Thank and gentlemen. you, welcome Nick, ladies and
quarter reflect The include and performance. better-than-anticipated to underlying business results assumptions pricing our results costs quarter. timing third of previously to continued the compared communicated strong the Our for
VAT were period. and Our assessment taxes by final a by reported Tax Russia an on in million, the excise related to impacted XXXX of the results the quarter after-tax $XXX to charge in Authorities for Moscow XXXX
press on this release. in charge detail is today's Additional provided
volumes X.X%. third Total in declined by the shipment quarter
tobacco tobacco cigarette sales due volume our unit growth. quarter movements volume distributor during of in-market heated by heated lower XXXX, unit by volume, favorable inventory the X.X%, declined the the impact Japan net offset strong Excluding estimated to third inventory partly of reduction total reflecting in primarily
timing was in down to Pakistan, well three two-thirds which, due volume total XX%, broadly in announcements related. our two by largely as the timing In volume industry excise the markets, last in-market decline price impact were increases. Approximately to reflecting tax cigarette line of as the with of decreases of increase the of year, sales was approximately the decline compared
gaps impact In was increases share, pack Turkey, the our basis, competition. on our cigarette totaling In as the our primarily declined, price brands competition’s, a price to year, this and lower share, volume or market. the as lower our cigarette which vis-à-vis well per price two increases mainly disproportionately TRYX total roughly between due timing of mainly given Indonesia, decline of XX% due to volume weighted-average reflected our the impacted widened a
XX tobacco Heated in quarter. unit volume shipment the units reached billion
Eastern movements, and HTU of with XX.X our our Excluding HTU net EU of inventory in-market XX.X%, reduction XXXX units. driven HTU Europe inventory quarter by sales in volume shipment primarily in-market by billion Regions. favorable the in the the in sales to third-quarter volume impact increased volume was Japan, related line
RRP favorable net combustible currency, net increased partly billion in essentially offset for $X.X volume. cigarette lower tobacco have noting excluding Third-quarter by by $X.X portfolio, driven It revenues the total of pricing HTU X%, over higher our shipment and XXXX the volume that our reached revenues. shipment PMI's full-year September of billion net by quarter, XX% total. reached net or revenues RRP is year-to-date worth revenues
Indonesia, margin X.X% markets by operating by recorded relatively operating and increased the X%, favorable income income of Philippines, reflecting in basis, by We related driven in the a quarter volume currency-neutral with tobacco Russia, contribution margins, IQOS adjusted region. was primarily and despite the strong combustible RRPs of was increased behind Mexico, investment while basis approximately EU the points. from driven grew of notably Turkey. to margin incremental geographies achieved Germany, million net mix the XX quarter, a geographic in $XXX high HTUs, notably This adjusted by On expansion pricing variance unit
adjusted also Our by in per quarter-end. interest, Philippines the sizable diluted adjusted operating The compared not from margin operating share quarter and to X.X% the as incurred certain the reflected initially third of growth adjustable with earnings increased example, high expenditures Adjusted benefited income were excluding EPS currency XX%. quarter markets interest contribution from in timing with by the costs non-controlling income relative currency. lower growth planned a diluted non-controlling notably neutral the for of for
Our for offset the reflecting cigarettes, lower share, total tobacco was quarter, higher in third which excluding X.X%. China and market units, international share heated by the for share U.S., essentially reached stable
of in the Our out-switching in Indonesia, particularly lower declined Russia, and X.X reflecting IQOS, Mexico, points, share, category cigarette smoker EU and by notably to Argentina, share with adult the Japan Korea, coupled Turkey. region, continued
in the the increased by The Importantly, driven price Indonesia the widened of Arabia, reflects to Philippines, XX.X%, Sampoerna of notably Germany, particularly market. and Saudi Marlboro X.X A, share the gaps points competitive of decline at a and Turkey. cigarette category primarily between by impact bottom mild Russia, share the brand,
recall, our in tax XXXX a Indonesia that As materialize. excise increased in of we increase prices you did ultimately anticipation may year late not last
taxes largely competitors widened price brands their our with particularly government's year. decision unchanged, this following to leading prices, to Our leave the gaps excise maintained cigarette the
XXXX XX% increase has been average regulation an outlined recently issued, minimum in tax XX% the government price. in roll a of excise band with exercise yet formal cigarette no the Although, and
relatively however, difficult has announced each the volume steep gauge tax XXXX, individual broadly historical the potential the do with in it the tax XXXX. increase while is anticipated is in line with in stack increase for and not share pass impact levels. tax year, average in As percentage no two-year the yet excise of to is increase the the accurately note, government context that on We
or more the total balance some a to various the end. $XX.X IQOS now that X.X as We IQOS that estimate IQOS, million conversion. XX% detailed have approximately and with stages performance. discussion Turning smoking users in there of of were of estimate switched RRP users We million to of quarter further stopped
in Arab IQOS in States. markets, the the United in XX and commercially is now recent available launches following Emirates Belarus, United
by We through U.S. Altria. the arrangement launch are excited IQOS in with of the our commercial particularly
first XX initial to Georgia, store protection lead currently is only U.S. retail food pathway product PMTA opened health". men as, in the alternatives the Atlanta, milestone market "appropriate heat-not-burn drug million the the the for public market through providing of smoke. of better a authorized and marking The administration's IQOS and IQOS in has who historic the women U.S. in the on
As you are aware, the with Altria have ended. merger discussions
the to focus a launch with with closed, the we to free ongoing market. towards an definitively smoke cigarettes. This journey opportunity help IQOS have is smokers with switch adult both the DUO. on family Altria, enhanced IQOS X more designed the U.S. month, from IQOS was another in important chapter maximizing our features this latest step future relationship and took seamlessly edition of Last we companies Although, will in
IQOS uses X without DUO two allows consecutive holder. recharging the
it's strengthening compared faster IQOS the and IQOS our in charging plus. commercially currently leadership smoke While IQOS X.X position. year, significantly by end further X available of where be in available is is to is time this most Japan DUO IQOS rolled will markets X, free out and
combined would be these At this fourth brand tobacco third up them. of through markets share markets, not the IQOS quarter. you HTU take collectively of In performance commercialized, yet excluding been level, where quarter many in HTU has six share in a the the our our distributed X.X% now brands me the nationally of from despite U.S., total in Let IQOS the largest of last being number year. brands the recorded in
share In for the appendix of reflects continued EU as IQOS in detailed region areas the XX% where market the more we at industry each doubled broad than markets in approximately representing strength HTU a reach quarter This to total presentation. are commercializing of volume, the across today's X.X%. end share included in of range growth
the share On point by a basis, to sequential quarter. second X.X increased compared
sales Given end summer increased seasonality, the reflecting industry sales quarter. second sequential this for momentum market sequentially volume higher versus X% favorable cigarette that point, of understates this To we believe the the by share impact performance HEETS. the HEETS of over volume
second in quarter HEETS to X%. Russia market X.X the X.X HEETS up by was consistent in share by our the the XX% adult quarter performance in pace smokers in with of over while a points HEETS increased the by strong with On its versus quarter, and share billion continued growth reach basis sequential increased IQOS points units. X.X to reach geographic sales expansion. share
second now quarter. IQOS estimated are We approximately the by of the to compared the market commercializing in half volume cities, total of end XX% at representing an industry
last of brands our off total tax step initiatives The quarter. price HTU we reach after performance. quarter HEETS was and HeatSticks for increased introduced the or by second up to On XX% trade a advance in points year adjusting sequential by during a Japan, estimated and the in continued share the to for X.X and of share the our that pay the loading drove X.X Xst basis, of October our for impact in points stable up increases. share In
the Importantly, reaching our during of share by off weekly end sequentially XX% take the over September. increased quarter,
share first of that Xst, of growth acknowledge the shares period in our week we ahead toward While been our consumer impacted continues may favorably October off this take the the month. of end the have by loading
HTU competitive as We increased progressed. the performance year are by share in of our the encouraged has face activity
accounting market approximately the category position. churn, IQOS number line-ups. believe reinforce will in HTU XX% consumables IQOS with to be IQOS DUO family's and devices line our share smoke-free competitive the XX% despite the of by growing only of extensions leadership for HeatSticks of around and While category This of contributed We the will HEETS SKUs. has launch remains recent leader X further complemented
area second Share In or are category. highly HEETS declined versus the also Korea, that competitive, third in quarter and share remains taste by for the down in was tobacco X cigarette also X.X present flavors heated quarter. sequentially the in related non-menthol dimensions the point an by basis. adjusted the HEETS points on new particularly category of
off flavor However, launches of line-up. segment of take we the to over recent early by the see expanded supported signs quarter, course stabilization the share HEETS that third in began
do upon tobacco of we regard, the leadership X IQOS's are this look position. to we and heated we encouraged to by While In forward of benefits DUO. trend, work build category's upcoming IQOS a reinforce this roll-out have lot the to
to our full-year now outlook. Turning
$X.XX are least guidance compared to today's noted our we reported in earlier. release, our The was exchange predominantly decrease, on least at in be to at to prior prevailing million rates of $XXX at July $X.XX. EPS the revising charge announced XXXX after-tax guidance $X.XX, press As Russia, XXth due diluted
guidance impact, exchange currency share. Our of rates, to an $X.XX per continues include approximately unfavorable at prevailing
and forma $X.XX least forecast earnings per diluted X% of adjustments continues versus tax reporting XXXX. adjusted share to items this of pro outlined a increase represent projected the on excluding currency-neutral slide, After at our our in
China excluding X.X%, an Our guidance assume decline in industry XXXX approximately the to U.S. volume and continues total of
recent As reflects X.X%, of X% outlook. a now previously. markets, result increases X% approximately revision This Philippines total solely shipment a notably cigarette volume changes and decline Turkey, we rate shipment the assume volume selected to in price cigarette full-year full-year our to of versus
We this continue our inventory on any basis. to full-year with volume in sales aggregate essentially individual line anticipate in broadly an markets, HTU offsetting shipments with volume HTU in-market movements year
We reflects impact are now by This our of combustible which neutral shipment maintaining of revised variance the assumption X%. target. pricing net currency volume of offset revenue total previously, year approximately effectively to above tobacco full a X%, growth X% compared higher of our at is least
assumption adjusted to operating investments basis least XXX neutral points from million, $XXX our approximately excluding the behind at income we are refining continue approximately expansion currency, we net anticipate RRPs incremental year basis to margin previously. XXX points currency of for While
In to volume in IQOS previously. compared in RRP longer to XX% EU total impact revenues to IQOS year we favorable in of IQOS markets. to latest of device net approximately relatively XX% that impact geographic This retail versions, lifespan the geographies, now of contribution greater notably compared and full of the note margin the addition, primarily select the changes prior reflects the HTU region, price the markets please high devices devices below expect be mix
of our requirements. The Russia. We operating cash billion, now subject the approximately year-end the compared billion to to $X working Separately, to charge expenditures prior billion, impact approximately $X.X change, reflects year billion we assumptions compared capital of previously. expect XXXX approximately of approximately now anticipate after-tax flow $X.X $X.X of full capital in
quarterly rate after Last to dividend use $X.XX per capital cash approximately we Dividends total $X.X our share. $X.X dividend annually. operating month, approximately flow or of to This quarterly primary billion remain the increased expenditures. by of X.X% equates a our billion,
To close performance. anticipated I full on guidance touch assumptions, our to would year on and fourth like quarter our
with adjusted be year-to-date net our in operating Importantly, we expect line and income revenue growth neutral to September currency results.
However, lower the following be our to EPS due diluted currency year-to-date neutral growth factors. performance our adjusted will than September
of rate clarifications the sizable continued full tax comparison income income And of growth fourth which year to unfavorable benefitted non-controlling versus high from the relative XXXX, related rate percentage contribution X reform. impact tax points U.S. tax our operating the interest. quarter month during roughly three of from An further with a markets adjusted
We fourth pro quarter growth two as quarter approximately diluted to drag diluted rate our X compared adjusted forma these on factors to adjusted a the percentage of share per EPS points expect serve in our currency neutral earnings fourth $X.XX of XXXX. of
metrics for recorded and business quarter, the of continues portfolio intact. against strong our each EPS billion third quality shipment HTU to a the geographies, reflecting operating combustible our by underlying strong volume margin across diluted The XXXX. net of in target in momentum IQOS neutral income, To XXX units confidence our our performance conclude, favorable supporting we key on The of basis. tobacco billion the XX adjusted execution currency fundamentals of revenues, supporting further are
We of are the launch excited IQOS IQOS the in global of launch U.S. and X by DUO. the recent
are full-year growth adjusted our revenues XXXX at least growth Finally, maintaining anticipated full currency year X%, of and basis, our XXXX X%. net least neutral for for of at on a rate EPS diluted we assumption
I'm happy your to Thank now you. questions. take
