Altria (MO) 1 Aug 232023 Q2 Earnings call transcript

Good day, and welcome to the Altria Group 2023 Second Quarter and First Half Earnings Conference Call. Today’s call is scheduled to last about one hour, including remarks by Altria’s management and a question-and-answer session. [Operator Instructions]. Representatives of the investment community and media on the call will be able to ask questions following the conclusion of the prepared remarks.

I would now like to turn the call over to Mac Livingston, Vice President of Investor Relations for Altria Client Services. sir. ahead, go Please

business morning Gifford, you Mancuso, Altria’s Altria’s first will Good This our joining morning, discuss half and quarter Billy CEO; second and Charley. for thank us. CFO, results. Thanks, and Sal

Earlier reports The and presentation, results. providing release, available all issued at today, corporate quarterly responsibility a we latest release our press our are metrics altria.com.

stated, the same During to our results call we’re today, comparing unless in XXXX. otherwise period

cautionary review statements statements cautionary at and of the and forward-looking today’s forward-looking subject Please and cause actual of various contain remarks end materially results Our for Board. to payments dividend to repurchases factors section and Future could future the remain projections discretion release the differ our results. earnings projections. share from that of

in accepted non-GAAP of our and reported that special are release financial included U.S. website contain affect with in reported will call today’s comparisons earnings at our exclude accounting Descriptions and Today’s basis. operating report results on these both, and generally various with items financial reconciliations Adjusted altria.com. measures results We results the on principles. adjusted a accordance results.

segment Finally, consumers to today’s all tobacco or to or existing within references a age category tobacco adult remarks consumers tobacco or of XX specific years consumers older. in refer

turn that, With I’ll to Billy. the call over

completed and We Matt. morning Smoking. on our for while investing in of billion shareholders year, Thanks, returned we journey first first the Moving pursuit we adjusted earnings of half, and joining $X.X you and diluted per share Beyond NJOY continue strong the Vision. by us. X% thank solid our business delivered growing Good results, to acquisition in of We had half a towards our exciting and

X% deliver rate of $X.XX. in adjusted plan of full-year diluted growth to to executing of range $X.XX EPS in to XXXX our the to adjusted a This forward guidance second XXXX. $X.XX half an from range base look commercialization for EPS diluted a X% and we reaffirm in year, We NJOY our the represents

product update portfolio, the impacting flavor on on My then morning provide an further the focus on on I’ll this over NJOY; recent remarks our impact our will will results. businesses; dynamics to it including Our its smoke-free Sal, our core and market. tobacco the California turn details acquisition enhanced and ban and of three who business topics: financial consumer

acquisition a began with U.S. Smoking in successful goals in Beyond most products. has smokers towards Moving our our alternative which the to took NJOY. been the Let’s transformative e-vapor, of transitioning of In June, category step completing by we

on NJOY, and underway plan integration Company. and accelerating focused are The only authorization adoption we NJOY from marketing [inaudible] FDA. to the and welcome smoker the fully U.S. vapor the Altria the team of is already pod-based business responsibly products We LLC, e-vapor currently with well

such and in capabilities vision supply wealth expertise. bring international there’s operating upon experience build They own, recent our our that to we We towards vapor knowledge complement and chain product manufacturing category. their as still development, device and accelerating this progress excited and some are and believe partnerships,

frequent offers and it the to out awareness team of NJOY and availability difficult Prior retail make stocks stores. to to close, limited available make build for

In complete device pod fact, lack the and stores ACE, with all of of XX% inventory SKUs. of five distribution

top after NJOY only starting transaction. stores two space to this an opportunities. bringing volume employees distribution. trade X,XXX tremendous completed these enhanced and health improve their have by presence with e-vapor will chains convenient At week, address efforts, the to gains inventory, using of inventory improved in [Inaudible] existing world-class XX organization, that over visibility strong It to and we nation’s started of retail is fixture with their relationships through months store begin NJOY already a have because premium retail

of approximately a total plan we month, competed XX% transaction. this since we increase later And XX,XXX broaden the to stores, a to base distribution

We channel. the which end Altria of year, of approximately of remarkable Group multi-outlet highly XX,XXX total e-vapor this XX% work progress to by a the expect sold This a to across of and represents and cigarette stores expand volume volume in further the testament distribution the and and collaboration. employees to is talented the of applaud I convenience the U.S. hard XX% companies

growth months. Pouch U.S. year-over-year In products, and grew in Oral drove now oral encouraged X.X just the the share the estimated XX.X% of U.S. tobacco Category. the six are Oral by Tobacco we volumes X.X% total total Oral Tobacco, oral Nicotine which increase continued over points represents of on! past

quarter, XX% of share second second X% year-ago it’s year-over-year period consecutive share the share on! in sequentially, quarter. This of points increased of nearly on! and In growth a volume reported X.X% versus XX% oral almost and growth. tobacco retail the rate represents increased quarter XXth the shipment the on! reaching

while this growing retail portfolio while We continue results of share impressive year-ago price XX% believe strength growing behind into effectively focused brand equity. on! the expect demonstrates promotional its strategically its profitability Helix as grows these their reducing XXXX. effort to to on [inaudible] investments continues growth versus brand on!’s ability product investing and the period. is and

our September, on! signed test an In team of again PLUS. international

teams launch. vapor via system inform Tobacco-Derived can disciplined Our to approach proprietary will product where feel e-commerce to the a an available in material. be Pouch our New a U.S. Sweden, take long gain Product Wet plan and that Nicotine learnings future a But optimize features soft that life

excited will PLUS be and too. believe We consumers on! are about

on basis. PLUS research out vapors While a indicates over and early the consumers a and four sample size, of prefer team health small about our client [ph] three [inaudible] on!

We the on! year. in first our are PLUS for next to of P&K on half file track

to industry In cigarette volume moderated. move our second Businesses. quarter, declines Tobacco now the Let’s

refer to past gas consumer the the discretionary inflation, the levels. higher However, continued continued. largely combined dynamics of consumer we with effect cumulative the And year with prices, pressure,

have to this navigate tools However, environment. believe we we the challenging appropriate

Team Marlboro® for price-sensitive Black behind family of investments. provided capabilities marked the For of the while used RGM being Using example, year. support strategic smokers, this commercial their Team USA deploy products additional series a efficient Marlboro with earlier band analytics, to investments

to As a of result, quarter grew category XX.X%. sequentially retail cigarette Marlboro second share the

turn on now where products the product to California, flavor ban tobacco enhancers to of flavored went year. and the last tobacco effect late sale Let’s

While enforcement remain We brand as with perform to activity. the such the and continued reseller of evidence illicit manufacturing negative unintended we the to observed and rated policies. we law well quarter the the at measures concerned probationary first and day, end products, continued non-clients market issues our the our lower cost remarks, of commented in of

the the in the less example, OCB combined. For year-ago roughly OCB in other California in still California first of the year, XX states comparison, were solid XX,XXX Flavor Cards available in available. Card was cigarettes the than volume period sold triple menthol branded In legally half Flavor the when amount branded more in was

discarded To and further where XX,XXX of represented analyzed And in California, stamped nearly ban quarter California consumed XX% in law. other findings manufacturers cigarette menthol were menthol products almost cigarette researchers not the a the the nicotine products. enactment. the California. comparison, In use cigarettes to to suggest category understand of products, consumer packs total recently sidestep were commissioned illicit and collected the the sale approximately half of introduced that for study prior Their party we third tobacco tax a approximately purpose of we of believe

products Flavor to over the collected and were disposable in while by unauthorized flavored, products the XX% FDA. authorized California the the were of represented study, e-vapor being finally, And despite subject – Ban e-vapor

regulated. alarming substantial tobacco to is are products market figures way We and keep best activity. and These prevent legal the to indicate illicit believe illicit markets

clear in this made ban. we in the FDA's have We the response submitted public to proposed menthol comments

policy for trade there's growing partners, consumers, the advocates, product diverse reform embrace enforcement justice public makers is to for tobacco of who agree; stakeholders tobacco reduction, as and health a advocates, our proper and law framework goal Our growers. regulation, harm nicotine including and criminal chorus

a In And reduction fact, products smoke-free public smokers benefit supports prohibition. future. moving combustible opinion of shows away harm over from a health significant towards public overwhelmingly science

We reduction. will that continue advocate well-regulated industry U.S. to harm a embraces for tobacco

from with unprecedented of and the smokers way if to the regulation. we support have millions follow reasonable in lead opportunity of shifting science We innovation foster an the away cigarettes,

turn Sal it on provide the more business results environment. to now I'll detail and over to our

its combustibles the while balancing by smoke with free and operating quarter appropriately product company’s Billy. products. deliver of the The growth on its The segment maximizing income the Thanks, X.X% of smokeable Marlboro, funding segment second the term, profitability long strategy in in adjusted investments X.X% over to in by first continued grew and half.

compared was year. and pack XX.X% OCI for expanded the the price price second for more than Marlboro half. and XX.X% by second retail, increased At Adjusted performance supported the This net robust realization quarter quarter last first in quarter to half. net in second to XX% of first X.X% the margins

and for domestic volumes the in X.X% half. Smokeable reported XX% trade product second decline the adjusted and and and by cigarette quarter by domestic differences in XX% inventory When half first first volumes cigarette XX.X% estimated movements, respectively. an quarter segment second declined calendar

the by At that in points grew by share sequentially. first the half. was adjusted total second domestic in discount cigarette we retail, declined X.X level, At X% X.X% volumes year-over-year segment flat estimate industry quarter but and the percentage to the XX.X%,

financial down conditions as the adverse described. of result smokers some a that believe trading Billy We are

in levels. discount We branded also segment, priced increased discount continue the to at activity discount the competitive see multiple offerings including

a retail the for consumers. the to sequentially tenth by share that a economic XX.X% ago quarter, declining mentioned, versus described. resiliency grew pressure displayed Billy dynamics second As six-tenths during Marlboro the discount period driven category partially of Marlboro’s period, the year I of while cigarette In

in and menthol increased category of the of have Flavor seen California decline We result balance a a total the from the Marlboro's the competitive of share Ban brands also in activity menthol country. as premium

year-over-year, loyalty. its a seated sequentially aspirational grew to premium with We the the the while performance Marlboro’s segment brands an segment the as past year. strong segment testament the its Marlboro and positioning over five-tenths XX.X%, is consumer brand the increase long-term over within of share Additionally, to one-tenth believe in other premium share within

Middleton In reported Mild Black shipment The expanding team momentum, tip the will this offerings. which half. past and nationally cigars, is enhance first month. volume this continue further X% available Black the Royal later team & Mild [ph] the to Royal, cigars in expects To be & increased

more price strong tobacco the on! grew segment OCI In to adjusted to margins performance Moving grew adjusted by This OCI investments. OCI XX.X%. efficient the due net with promotional segment adjusted of XX%. robust in by and margins to OCI the X% first quarter expanded supported was oral part the half, X.X%, segment; second adjusted realization, product

second decreased second quarter on! movements the When and and the segments growth decline driven adjusted offset calendar partially by The was Total segment X.X% the X.X% of for by by estimated volumes, volume shipment half. an respectively. the differences, for MSP inventory declined by first first X.X% segment trade declines in half volume reported and for quarter and volume both

tobacco Oral competitive performance on! the to X.X Copenhagen in continued product our be by offset retail growth encouraged by continue quarter the the as segment share a leader. were partially remained of the points declines percentage second in category brands declined on! to grow as of in share products, and category tobacco MST oral our continued We

recorded year ago Altria’s period earnings Moving investment in adjusted increase to was results. first the This quarter. ABI's X.X% our an we and $XXX represents in equity of million the of approximately share second quarter of XXXX ABI, from

last ICO’s loan of EBITDA July, balance payment, plus Philip ratio agreement as billion X.Xx. received we Morris we second After remains term International announced the In a as $X.X and debt the from the quarter, NJOY to the repaid sheet Our remaining to we we the end receiving our the the finance interest entered part strong of fall. of transaction. was

in at of share the We of with strong creating cash, a and through long-term million authorized returns remain vision dividends, million shareholder this expect billion of paying by billion and which year. and approximately our repurchasing we this capital remaining available million. commitment in shares At pursuit balance the to acquisition to program, focus repurchases complete value notes our $X of $X.X end first retiring significant $X.X billion approximately sheet. half completing currently the the demonstrated totaling under our We $XXX $XX.X maintaining NJOY, by on we the committed in June, maturity end $XXX had long-term

to happy we'll that, be your wrap Billy will questions. With up and I and take

on non-GAAP calls you quarterly inventory today's and the which metrics, items. pricing, We've I'll our are being include usual altri.com. are earnings and compiled, posted While also available remind other our release reconciliations that

questions? any Let's period. we open question-and-answer the Operator, have do

apologize the Just some quickly before we turn the those to it the I Q&A, on in webcast to to of audio want we over had you on call. issues early for just

access the to you'll posting have replay, expedite will remarks. to full the of work so So we our

with Q&A. So that, we'll turn to

you. in media participate [Operator and session. Instructions] analysts, the now question-and-answer Thank are to Investors, representatives invited

Kaufman the question investment Stanley. questions from take We'll first take our Morgan will Pam community first. from We with

Good Hi! morning.

Good morning.

cigarette X% long-term How would of normalize mid-single-digit the level? first Cigarette year. volume expect what do category? think them volumes in happen volumes that you And about the half to the the Do industry decline return for industry towards industry to outlook this for need you were to down will rate?

question Pamela. the for thanks Yes,

I bit a the actually believe occasions to but day. and COVID little discussed smokers think reminder. we’ve nicotine this quarter, pandemic, adult in when you think it's it, added Remember, a first I about we we the think worth saw what in

of that you effect exacerbated saw to As we nicotine come and pandemic came inflation. would day. out I was some their think out occasions mobility back you the of increase, by expect those of cumulative of the COVID And

nicotine of exacerbated day had occasions out their by cumulative back inflation. and we So coming

I saw go similar and tobacco back it think history their their the new bit to pressure. at you see in occurrences cigarette consumer adjust ’XX, when What similar adult economic them we takes normal at situation. And you there. you and best of it ’XX a So extreme ’XX, it's under the occurrences adult with typically, look time about look consumers, And bit where for see consumer basic we the was occasions see ’XX, to think ’XX, you ’XX returned to in nicotine in can the and it, day. a to and

is right coming what a on I inflation So seeing even now, basis, growing. though cumulative down we're still it's think

So still under is the pressure. consumer economic

we're first and looking with And where behind a areas aggressive consumer and Marlboro quarter of recall put discount. results as saw the investments of in under couple menthol tenth picked those to the with saw we we we see extra pleased You competitor that some investments pressure pockets the you a where get up offerings, quarter-over-quarter. of extremely a

on And initiatives NJOY some drive remarks, prepared your have touched that you helpful. Thanks, in to that's you of the growth.

on and Now about months, that elaborate that business the the from brand? opportunities efficiently? the NJOY for where two And you've brand you are coming you just how the behind investment need level thinking you'll operate see the the quarters over owned you contribution more to make can to of

the thanks question. for Yes,

quarter, month. You're and right. was we've There surpassed for another a now results month the the in

filling and Our the pod-based on the heard well distribution as focus you as will gaps product, visibility. be NJOY, ACE my remarks,

carry that, X,XXX carry currently characterize devices. distribution pods three stores SKUs only but and all top to pod Just in ACE about the XX,XXX no stores

be at smokers will to gaps enhancing Ace's So equity brand focus the awareness both improving while vapors. and filling amongst on those and brand visibility, and time increase adult appeal same distribution both, the

Great. Thank you.

Thank you.

question our from Bonnie Herzog Goldman And next with we'll Sachs. take

thank right, everyone. Good All you. morning,

Bonnie. morning, Good

question a your had I on guidance.

left darn growth guidance this this months given X% your X% remains wide, which EPS year. reaffirmed only five You of to pretty year, especially

to negative lower second would end growth of EPS come you So guidance, you cause implies to I what low at that headwinds the in in single-digit which this, guess your do half? I'm and trying understand see the

Bonnie investing spending. behind Well, certainly distribution highlighted be and for that brand have the you as NJOY we we’ve we'll equity expand

for think our very flexibility other is, to necessary. and them consumers look, right be is extreme economy the I under we've consumer want dynamic for we the and is cigarette you to pressures, the that there thing and the highlighted adapt adult if now,

and cigarette think we'll to, consumer see So from the you will, how more economic see I standpoint. a if economy returns an position we'll comfortable adult how of progresses the

you that makes investments. sense. flexibility your of have guess some mean, I with Okay, I

of last investment up year? you this can expect your you So to us versus a I'm much Billy, give year how step sense curious, just

go increase mentioned, as just adult won't we'll I for brand equity cigarette be I enhancing and be, we'll distribution. then reasons. vapors amongst for into looking competitive Certainly really Yes, the adult and details to awareness both consumers,

new both, filling expanding then improving distributed visibility as as distribution it's stores and gaps, in well currently where to So ACE the of stores.

And you you but I gaps XX on your asked relative I the the for the changing, the just to final given me, hear price keeps been I deep this given it's Okay. like be are question I've before, mentioned maybe which one years. know widen. doing. continue guess just think discount it's maybe widest and on consumer manufacturers I for just then guess I'd it strategy costs what might then how widening, to the now

Billy. Black Just curious certainly, might be Thanks, to down to trading. promo strategy hear how you your behind leveraging flexible minimize with Marlboro then pricing strategy your and potentially

thanks. to you Yes, where additional and you saw careful some like investment about of for you necessary result we the I'll I those from sequentially. going first to increasing but We not can of be areas was future quarter. talk tent And second highlighted Marlboro a see significant thought pricing, think

advanced want to allows remind the around we efficient that RGM the can national very spend be in and is low RGM with we So monitor analytics you we price gap so that tools that tools, that move spend that the a seeing would even price I flexibility, that very, you're if but have U.S. down and on level a to gap the us and necessary, around basis,

moderate the you to for total see you And From of consumer instances of I as very about discount So is it through you premium time. this in then we're see in It's grow thinking continues the perspective, how and standpoint history that Pamela, that premium that's highlighted a the under seen Marlboro we've well. it. itself, from you segment. performing industry a of when pressure grow, see see

you. Thank

you. Thank

Vivien our And Cowen. from Azer question with take TD next we'll

Good morning.

Good morning.

how kind oral for given of degradation seen to can think Thanks. like on support the was of Quite in see your just we've on! on I margins about should the you please. back half? improvement tobacco wondering, So oral year-over-year in Sal, some tobacco start to we margins, I'd comment So nice multiyear

we're Yes, in happy margin not OTP I'm I about performance will going agree be with to future talk you, the quarters. with the careful to really segment.

I You margins, know in OTP for said over my as XX%. remarks year-to-date, were

I of talked as we we've XX% pricing of on remarks, seeing, basis. the a about year-over-year increased success see share And on! grown you're think our where What quarter. each is earlier in you

on! performance. the is but progress OTP overall marketplace, think we're I in of about really shows on! that the strength excited the making and So the

sequentially, Do you the offerings. Marlboro of advance to Certainly. Thank need question, heightened to then contemplated? think given competitive – you marketplace in follow-up out menthol the from called competitive backdrop, had Billy, you that you you the for kind premium And Black activity competitive that my that. share some for just longer market of you see Gold the nice Marlboro do the have than despite originally

gap Look, we Black, The – portfolio. family out portfolio. think the while. rounds has the in that the that's Black around to gives saw portfolio as We an certainly a It that. filled we it our this Marlboro addition and Marlboro team been a

Black, So pressure. of are about can if XX% certainly a the consumer a gives about land Marlboro safe overall a they standpoint from think under place of it to economic place as Marlboro, you or and that

as shrink times. seen previously, you've like through And to when we to we're able mainline tools this, gap the use

can Marlboro about and pressure, very under to which for them a when is the they land then are changes, and it's that very a we is, place that having shrink gap aspirational for still So pleased brand in the mainline. as to cigarette the the strong, we're it situation keeping mainline because category. Having Marlboro economic consumer, place

Certainly. Thank much you that. so for

Thank you.

Smith take our from we'll Stifel. question Matt And next with

morning. good Hey,

Good morning Matt.

investment using enhanced that we the volume the on ways wanted commentary I efficient you tools environment – as business. activity, are the with economic more I an with to to in consumers, of sold digital to conditions And your more be even engage just promotional about expect follow-up in in Billy, level cigarette your now improve.

it think volume under Yes, I of as wouldn't promotional. more

to close promotional cigarette adult we I in has to premium the I spend. the individual both, investments need in second think growth that that, get to it. and the And as [ph] we're space. while being Marlboro realization space, the experiencing effective think that it that the get it's bump as consumers we Marlboro more to subsidizing can XXth don't seen efficient of made with not the trying consumers it, you've the price needs first as with cigarette and that sequentially It's

if you've and in growth the The And should year? ask second that. the the where remains remind promotional for even us we question on distribution stands I the how brand. you activity. as on! thank Can brand today on drivers half Okay, terms on! there about growth for could growth of of robust another in think reduced you the the oral of

stores we I from as in fluctuations distribution it it want think we add got we but small Yes, we've if stores may got the while to additional want a you to we've and decide distribution, it. see where and

recall a You’ll that beyond to grow. were basis we from it manufacturing continues where capacity constrained

though that for move talking I the been have new we would about been it we've still say consumer. forward, about a as while, to it growth talking as it's even guys you continues, it and fairly

specifically trial. continuing the product. is to drive enjoy awareness and it Once consumer tries it, they the So

So as consumers the growth will as the new the that's achieving come transition. category to in they success where

amounts, important be about smokeless currently but to consumer, moving oral large I moist it's looking to dippers you it's at that in tobacco. that the the think that time, allows and tobacco consumers talking it cigarette through to also rejected when product to remember that previously transition you're available are specifically think consumer

that you Thank on. Billy. for I’ll pass it

Thank you.

question Andrei Condrea We'll take next our with UBS. from

Thanks from everyone. mind. questions. my you morning for taking good if please, Hi, me Two don't

attributed three that Cigarette stable the from saw your past think Firstly, the Gold NPS? when the increased Black How from to was that years. four basis, looking you. and just Thank for instance, activity much trend promo could on U.S. bucking sequential do be Marlboro of a discount to at you your industry, we

know I promo. it specifically to I if attribute increased don't Yes, would

and place land, the look them for U.S. specifically highlighted we've they Marlboro. to you been land, as a the both, really to to adult I expensive the and see so versus consumer see you we've Marlboro quarter. certainly second As and in in that engage pressure under the that returning, cigarette less to leaving think to and with can places first with than past, where successful you, in continue We is result give economic

secondly, are a market medium-term, more those in on products you're numbers Makes NJOY, problem enforcements illicit as sense, flagged basically of the you the is as with a well, and And by this bit What your peer thank to, harder and vaping get area pushing can you. do said into but one peers. more improve now down?

Yes, really I think its continued engagement, as top so both with the congress priority. as FDA, their this well making

aged not saw You of use in focused come that that FDA enforcement, authorized. essential with are down, really it's flavors marketplace illicit under on the e-vapor its but the products

recent And the in you in in the was the products product most that list survey youth with marketplace. the of most youth so saw popular national tobacco following

are their Now experiencing certainly they would authorized to more those the products Even vigorous a doing stuff what it of and that encouraging enforcement, marketplace it at the list they those the would the – that if to but isn't review, stepping have that publish change just in marketplace. up started we're under what be while because needs are are marketplace. enforcement level they in trade, is enough the

it I’ll pass clear, on. Very thank you.

Thank Jain with our you. take next from We'll [Operator Instructions] Gaurav question Barclays.

Billy. Hi. Good Good morning, morning Sal.

morning. Good

of questions from Hi. me. A couple

clearly e-cigarettes. growth, disposables the on is industry e-cigarette cannibalizing closed end one are So

also you is us you So you which the application are of – gen ACE which next NJOY you product, the are and not can the just daily where the filed. context, tell that you PMPA have why product? with mentioned have launching NJOY In

down. Yes, break so let's that

the first in know that as the So so pod opportunity. you the I only see and FDA ACE And of NJOY the a part, you that consumers an we received think remarks, certainly heard e-vapor category, large if you about think is pod there's the certainly authorization. base has

we're you the marketplace the illicitly in are think is disposable the factor the marketplace. of least the about what at side, with that flavors seeing in growth, When

marketplace, out FDA see the enforcement receive the products place opportunity steps as in for again, we the able because to illicit disposable, of and was and for we come up that authorization potential enforcement take NJOY those So their see space. growth certainly the

is illicit feel are large cleaned base, and illicitly are that plethora the of like on appropriate pod we But marketplace in flavors base, that the until focus up. the consumer the flavors

the following were of the closed that. age you referring recently you we standpoint of excited We're assessing think that I it and to, a technology. just From restriction about timing we're know

by that know pod that based a what's I in that It’s successfully we of mind would certainly year. end so You – navigated think navigated about welcome this onboard the only is it. we the the target NJOY have regulatory the that exciting the it was has But team from it's product regulatory.

So They by we're that excited. the application following would the we had target started again, and of the end year.

when considering access this you IP. their to you. June, have away from would gained you have Juul I Sure. you And would that you can surprising, us update have NJOY, on all – patent Thank also walked very litigation they filed against which thought found I

just there? you us could happening help So understand what's

the merits it, it for competition really the a of spiteful pod We has Juul of acquisition. interesting step to litigation health. to like after we're an respond vigorously appropriate based public we looking and The back that believe you the if against us determined think suit of active brought is from the FDA we completed protection it's of it only meritless from really it, litigation, standpoint desperation you we feels the think a Sure. product that that is If from the will. that. bit only about if The the

meritless. as it see we So

Would some one is also you at NJOY internationally targeted. I sneak Okay, on! you be sure, PLUS in one, of time? in just even mentioned looking could if because and that if it last you at launching Sweden will launch point

of Yes, end still U.S., to the distribution any to in currently existing stores year, international, the know the you approximately stores come you back XX,XXX plans gaps by expanding as in and this on the we'll focus appropriate. on distributions and we the mentioned, it's international when

so thank you Well, much.

Thank you.

closing remarks. questions the to would there back appears be over Mac any time. call like to at I this to no for And turn further Livingston

for you your morning. Thank time this

to any questions, Relations If please a the great team. out day! to have free up Investor you feel and Thanks have follow reach

for today's concludes your you Thank This call. participation.

You any may time. disconnect at