Total Revenue

+7.1% " " "

Robust growth driven by improvements in pricing and volume, notably in the smoke-free segments, which helped lift revenue from $9,468 million to $10,140 million, reflecting strong underlying performance relative to the previous period. " " "

Combustible Tobacco Revenue

+2.1% " " "

Modest increase from $5,858 million to $5,979 million, attributed to continued pricing strength and slight volume improvements despite a competitive environment, similar to past trends seen in previous periods. " " "

Smoke-Free Products Revenue

+15.3% " " "

Significant surge from $3,610 million to $4,161 million, driven largely by the robust performance of smoke-free products as consumers increasingly shift away from combustible options, reflecting momentum that built on prior period gains. " " "

Smoke-Free excl. Wellness

+16.3% " " "

Growth from $3,530 million to $4,104 million is due to strong consumer adoption and favorable pricing/mix improvements in smoke-free products, highlighting an accelerated trend compared to previous periods. " " "

Wellness and Healthcare

-28.8% " " "

Sharp decline from $80 million to $57 million, likely caused by strategic restructuring and divestitures that reduced the segment’s contribution compared to earlier periods. " " "

Europe

+11% " " "

Revenue increased from $3,815 million to $4,234 million due to higher pricing and improved volume/mix, particularly from key segments like HTUs in Europe, building on the growth momentum observed in the prior period. " " "

SSEA, CIS & MEA

+5.6% " " "

The rise from $2,771 million to $2,926 million reflects balanced regional improvements through favorable pricing and volume/mix, continuing a moderate growth trajectory compared to the previous period. " " "

Americas

+12.6% " " "

An increase from $1,129 million to $1,272 million is largely driven by strong growth in smoke-free product volumes such as nicotine pouches and HTUs, indicating a clear shift in consumer preference compared to prior periods. " " "

EA, AU & PMI GTR

+2.1% " " "

A modest increase from $1,673 million to $1,708 million suggests a plateauing performance in these markets, where incremental volume and pricing gains are more limited relative to earlier periods. " " "

Adjusted Diluted EPS Growth (%)

FY 2025

no prior guidance

+13% to +15% in dollar terms, including an estimated €0.10 favorable currency impact. " " Excluding currency impact: +11.5% to +13.5% " "

no prior guidance

Operating Cash Flow ($USD Billions)

FY 2025

no prior guidance

around $11.5 billion, subject to year-end working capital requirements "

no prior guidance

Capital Expenditures ($USD Billions)

FY 2025

no prior guidance

around $1.6 billion, primarily due to further international ZYN capacity investment " "

no prior guidance

Combustible Volume Decline (%)

FY 2025

Low single-digit decline " "

Expected to decline around 2%, with a forecast decline of 3% to 4% in H2 " "

no change

Combustible Gross Profit Growth

FY 2025

no prior guidance

Targeting growth in H2, supported by pricing and cost efficiencies " "

no prior guidance

Smoke-Free Volume Growth (%)

FY 2025

no prior guidance

Anticipated to continue double-digit growth in H2 " "

no prior guidance

Total PMI Volume Growth (%)

FY 2025

no prior guidance

Forecasted to increase around +1%, marking the fifth consecutive year of total volume growth "

no prior guidance

Debt Ratio Target

FY 2025

no prior guidance

On track for a target ratio of around two times by the end of 2026 "

no prior guidance

Currency Impact on EPS (€)

FY 2025

no prior guidance

Estimated €0.10 favorable impact at prevailing exchange rates, with benefits from a weaker dollar partly offset by transactional losses due to Swiss franc volatility " "

no prior guidance

ZYN Consumer Demand

Q1 2025, Q4 2024, and Q3 2024 discussed high shipment growth, strong consumer traction despite stock‐outs (e.g., +53% in Q1, strong traction in Q4, gradual replenishment in Q3) " " " "

Q2 2025 showed reaccelerated U.S. consumer offtake growth (+26% overall, +36% in June) with improved in‑store availability and solid global shipment growth " " "

Consistently strong demand with improved availability and higher growth momentum over time

Inventory Dynamics

Q1 2025 noted significant out‑of‑stock issues and gradual replenishment, Q4 2024 and Q3 2024 highlighted supply shortages and phased restocking " " "

Q2 2025 reported that restocking was largely completed in H1 (mostly in Q1) and the net impact was only slightly below expectations " "

Transition from severe stock-outs to near normalization in inventory levels

Production Capacity

Q1 2025 detailed increased capacity at existing facilities and the start of new builds (e.g., Colorado site), Q4 2024 and Q3 2024 mentioned expansions to meet demand (e.g., 900 million can target) " " " "

Q2 2025 emphasized U.S. production capacity increased ahead of plan and strong positioning to support dynamic growth " "

Continuous and proactive investment showing steady capacity expansion

Regulatory Environment Impacts

Q1 2025, Q4 2024, and Q3 2024 discussed favorable regulatory developments (e.g., in Greece, Hungary, FDA authorization for ZYN) contrasted with challenges like the EU flavor ban and litigation settlements " " " "

Q2 2025 mentioned positive EU legislative progress and new Middle East market access, while still noting uncertainties (illicit trade concerns and FDA delays for IQOS ILUMA) " "

Mixed outlook with ongoing tailwinds accompanied by persistent regulatory uncertainties

IQOS and IQOS ILUMA Performance

Q1 2025 and Q4 2024 reported strong global performance, robust market share gains, US pilot launches and optimistic FDA outlook; Q3 2024 highlighted continued growth and pilot progress " " " "

Q2 2025 reinforced robust HTU growth, significant market milestones in Japan and active US pilots; FDA approval for IQOS ILUMA is still awaited " " " "

Consistently robust global expansion with continued optimism despite regulatory wait for full US launch

High‑Margin Smoke‑Free Portfolio

Q1 2025, Q4 2024, and Q3 2024 all emphasized strong growth in smoke‑free product shipments, high organic margin expansion, and significant contributions from ZYN, IQOS, and VEEV " " " " "

Q2 2025 reported record net revenues in the smoke‑free category, significant gross margin expansion, and strong cost savings across products " " " " "

Persistently strong and improving margins with an increasingly dominant smoke‑free portfolio driving profitability

Competitive Pressures

Q1 2025 mentioned robust performance amid competitive dynamics; Q4 2024 flagged emerging synthetic nicotine products and vapor market challenges; Q3 2024 detailed active measures against illicit trade and concerns over the vaping segment " " " "

Q2 2025 acknowledged rising competition in heated tobacco and vaping segments while underscoring strategic pricing and consumer acquisition efforts " " " "

Competitive pressures remain constant with proactive strategies; sentiment is cautiously optimistic amid an evolving competitive landscape

Foreign Exchange Volatility

Q1 2025 reported unfavorable currency impacts (e.g., $0.07 variance) and transactional losses; Q4 2024 discussed multiple currency headwinds (Russian ruble, yen) and hedging; Q3 2024 noted a $0.06 impact and mix challenges " " " "

Q2 2025 specifically highlighted Swiss franc headwinds offsetting euro gains, impacting EPS benefits " "

Ongoing challenge with FX volatility across periods with persistent negative impacts despite hedging measures

Financial Guidance & Litigation Risks

Q1 2025 discussed macroeconomic uncertainty and cautious full-year guidance; Q3 2024 addressed Canadian litigation settlement and excise tax uncertainties; Q4 2024 had little on this topic " " " " "

Q2 2025 did not mention financial guidance uncertainties or litigation risks

Reduced emphasis in Q2 2025 compared to prior periods, indicating a possible stabilization in outlook

Pricing Power & Revenue Growth in Combustibles

Q1 2025 and Q4 2024 reported strong pricing contributions (over +8% and almost +9%, respectively) and solid revenue growth; Q3 2024 showed robust pricing increases driving revenue and margin improvements " " " " "

Q2 2025 reported robust pricing power (+7.2% from pricing actions) and modest volume declines yielding improved revenue and gross profit growth " "

Consistent and robust pricing strength continues to drive revenue growth, maintaining positive sentiment in combustibles

Heated Tobacco Unit Global Expansion

Q1 2025 detailed steady IQOS shipment growth and geographic expansion (including US pilots); Q4 2024 and Q3 2024 noted strong growth in Japan and Europe with some regional recoveries and challenges " " " " " "

Q2 2025 highlighted a 9.2% HTU shipment volume growth, milestone achievements in Japan (10 million users), and strong momentum in Europe and other markets " " " "

Strong and consistent global expansion with wide geographic diversification and continuous innovation

Strong Cash Flow & Financial Performance

Q1 2025 demonstrated robust EPS, margin expansion, and revenue growth; Q4 2024 reported record operating cash flow and strong financial metrics; Q3 2024 emphasized significant cash flow generation and cost efficiencies " " " " " "

Q2 2025 showcased an elevated operating cash flow forecast ($11.5 billion), disciplined CapEx, and ongoing deleveraging initiatives supporting strong overall financial performance " "

Continued resilience and robust financial performance with consistently strong cash flow generation and effective cost management strategies