“We remain on track for full year organic margin expansion in 2026.”

In context

“ted to the conflict in the Middle East. With regard to SG&A, as planned, we continue to invest in control program, scale and innovation, both internationally and in the U.S. While Q2 is likely to see further strong year-over-year investment, we expect this to moderate in H2 and for SG&A progression to be organically at or below the level of net revenue growth for the year. Currency provided a meaningful tailwind of plus 110 basis points, supported by a favorable comparison to transactional losses in the prior year. Overall, while this quarter had the slowest expected organic growth of the year, we continue to invest in our smoke-free portfolio supported by efficient back office and manufacturing cost management, including approximately $150 million of gross cost efficiency realized in Q1. We remain on track for full year organic margin expansion in 2026. Turning now to our worldwide smoke-free business, we delivered IMS volume growth of around plus 11% in Q1, approximately 3 percentage points above the industry smoke-free product growth rate in market and category where PMI is present. This reflects our ability to capture over 70% of industry growth in this market as compared to our share of around 60% and driven by the strength and scale of our multi-category portfolio. We remain focused on expanding the strengths with 3 geographies, adding another category to reach 55 multi-category markets and 2 new markets for smoke-free products in total to reach 108. This includes the launch of ZYN in Portugal and Kenya and VEEV in Egypt. Within smoke-free International, IQOS delivered another strong quarter with adjusted in-market sales growth of p”