I is thoughtfully like for to we growth The as on Finally, activities. Swedish plans to results this forward would combined continuing more integrate and excellent
ZYN’s XX% XX-month XX record performance more volumes Now examine with rolling shipment million progress which U.S. equates let’s growth. of detail. continues a in to increase Superb recent cans, in
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Importantly, and also for positioning retail premium strong its highlighting superior ZYN XX.X%, value equity. remains share at brand
There are two as driving of engines CAGNY. key the covered ZYN, U.S. growth at
QX, opportunity There First further progressive XXXX at remains increase is number the the in XXX,XXX. higher XX% with than ample of this to increase over time. stores around distribution,
an ZYN by to as to are users. store the Second of with compared adult continues per prior XX% nicotine continue and cans number resonate sequentially velocities velocities, sold brand week. impressive the grow to per year or
me our Now, update further to you smoke-free on plans let journey. our exciting accelerate
As major priority. the previously ILUMA mentioned, global IQOS of roll-out is a full
this ease. track make on manufacturing are constraints as We substantial HTU year to to progress continue
continue plans commercialization in recent principles the conference. line QX U.S. outlined IQOS the with We CAGNY to work on in for XXXX, at our launch
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focus relevant are in for launches progressing consumers. on deploying continue before to a on In is we to offerings, Low BONDS, Colombia wider our addition markets and the intend that premium well are heat-not-burn these Philippines taking Pilot learnings Middle-Income we and innovation our scale. the to continuing latest and from especially
CAGNY -- ZYN ten the launches targeting this mid-term look nicotine specific from with satisfaction. mentioned develop is world’s notably international and category the relaunches combination leading the adult Swedish we as value the or the convenience, key smokers Match to occasions, are to who opportunity At year brand. we with use pouches, I Another up of expansion taste,
including commence to countries. emerging a this expect in developed We markets this summer, and few both
no the to clearly are nicotine ONE focus is system on the VEEV largest and our challenges. portfolio focused and intend accretive growth profitability commercializing most We file consumables near-term and enhanced our and new as focus will manufacturing which will VEEV technology. longer devices on given user e-vapor ONE known the markets VEEV VEEV we and intend former on with staying product a heat-not-burn current result, we category to adjusting replace FDA present costs. optimize engagements of and, prioritizing outsourced an for experience providing we in the opportunities, fully While pouch to categories, Instead, the select and a ZYN. PMTA a approach. pod-based IQOS
We course. on FDA future e-vapor back will in due come authorizations
growing fastest rebranding to the e-vapor we disposables, VEEBA For segment, NOW. are VEEV
All of VEEV under products e-vapor seamless consumer the for our be will experience. recognizable brand single, a now
will this this platform month the VEEV agile for Canada VEEV apply We and later in year. new will approach disciplined later introduce an and further roll-outs ONE
draw all Report for Moving want future. Integrated focus resource towards our to includes This run-through are investors advancing such sustainability, purpose and The month, to allocation this transformation. topics. progress making we smoke-free prevention, those comprehensive in smoke-free a published I which your achieving decarbonization, waste, provides to towards our sustainability XXXX report access our earlier the first most material of our as attention outlines youth and our post-consumer
Index, equity measure we XX% performance. the Report, updated in continue our even Integrated on compensation. focuses define our performance-based conjunction long-term XXXX in Protocol the proxy criteria In published as It which outlined more KPIs on ESG represent how of also ESG and robust KPI executive we with our success to Sustainability statement an providing included
of important how which Disclosures This we on Financial on our and the Report announce companies first to for yesterday, Climate-related as I TCFD that regulations am will in also are released an proud the Task document. be many compiles topic we implementing reporting one Force evolve. recommendations updates disclosures previous our
ambitions. in are our contributing also engagement pleased CDP’s included leaderboard, Lastly, recognition, A triple following CDP’s we that, towards scope was PMI again achieving X supplier
for XXXX in presentation, performance conclude headwinds. on are we today’s strong track despite To margin
these we Our expect through to ease strong, and underlying growth year. remain the fundamentals headwinds progressively
growth. third year we us put single-digit on-track results consecutive Indeed, the of delivered high organic QX for net higher-than-expected revenue which
oral IQOS as of positions the heat-not-burn category the excellent growing position performance nicotine. ZYN global Continued enhances leadership further our fastest champion with of and largest category in and smoke-free the
progress action taking become pricing recover and are cost savings we as combustibles in We to initiatives a through to rapidly toward inflation, business. ambition cost majority our our smoke-free
our further sustainable a to highly generative remain unwavering commitment as rewarding to our dividend delivers cash We policy. with look we transformation business Finally, an progressive our forward shareholders growth.
Thank you.
your answer questions. We are now happy to
