“As previously communicated, we target an organic increase in SG&A below the rate of net revenue growth for the year, while still supporting our smoke-free expansion with continued commercial investment.”

In context

“e drivers were very similar, with double-digit organic top-line growth built on positive volumes, smoke-free category mix of more than plus 2 points and strong pricing. Turning to operating income, we delivered impressive Q3 organic margin expansion of plus 90 basis points, and plus 110 basis points in dollar terms. Gross margins increased organically by 80 basis points, and by plus 70 basis points in dollar terms. This was again driven by our higher margin smoke-free business, pricing and ongoing productivity savings across the value chain. Moving now to SG&A. Despite a planned step-up in commercial activity, our organic cost evolution was essentially in line with top-line growth, with plus 40 basis points of margin expansion in adjusted dollar terms supported by cost efficiency actions. As previously communicated, we target an organic increase in SG&A below the rate of net revenue growth for the year, while still supporting our smoke-free expansion with continued commercial investment. We delivered an incremental $180 million in gross cost efficiencies in Q3 reaching almost $490 million year-to-date, with initiatives notably focused on manufacturing and back-office costs. While only the first year, we are progressing nicely towards our 2024-2026 target of $2 billion in gross savings. On a year-to-date basis, our adjusted operating income margin evolution was also very positive with plus 190 basis points organic expansion and plus 40 basis points in dollar terms. We are well set to meet our full-year objective of expansion on both bases. Turning now to our IQOS business, which is celebrating the ten-year anniversary of its first launches in Japan and Italy. IQOS is the world’s leading smoke-free product, generating over $10 billion in annual net revenues. Notwithstanding”