“Looking ahead to Q4, we expect notably strong reported and organic OI growth as certain inflationary impacts are annualized, and we increasingly benefit from an optimized ILUMA supply chain and consumables.”

In context

“t continues to assume around $150 million for incremental investments in the US, and our Wellness and Healthcare business. It also assumes around $1.2 billion in net finance costs, which includes higher interest on variable debt, partly offset by better returns on cash deposits. As previously mentioned, our forecasts do not assume any contribution from a potential favorable ruling on the Germany tax surcharge. Focusing on the second half in more detail, we expect strong performance on all key metrics as smoke-free products deliver an increasingly positive impact. In Q3, we forecast high single-digit organic topline growth, with HTU shipments of 31 billion to 33 billion units, and adjusted diluted EPS of $1.60 to $1.65, including $0.06 of unfavorable currency at prevailing exchange rates. Looking ahead to Q4, we expect notably strong reported and organic OI growth as certain inflationary impacts are annualized, and we increasingly benefit from an optimized ILUMA supply chain and consumables. As I mentioned, Swedish Match will also be included in our organic figures during the quarter. The exceptional growth of ZYN is clearly margin-accretive, as visible in our adjusted H1 figures. Turning back to our results, our total shipment volumes increased by 3.3% for Q2, and 1.1% year-to-date. HTU shipment volumes grew by 26.6% in Q2 to reach 31.4 billion units, notably driven by continued strong performance in Europe and Japan. In addition to fundamental strength, HTU shipments to Japan were boosted in Q2 by around 2 billion units as we increased sea freight, with corresponding increases in inventory levels. As I mentioned earlier, total PMI adjusted in-market sales volumes of HTUs increased by 16% in Q2, continuing the excellent trend seen in Q1. H1 shipment volumes grew by 18.5%. N”