“This forecast includes notable capability investments in the U.S., but as mentioned at Investor Day we still expect to deliver strong double-digit operating income growth in this market.”

In context

“cluding a fourth consecutive year of total volume growth and mid-single digit combustible pricing. We also forecast an acceleration in smoke-free gross profit growth from the organic plus 19% delivered in 2023 as IQOS profitability expands and ZYN’s excellent economics continue. We expect smoke-free to again drive the lion’s share of our forecast organic OI growth of plus 8% to plus 9.5%, notably given the enduring cost pressures and negative geographic mix in combustibles I just mentioned. This naturally implies organic margin expansion, even factoring in the ongoing technical dilution impact of third-party manufacturing in Indonesia. We expect a meaningful organic improvement in overall gross margins excluding technical impacts, and a very limited currency impact on adjusted OI margins. This forecast includes notable capability investments in the U.S., but as mentioned at Investor Day we still expect to deliver strong double-digit operating income growth in this market. As flagged at last year’s Investor Day, we anticipate an increased net financing expense this year as debt is renewed at higher rates. We forecast a range of $1.3 billion to $1.4 billion, as compared to $1.1 billion in 2023. We also assume a higher effective corporate tax rate due to Russia’s suspension of certain double tax treaties and earnings mix. These tax and interest factors combined impact our currency neutral adjusted diluted EPS growth projection by around 2 percentage points. Accordingly, we forecast currency neutral adjusted diluted EPS growth of plus 7% to plus 9%. This translates into an adjusted diluted EPS range of $6.32 to $6.44, including an unfavorable currency impact of $0.11 at prevailing rates. This notably includes a net favorable impact of $0.13 related to the reva”