“We continue to target adjusted gross margin expansion for both smoke-free product and combustible, and adjusted OI margin expansion for total PMI, all in both organic and dollar terms.”

In context

“U.S. dollar growth forecast. This is supported by accelerated total volume growth and pricing and reflects the very strong outlook for ZYN, despite short-term supply constraint and the increasing profitability of IQOS due to operating leverage, manufacturing efficiencies and pricing. We continue to target close to $15 billion in smoke-free net revenue for the year. Taking these factors into account and robust combustible performance, we are increasing our organic net revenue growth forecast to a range of plus 7.5% to plus 9%. In addition to strong top-line growth, the positive smoke-free mix effect, combustible recovery and further cost efficiency enable healthy margin expansion. We are accordingly raising our organic operating income growth forecast to plus 11% to plus 13% for the year. We continue to target adjusted gross margin expansion for both smoke-free product and combustible, and adjusted OI margin expansion for total PMI, all in both organic and dollar terms. Consequently, and also factoring a lower forecast net financing cost, we are raising our forecast for currency-neutral adjusted diluted EPS growth to plus 11% to plus 13%. This translates into a range of $6.33 to $6.45 including an unfavorable currency impact of $0.34 for the year at prevailing rates. The increased currency headwind versus prior guidance is primarily due to the Q2 impact already described. As shown by the increase in our forecast U.S. EPS growth to plus 5% to plus 7%, the underlying strength of our business and proactive mitigating actions have allowed us to more-than-compensate for this, and we expect to deliver on our objective of strong growth in dollar terms. Focusing on the second half in more detail. We expect another strong performance driven by excellent IQOS adju”