“While the biggest step is behind us, we expect further category volatility in H2, notably around the excise change in October, and we will expect similar consumer behavior patterns, including pantry loading and subsequent normalization.”

In context

“Emmanuel Babeau: Despite implementing the largest increase in the market, IQOS adjusted category share held in the high 60s and adjusted IMS recovered nicely through the quarter to essentially match Q1 monthly volume, excluding pantry loading, a further testament to IQOS resilience. Despite these factors, IQOS-adjusted HTU share was stable at 31.8% in Q2 or up +0.9 percentage point excluding pantry loading, supported by our tier portfolio, with SENTIA playing an important role in capturing more price-sensitive TEREA consumers. Importantly, underlying demand remained robust. The heat-not-burn category continued to represent more than half of total nicotine offtake, and we expect this to continue growing over time. While the biggest step is behind us, we expect further category volatility in H2, notably around the excise change in October, and we will expect similar consumer behavior patterns, including pantry loading and subsequent normalization.”