“This includes a forecast decline of 3% to 4% in H2 against the high prior year comparison I mentioned with Turkey accounting for close to half of the decline.”

In context

“n, grew significantly. Cigarette volumes declined modestly in Q2 following the except exceptional growth of recent quarters. This was primarily due to contraction in Indonesia and in Turkey where we experienced supply chain issues following a change in regulatory requirement. This resulted in a temporary loss of volume and share with some associated inventory write downs. We expect gradual recoveries for the remainder of the year, though two year on year comparison are still likely to be affected. In Indonesia, despite a good share performance, a growing illicit segment is impacting both the legal industry and our volumes within it. And this is also likely to extend into H2. We expect our cigarette volumes to decline around 2% for the year, more in line with the historic underlying trend. This includes a forecast decline of 3% to 4% in H2 against the high prior year comparison I mentioned with Turkey accounting for close to half of the decline. This also factor the continuation of decline Europe and Japan as smoke-free product grows strongly and the dynamic in Indonesia and in Egypt where the recovery of the main local competitor is ongoing after previous supply constraint. As a testament to the resilience of our combustible model, we are still targeting combustible gross profit growth in H2. Supported by pricing, and cost efficiencies. For smoke-free products, we anticipate continued double-digit volume growth in H2 including the expected reversal of H1 phasing benefit on IQOS. However, given cigarette dynamic, it is possible that H2 may see modest decline for total PMI volumes. Importantly, with the forecast full year increase of around plus 1%, we continue to target our fifth consecutive year of total volume growth as we do f”