now leverage in ILUMA is plus rapidly, a key and plus IQOS in XX% Russia. IQOS of to IQOS welcome, you, well growth. markets, per shipment. available in-market that progress volumes plus with XX XXX% supported in volume our Excellent expectations performance and James, in of XX% QX, and by contribute with organic as gross sales continues momentum revenues share, Thank smoke-free income plus outstanding in XX% adjusted revenue and in with we positively. IQOS profit XX% diluted growth continues representing delivered ZYN robust of earnings exceeded currency-neutral net adjusted operating net operating outside advance growth volumes growth everyone. double-digit nearly all this In business organic and as as driver
XX%. up with U.S. continued also growth its ZYN plus volumes considerable in
accelerating primarily to growth expansion faced improving performance in the in the performance. in quarter, strong profitability headwinds addition businesses higher-than-expected operating organically the and by pound. to both due was This Importantly, this of and translated notably IQOS our Egyptian currency ZYN into driven in top and margin line dollar terms. combustible both devaluation income We
which including We our to are actions taking QX deliver mitigating prior initiatives, diluted above these additional and adjusted expectation pressures. despite accelerated allowed us cost pricing EPS
quarter favorable this exceptional the growth XXXX in stage to comparison, prior for deliver start and for prevailing was certain better-than-expected significantly U.S. us the the set robust rates. currency-neutral While year at year dollar growth to growth
good as top Turning plus organic line to numbers. XX currency. growth IQOS the ZYN plus including supported excellent headline X.X%, volume plus Very growth of of X.X% reflects or continued and Operating prior deceleration This shipment plus growth. grew gross strong as a margin by momentum pricing. softer expansion driven year quarter, income and notably combustible by well organically a versus XX.X% SG&A in
our X.X outlook As outperformed to OI and combustible of volumes margin points. adjusted is our X the We revenue plus time delivery. by by grew terms, higher-than-expected ZYN, factors: organic IQOS benefit following some the growth main the HTUs better industry-leading first net and XX.X% the XX including of plus expanded due basis a profit a of shipment adjusted percentage points. and adjusted strong resilient dollar expanded impact OI margin OI result, In EPS by QX performance
to up step of prioritize and benefit back-office investments. efficiencies focus Second on action some and including our to benefit is mitigate costs, timing And the on headwinds. is a pricing manufacturing third currency growth
includes the which share earnings The year. $X.XX well bodes unfavorable excluding the pound, now liquidity exposure coming payable. the balance be Egyptian complete this devaluation $X.XX, of the diluted in representing impact and of impact currency transactional was pound, growth reducing the XX.X% per Egyptian by from remeasurement are Indeed, business majority we $X.XX. should a the outperformance sheet adjusted dynamic the an balance This we of of currency of With underlying delivered of $X.XX driven primarily plus for related in including of sheet the to increased remainder weeks. foreign our
volumes. on now Focusing
units Our was resi HTU geographies around and units growth robust and was X with disruption. related shipments billion outlook higher-than-anticipated across impact shipments timing primarily The underlying billion exceeded to our of to trading Japan. XX.X incremental QX impact of
While normalize uncertain, second the we will in assume the this half of year.
is As we grew XX.X%, IMS previously, of consumer underlying HTU believe ban characterizing from best indicator including mentioned the flavor by the the to offtake. impact in-market Adjusted Europe. plus expected closest sales as in the growth volume adjusted metric nicely
Japan, momentum underlying contribution IQOS growing in in fundamentals We and newer Indonesia. with excellent continue from markets, to a Europe robust see as strong growth such
plus growth the newer XX% market plus HX XX% as powered smoke-free growth smokefree X.X% the adjusted XX% pouch impressive by ZYN, plus to demanding driven programs, and growth shipments by by expansion volumes around year portfolio, by with with acceleration declined the Turkey includes plus quarter followed We notable we the XX% XX% Cigarette achievements in commercial uptake, million of QX XXX contribution a an less with by increased Total a a ZYN share in market. to for positive our oral volume cans. overall comparison. timing grew continue equivalent plus prior first year, XX.X%. ILUMA plus U.S. and modest of target from of IMS to by in shipment up a strong
our the net Let drivers me QX revenues. through now walk of
by net revenue its showcasing our top reflecting an revenue the overall a unit higher as mix plus of X.X net a contributed points category plus I growth to to even oral. from the Oral growth, as points remarkable meaningful Smokefree and pricing mentioned, accelerator. on points, as grew added role X% plus combustible plus X.X ZYN. IQOS X.X by primarily greater boosted extent X.X%, HTUs. line, product percentage of Pricing plus per well organic As volume of including smokefree around
for economic delivered growth. To report impact a elsewhere. mix of smoke-free XXXX, our grew the there positive engines business, our revenue within accelerated a combustible The our smoke-free positive still product, growth. contribution context the oral negative was e-vapor are and business, cigarette good pricing margin which market, was in group, from and of the small product transformation In product smoke-free and X enduring faster decline geographic
percentage impressive smoke-free profit XX%. of top performance grew strong by plus a and effect made Gross very not few our basis reflects gross smoke-free total by a only on phasing. increase profit, due XXX manufacturing U.S. of up and and organically key organically both XX% for acceleration This for the X plus profit growth is versus by prior year. of percentage oral now overall, QX ZYN HTU Focusing gross of shipment an productivity. an expanded plus line it points to which of including IQOS, margin the amplified growth striking was to and burn points scale strong close dynamics XX% substantially delivery and the points of This underlying nicotine plus
growth year volumes, improved manufacturing Gross pricing geographic at cost and the profit gross improved outlook. than of margins Combustible the strong the better than and also an impact notably exceeded expectation and productivity organic plus IQOS Resilient cannibalization. mix to our were full anticipated, continued category, was offset X.X%. more in leading pressure
As carried and leaf, and cost in this XXXX previously increases next inputs flagged, year. wages ease certain over should other into
quarter. expansion. increased of points, of XXX XX income margin directive, of primarily key by impacted and including evolution the currency. were productivity also the growing to QX $XX within combustible. combined factors, cigarettes. significantly feature We million impact within organically margin EU on points basis A by basis basis weight smoke-free Gross plastic cost points business better-than-expected This our of higher product unfavorable expansion implementation XX strong and at their single-use of excellent in from outweighed Indonesia, These was technical around savings third-party equated operating manufacturing reflects the in dilutive margin by with which
target only programs, from resource including For SG&A currency-neutral margin $XXX the plus and prioritization X.X and cost, points SG&A plus XXXX, organic XXX delivery towards in $X million growth cost of drove our XXXX. of for This allocation expansion. across of COGS gross efficiency benefited our approximately billion basis
SG&A margin evolution, QX including currency, to notably small Although was the due Egyptian currency. transactional cost of pound impact
target year. for to line growth the continue We below progression SG&A top
our these higher plus in organic factors remainder favorable expect the notably year raising basis are our in margin. will This outlook income I as points, plus spend organic currency. and XX investment full remarkable of growth a to. powered now phasing, increases basis operating in which XXX expansion income of we SG&A back including QX. and was operating XXXX, come our point We exceeded Combination reflecting expectation,
margin the reflecting factors, rate South very We transactional the broad-based Taking geography. regions margin another see mainly of dilution to impact technical pound region In income currency operating progress. Asia, -- by Africa every these in and similar terms, Middle momentum a with at region, CIS Indonesia all grew adjusted delivering the Egyptian and margin expanded group. dollar on this the East and Southeast lens global strong organic in except region,
IQOS in share on exceed in continue HTUs PMI largest launched, widely HTUs position present. broader is now the now which PMI market. following brand include milestone prior strengthen ILUMA the With Indonesia, where second market XX% nicotine commercialization as IQOS. excluding we Two now to basis, their markets the the
CAGNY Our HTUs have surpassed and brand net in at the IQOS are XX of shown #X as revenues markets those nicotine Marlboro.
QX plus the XX regional first share for in IQOS Focusing also time. milestone share points. HTU on Europe. increased crossing XX% by the
moving Republic, billion Growth reached such exhibit uptake Spain, growth price plus in Greece, on in Germany, European the increased of early many driver, in a year-on-year high of with and reflects slower markets IMS a Tugal, units where of growth average. and This a to economic markets. excellent of and the X.X% seeing markets, U.K. was Czech historically slower in ILUMA we continued are pressure X-quarter growth progression are and Adjusted acceleration Central certain growing availability XX.X a sensitivity Poland in visible. as QX the still number and record is sequential While a strong Netherlands. key and volumes robust
evolve recently systems continue launched our further ILUMA under market drive We to in the to growth. this portfolio
growth absent grew where Ukraine, sales in-market digit. Excluding was double adjusted
X observed situation, adjustment by markets, flavor Consistent growth affected impact XX to As the our regional billion so far an with consumer of total restriction of initial estimate in loans. CHF by past followed an the year. anticipated, saw previous with line characterizing we a rates around similar for EU reversion
not the seen or we not We over IQOS meaningful structural of year. continued towards HTU progression And is rest growth e-vapor the competitor to the X have of expect product. shifts fuel
high the and HTU this by is cities Iceland adoptions increased national market fundamental volumes with of an very and plus total as region IQOS tobacco expansion world. Madrid, Amsterdam our the in by already X.X growth shares. market recent is overall. testament In in at of progress IQOS a and for potential Europe progress gains is such Such to of strong Lisbon, for tech acceleration Very the category Consistent plus maintaining brand in brands Budapest with Adjusted the key level. high the highlighted the XX%, for London, increased strong the for also excellent in city further clear IQOS in The rapid Munich IMS potential penetration demonstrate the sustainable in already XX.X%. by impressive around points share Japan, adjusted quarters. to growth the the growth promising
are strong we national i expansion on In ILUMA continued in launched devices In direct footprint, equity connection We ongoing. IQOS we latest fostering commercial with remain innovation. on growth March, brand laser with device through consumables. IQOS and and innovation the focused both channels
test innovation Our premium of new and a Terrier has experiences brand. consumables number on in the included variants
appeal tiers offtake continue category price to the share as illustration business continues consumer same Terrier on helped to the lineup how sent. the a data this IQOS this This of is As the mainstream across of good price shown and at has with growing chart, evolving our is premium successful market reinforcing as Japan grow. broadening while strategy time different growing by
clearly and East in the since by is it as Tokyo almost by in X/X performance region smoke-free Asia Australia QX. surpassed Japan in The Led category January ban potential and continued demonstrated of then. to CAGNY revenue and reached not combustible shared have the net volumes at the category grow Korea,
timing, While of X/X as strive smoke-free becoming for clearly XXXX. ambition we somewhat surpassing this broader flattered by substantially demonstrates shipment our the by company towards the forward path
very targeted see by highlighted globe, to promising TCT New in and Japan market, of as growth and Indonesia, we including where Notable call across out introduced and the commercialization variant shares. middle preferences. income City to catering Europe, IQOS we to in areas Outside offtake -- have continue low expanded
uplift in and growth the IQOS now over estimated users in have witnessed an country. XXX,XXX have We user
growth tech Our Jakarta a of with percentage is plus to indicator point X industry. growing in city share of this in X.X% X.X total
and promising measured in And also share to pleased by plus #X recently sister and X.X X.X to Malaysia, National following X.X%. South continued We up also share as IQOS see the despite re-acceleration to the points and report in offtake Seoul, growth the grew with XX.X%. recent we to pricing, Balkans. are of introduction out ILUMA, Korea, offtake Egypt of brand by became Lebanon stand HTU in IQOS the Teria market -- Morocco, results
While slide, Saudi share offtake also resumption national not QX XXXX. a in following shown on Arabia the with of IQOS restart this commercialization of had promising late X.X%
of novable In with a similar has our as vein of by growth Canada European ILUMA in acceleration to coincided launch an markets, some key the Toronto. in shown here city
While still is regulatory and ILUMA days clearly restrictive early development. for this a a very positive in environment,
points price despite and to sequentially $X.XX progress consecutive rolling in months March. category the year-on-year to shipments. in Impressively, an in XX a continued X.X X.X plus share QX fourth ton quarter now where of increase XX% U.S. ZYN, per points sequential for excellent plus Moving XX.X%, grew plus volume increase with growth
share positioning equity. velocities distribution and nicotine in strong accelerated step-up reflect and Retail This ZYN's brand gradual the highlighting superior value as growth XX.X%, a premium with users. nationwide adult to category again also gained traction broad expansion grew store
at ensure use. unintended XX consumer effort product. support robust prevent have legal We with focused influencer, digital FDA's a to CAGNY, only -- Match age retail to code follows prohibit ZYN nicotine we media over access to partnering outlined on platform Swedish As responsibly to U.S. adults. includes ensure sales marketing remain using plus XX help to marketing only to and social that age-gated the
and remains full stepped effect organic a net notable plus of The of growth HX. to in from a Germany reflect pricing portfolio favorable, a X.X% moment X.X% Egypt. year I'd QX. plus of plus a contribution pricing up in X% in forecast pricing revenue our This like delivered primarily with on spend environment robust X% where combustibles, to we and increase lessening better-than-expected plus with now now annualization
in share in volume Poland and the modest Algeria, total Our plus decline which in and Turkey by X.X only by grew cigar this fell includes points resulting category from contribution X.X%. QX, positive industry, cigarette a
category gained during with Our share plus quarter points. brands X.X global the Marlboro gaining
As previously by this may in which flagged, flattered was a supply share XXXX of normalize constraints Egypt, our year. competitor segment
resulted QX, pricing in margin mentioned, already better-than-expected I manufacturing coupled in As accelerated a strong evolution. with also productivity
Smokefree Now expansion transformation. update let our and as on latest accelerate me provide an plans innovation further we our
time. been easily as positive. first over i portfolio the to Initial to The smoke-free ILUMA new ILUMA resume of Japan. As plan most earlier, range innovative more pause so feedback where geographies moment devices, has order, recently includes in features. i, consists device offering which experienced we IQOS XXXX, X of relevant well information covered I adaptable new a to our can in HX as left quickly touch the launched gradually and This their the allows we offering date off. see to ILUMA and pause user I very was market users the consumer ILUMA screen they out and on launch Japan roll mode, to
consumable on credit. as is critical ILUMA our the a offering we broaden and also As performance, platform shown in Indonesia innovation Japan
HTUs, Republic Livia cities markets QX launched mainstream X with Romania no the price tobacco the later are select first we Delia, this leaf, in nicotine, was HTUs out were initial In but nationwide results. the to and U.S., continue Switzerland, consumer for pilot Czech year. which Hungary More and in our in with new promising system. in brand prepare contain for the planned rolled - IQOS
previously, different users activation allowing legal cities the elements on be model. and limited us a of direct in to in experiment be of select will the As commercial with edge mentioned will scope nicotine initially commercialization focused few
our from is of IQOS to key following anticipation leading launch fine-tune at-scale of purpose focus, the The a international approach as in ZYN, of remain FDA. main this world's authorization the the of pouches activation The for ILUMA, consumer expansion nicotine brand. notably
is early We profitability in is HX. have path for strategy and on so are good repeat our purchase with markets to in or into In results. very Positive feedback this focused relaunched translating later XX a e-vapor, year. and rate, VEEV launched we promising consumer planned conversion far more showing
to pricing we year and for positive on With headwinds our me brings best-in-class mitigate are raising currency-neutral volume mix forecast. us outlook to This This with combined full unparalleled momentum, more pricing efficient deliver us margin strong expanding smoke-free should our growth also robust rates our helps objective at in currency allocation growth allow cost and to and prevailing of terms. XXXX. dollar
cans. around our to million volume we continued Given U.S. increasing in XXX are progress, forecast shipment
further expansion capacity have support our up. step plans We this to accelerated additional
IMS prevailing HTUs reach smoke-free We billion IQOS XXXX at to net $XX in continue of growth to rate. shipments strong to in and adjusted both close target and exchange revenue
Factoring combustible to our we are a and plus strong and forecast plus increasing X.X%. to X% net smoke-free organic revenue shipment both in on forecast the pricing increase outlook growth product
addition strongly we expected productivities. combustible, significant smoke-free a uplift negative in expect previously organic also higher margin had gross includes In driven accelerated mix manufacturing expansion scale margin growth, to a is It development. IQOS in and effect, revenue we gross accelerated ZYN to organic assumed expansion. due our This where margin by
In are focused in on addition, growth. delivering invest efficiency smoke-free continuing further we SG&A to while
plus to we raising result, a XX% XX%. income to organic operating growth forecast are As our plus
the $X.XX yen. prevailing Japanese explained we impact of into plus by recent to to primarily the diluted and raising currency-neutral of in headwind XX%. diluted and translates an plus adjusted forecast devaluation $X.XX growth to the an increased The Egyptian our Accordingly, including EPS pound $X.XX This X% unfavorable are rate. EPS adjusted range forecast at of currency is weakness
proactive actions incremental mentioned, I the mitigate impact. taking are we to As
exchange prevailing rates. We and income terms in operating margin year and growth expansion organic at expect dollar full both
the After expect QX with ranges. year revenue overall organic a HX includes net around full and expansion end This organic of performance, HX in and/or we our growth strong high excellent HX. the both
specifically, of QX HTU deleveraging $X.XX, sheet, strong an at remains we a million assume to including We unfavorable priority. billion adjusted XX prevailing regard EPS diluted $X.XX of to shipment for continued balance of growth forecast and our key ZYN. to For XX $X.XX variances volume volume rates. currency-neutral With currency
to a generation. X.Xx X.X growth to target cash in to improvement continue net driven and We profit XXXX our in ratio strong flow by debt EBITDA adjusted
target Switching We once consider track. on reaching the end by also and of to buybacks continue will Xx confirmed are we XXXX gears. around
like PMI Jennifer, As progress. to sustainability this Motles, share to of I would Jennifer our Sustainability update XXXX over coincides with an our quarter Officer welcome on the report, to publication you. integrated Chief
