“This places us well on track for our target ratio of around two times by the end of 2026, with buybacks to be considered, subject to Board approval, once we are within sight of this goal.”

In context

“nts very robust growth of approximately +7% to +8%. As reflected in this forecast we expect another robust delivery in Q4, despite a more challenging top-line comparison on the mix of shipments between categories. We also target another quarter of adjusted gross and operating margin expansion, including a planned increase in commercial investments behind our smoke-free brands. Q4 net financing costs are likely to be sequentially higher, notably given the mark-to-market benefit in Q3 from the volatility in interest rate markets I mentioned earlier. Our expectations for strong operating cash flow of around $11 billion for the year are unchanged, and factoring in the most recent currency moves we now target a 0.3 times to 0.4times improvement in our net debt to adjusted EBITDA ratio in 2024. This places us well on track for our target ratio of around two times by the end of 2026, with buybacks to be considered, subject to Board approval, once we are within sight of this goal. In conclusion, we delivered another outstanding quarter reflecting the strong underlying momentum of our business coupled with our proactive steps to support superior growth in dollar term. We are delivering on all key metrics, with best-in-class volume and pricing, in addition to substantial margin expansion and earnings growth on both a reported and dollar basis. We are raising our growth outlook for an exceptional 2024, with growth rates comfortably above our 2024-2026 targets. While the industry dynamics affecting combustible volumes may be specific to 2024, the key drivers of our growth are both structural and sustainable. Legal-age smokers are looking for smoke-free alternatives and we are building strong and profitable premium brands with IQOS, ZYN and VEEV to lead the smoke-free c”