“In the second half of the year, there are some tailwinds that we expect to see. Some have already mentioned, right, the two extra shipping days that occurred in the back half of the year, the expiration of the legal fund in the fourth quarter.”

In context

“his year? Or are you just assuming flat profitability and you can still hit your EPS guidance without smokable profits growing? Sal Mancuso: Yes, there's a lot to unpack. So I want to make sure I get to all your questions, Bonnie, if I don't, please follow up. I'm going to work a little bit backwards. So let's talk about smokable for a minute. Remember, we are managing that business to maximize profitability and balance investments behind Marlboro in our smoke-free products. And we're really pleased with the strong net price realization. We're pleased with the strong margin performance. But during economic difficult times for our consumers. We are going to support them and we're doing that, I think, pretty effectively through our RGM strategies which include investments in Marlboro Black. In the second half of the year, there are some tailwinds that we expect to see. Some have already mentioned, right, the two extra shipping days that occurred in the back half of the year, the expiration of the legal fund in the fourth quarter. We'll also be lapping the investments we began to make in Marlboro Black last year which really is an important tool to engage with consumers who are facing difficult economic times and maybe more price sensitive. So we feel really good about the progress in the smokable segment and the progress going forward with that as well. So that's the smokable segment. As far as the back half of the year, I think I've talked to you about and talked about the individual items that were that will be tailwinds to our EPS growth in the back half of the year. But we don't manage the business quarter-to-quarter. We are managing it for the long term. and we're really pleased with the financial progress. But volumes are down and that will drive controllable costs up on a per pack basis. And part of margin”