Emmanuel Babeau: Sure. So indeed, there are going to be some mix impact in Q4 and notably on the devices as we are rolling out ILUMA in a significant number of new markets. We are also launching some new innovation in some markets on the ILUMA device. That’s going to generate, I would say, significantly accelerated activity on our device sales, and that is having a negative impact on the margin. So that’s going to be clearly one element. Then on top of that, there will be certainly some investment during the fourth quarter, and that is having an impact on the margin. And then you can have some mix coming from geographies and other mix element. That is what is today behind the guidance of around flat. I mean it doesn’t mean that it’s going to be a bit positive. But today, we are seeing this around stability situation for our OI margin year-on-year organically for Q4.
Matthew Smith: Thank you for that. And just as a follow-up, when you talk about investments in the fourth quarter, should we think of that as a sequential step-up in investment relative to the level in the third quarter? Or is that more of a year-over-year higher investment compared to the fourth quarter of 2023. And I’ll leave it there.
Emmanuel Babeau: Yes, I think you should expect certainly a continuation of a significant level of investment as we are accompanying the growth of our star product, IQOS and ZYN. That should probably mean quarter-on-quarter, I would say, sequential increase and still a significant growth versus last year.
Matthew Smith: Thank you for that.
Emmanuel Babeau: Thank you.
Operator: Thank you. Our next question comes from Owen Bennett with Jefferies.
Owen Bennett: Good morning, Emmanuel. Hope you are well.
Emmanuel Babeau: Good morning, Owen.
Owen Bennett: I just wanted to ask also ZYN very, very strong in the U.S., but I wanted to ask about pouches ex U.S. So volumes only flat versus 2Q for Scandi and ex-Scandi. You mentioned you also had relaunches in Switzerland and Finland during the quarter. So I was just wondering how you see the near-term outlook for volumes at U.S.? Do you expect any meaningful acceleration over the next several quarters? And then the second question linked to that, there’s some increasing chatter now that the EU is looking to potentially ban pouches as part of the new TPD. Does this impact how you think about investing in the space ex-U.S. near term? Thank you.
Emmanuel Babeau: Thank you. Yes. So we have this situation in Scandinavia on nicotine pouch where the product is already present, mainly in Sweden, where it’s a nicely growing market. That’s not where we enjoyed the biggest market share. So we are globally year-to-date, growing on nicotine pouch in Sweden, but are not — we’re not talking about big volumes here as we have our strong leadership in Sweden on snus. Outside Scandinavia, we are just at the beginning. So yes, we are launching. So we explained that we’ve been launching in Switzerland, Finland as well, even in the Nordics. There will be more market to come. Now it’s going to be hopefully nice, but it’s going to be small versus what we see in the U.S. You see what I mean.
So it’s going to be difficult to see given the strength that we are seeing in the U.S. to see volume outside the U.S. showing their strengths. Now yes, it’s going to add very nicely additional numbers. But again, it’s not going to be huge compared to the U.S. We’ll see with TPD if there is any decision taken around nicotine pouch. Of course, if there is anything decided that will — in that respect, which we don’t know today that may influence the way we invest on this category in the EU. But frankly, at that stage, it’s too early to say because we don’t know what’s going to be discussed, if anything on that one. And therefore, we’ll see.
Owen Bennett: Okay. Thank you. Appreciate it.
Operator: Thank you. Our last question will come from Andrei Condrea with UBS.
