“We said it in the beginning, we expect a positive contribution on margin evolution for the year from the IQOS business.”

In context

“ear, although in the second part of the year, we are going to be facing comparison where inflation was starting to kick in, so that's going to have some impact. But we knew that a number of other headwinds would start to abate, and here I'm talking about the disruption on the supply chain and among other things, things connected with air freight, the cost attached to the launch of ILUMA, and the fact that not everything was optimal. So, we started to see improvement in Q2 as expected, and we're going to continue to see improvement in the rest of the year. And then what we see playing in Q2 that we expect to see playing in the rest of the year are the fundamental positive drivers that we have for our margin. First of all, the fact that IQOS growth is having a positive impact on our margin. We said it in the beginning, we expect a positive contribution on margin evolution for the year from the IQOS business. Remember, we have a higher gross margin rate on our consumable for IQOS. So, as we are growing IQOS, that is having a positive impact. There is no - when it comes to our smokefree business, another driver that is positive for our margin, which is ZYN, and ZYN in the US, which is also accretive to the margin. You don't see it in the organic reporting so far, but it's going to start to kick in in Q4 and we expect to have another nice positive. And then the third element that I think you see of course nicely in Q2 is our pricing power. We see today very clearly on combustible. We have some headwinds that are temporary coming from Germany and Japan on heat-not-burn, but we retained pricing power, which is positive for the long term. And these are good elements. Of course, in front of that we”