“With shipments now primarily driven by consumer of tech, we expect a broadly similar level of shipment in Q3 as in Q2, factoring in the possibility of a few days adjustment to wholesaler and this inventory, as the situation fully normalized.”

In context

“as we increasingly focus on legal edge smoker and vapors who have not yet switched to the category. Q2 shipments increased plus 41% year on year, reaching 119 million cans. As with any out of stock situation, quarterly shipments are subject to volatility. Restocking of the value chain was effectively completed in H1, with the majority of this taking place in the first quarter. We estimate the total net impact at broadly 40 million cans for the year slightly below our initial expectation. This factors in the good news that retail availability is now approaching normalized level with a lower scarcity premium in retail price narrowing the price gap to competition. Importantly, sales velocity are accelerating and with 36% of the growth in June, this bodes well for the second half of the year. With shipments now primarily driven by consumer of tech, we expect a broadly similar level of shipment in Q3 as in Q2, factoring in the possibility of a few days adjustment to wholesaler and this inventory, as the situation fully normalized. We continue to target full year US shipment of 800 to 840 million cans, including a sequential step up in Q4. With our US production capacity increased ahead of plan, and now well set for this year and beyond. We are incredibly excited to drive ZYN and the overall nicotine pouch category potential over the coming years. Having covered Europe, Japan, and the US in some detail, let's look at the rest of the world. In most markets, both the nicotine pouch category and our multi-category presence are nascent. Both ZYN and VIV will leverage on the strength of IQOS, where Q2 adjusted in market sales accelerate accelerated to plus 19.3% growth with broad based progress, including Egypt, the Philippines, and Indonesia. While pouch and e vapor volumes are naturally very small across this market at”