“While short-term volatility is possible, we do not expect a significant change in the structural growth of the category.”

In context

“h 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 key city offtake shares. The success of IQOS continues across a diverse range of geographies from Western, Southern, Central, and Eastern Europe, including markets with and without ILUMA. Despite the denominator effects of the combustible category I just mentioned, share results remain very strong. We are very pleased with trends in Rome, showing a sequential step-up to 28% share following the ILUMA launch. Robust progress in London and Munich also bodes well for these two key markets. While the Q2 2022 comparison for share in Vilnius was helped by the popularity of certain bundle offers, the share of over 40% remains impressive, and underlying offtake continues to grow. In Jap”