“We expect robust growth in HTU shipments, adjusted in-market sales, and overall region organic net revenues in the second half.”

In context

“vailable to around 70% of IQOS users in the region, and the expansion of our two-tier portfolio. As an illustration of its progress, TEREA is already close to 100% of our HTU in-market sales volumes in the first launch markets of Spain and Switzerland. Our second quarter HTU share increased by 1.6 points year-over-year to 9.0% of total cigarette and HTU industry volume. While sequential share is, as usual, optically affected by the seasonality of the cigarette category, adjusted in-market sales volumes continue to exhibit robust sequential growth, and reached a record high on a four-quarter moving average. This reflects strong year-on-year growth of 20% in Q2, outstripping the 11% growth in HTU shipments, which were affected by some residual effects from the inventory dynamics seen in Q1. We expect robust growth in HTU shipments, adjusted in-market sales, and overall region organic net revenues in the second half. We continue to be encouraged by the increasing number of European countries adopting multi-year excise tax plans, with clear differentiation of smoke-free products. Over half of EU member states have now passed multi-year plans. Also in the EU, a number of member states are currently transposing the Delegated Directive, withdrawing the heated tobacco product exemption from the flavor ban into national legislations. The ban is scheduled to come into effect on October 23rd, and we will be adjusting our HTU portfolio as required, in line with this transposition. While short-term volatility is possible, we do not expect a significant change in the structural growth of the category. To give some further color on our continued progress in the region, this slide shows a selection of the latest”