“While we don’t expect the exceptionally strong Q2 pricing of 9.4%, which benefitted from timing factors, to be fully replicated in H2, we now forecast a full-year increase of 7% to 8%.”

In context

“epped-up pricing. Our smoke-free transformation continues to progress rapidly. Due to the continued impressive performance of IQOS, heated tobacco units comprised 16.4% of our total shipment volume in H1 as compared to 14% in the first half of 2022, despite a resilient cigarette category. Including oral smoke-free products, this would be close to 18%. Powered by IQOS and ZYN, smoke-free products made up 35% of our adjusted net revenues in H1, compared to 30.9% for the same period in 2022. IQOS devices accounted for approximately 4.5% of our H1 inhalable smoke-free net revenues. Focusing now on combustibles, our portfolio delivered strong organic net revenue growth of 7.4% in Q2 and 5.2% in H1. This reflects strong Q2 pricing, with a notable contribution from Indonesia and the Philippines. While we don’t expect the exceptionally strong Q2 pricing of 9.4%, which benefitted from timing factors, to be fully replicated in H2, we now forecast a full-year increase of 7% to 8%. Our cigarette category share grew by 0.7 points in Q2 on a year-over-year basis, including contributions from Duty Free, Egypt, and Turkey, and by 0.1 point in H1, resulting in only modest volume declines. Our leadership in combustibles helps to maximize switching to smoke-free products, and we have fully achieved our ongoing objective of stable category share over the last 18 months, despite the impact of IQOS cannibalization. The combination of our stable share in combustibles and the continued growth of our leading smoke-free brands, positions us to deliver total market share growth over time. We captured 1.1 points of international cigarette and HTU share in Q2, and 0.5 points in H1, with notable contributions from Turkey and Japan. Impressively, despite increasing competition in man”