Not materialize, I think it’s a matter of who then we should talk about this. Other than that, the underlying IQOS growth, if I look at the value of a share evolution, essentially, our European market is pretty strong despite the fact that very much in Central Europe, there is maybe more of the pricing competition from other heat-not-burn participants. But we also have a very strong price competition, extremely strong price competition, I should say, both on the devices and the consumables, consumables in Japan. And over the period of time, IQOS navigates for this highly sometimes aggressive competitive pricing environment very well. So that’s essentially where we are. Germany grows very nicely. Italy continues with a very strong growth momentum.
Again, the major driver is Spain. We make the — we start making a significant progress. So that’s it for me.
Mirza Faham Ali Baig: Thank you. And then just one other question, please. So you’re expecting a smoke-free acceleration in 2024, but that’s not translating into group net revenue growth acceleration in 2024. Are you expecting a softer performance in combustibles in ’24? Is that the discrepancy?
Jacek Olczak: Yes. I mean look, this is the blended — at this moment in time, at the beginning of the year, the blended outlook for the group revenue is combustibles, oral and, obviously, heat-not-burn. There’s few other in smaller things. But we have managed last year to deliver a very strong pricing variance. I think again, it’s fair to assume that the driver of a pricing variance may not be repeatable this year. But there is obviously a pricing potential, which we baked in, in the — or included in the guidance. Look, for some of these things, we need a little bit more visibility to start increasing our confidence. I still believe that if I compare what Philip Morris is delivering now, number of the years when we leave the revenue top line above 7%.
And remember very well the times when we started transformations when they were the 3% to 5%, now I think a quality what counts for us, and this is what we pay a lot of attention, that we not only want to lead in a sustainable matter the revenue growth, but obviously important is the quality of that revenue growth. So having a 3-year total group volumes to start with above was no decline, not even flat, but growing, when you start overlaying this by pricing and managing to — focusing to avoid the risk of some down-trading, et cetera, I think that the 7% is there, well, above 7% revenue growth is the pretty — from a qualitative perspective, not just from the nominal growth perspective, I would think that is all that EBITDA.
Emmanuel Babeau: Just to add to what Jacek has just been saying. I mean indeed, it’s taking into account that 2023 was exceptional when it comes to price increase with close to 9% on the combustible portfolio and we don’t intend to repeat that. We are guiding to a mid-single-digit price increase for 2024. So of course, that will have an impact and make a difference on the growth of our revenue on the combustible business.
Operator: We’ll go next to Callum Elliott with Bernstein.
Callum Elliott: Hi, good morning. Thank you for the questions, guys. I just wanted to start with disposable vaping products. We’ve obviously seen these products have huge success in the U.S. in 2023 and the U.K. also driving us a steeper volume decline for commutable cigarettes in those markets. Obviously, your combustible cigarette business in those two markets is not huge, if nonexistent, obviously, in the U.S. So not a huge impact on your business so far. But my question is why do you think we haven’t seen equivalent success for these products in the markets that are big markets for your business and the EU in particular? And do you think this could be a threat to your business in 2024?
Jacek Olczak: You mean the threat to our business coming from the e-vape products? Look, there a number of factors, right? So one is that I think that the category of the e-vape product is being disposable; it’s not disposable. It’s very much focused in terms of the offering and innovation, frankly speaking, into the flavors, right? Then we very often forget that the core of the smokers’ market-by-market with literally few exceptions are very much and if I would characterize is a traditional tobacco type of experience flavor, et cetera. So this creates sort of a more dual consumption or occasional consumption. But I think for some smokers and we know it from our experience of IQOS, it actually triggers curiosity to try, but at the same time, triggers the bottleneck in terms of a full-time type of a switching adoption. So that’s one of the factors, okay? And then obviously, other factors at play.
Callum Elliott: I guess I understand that, yes. But why hasn’t that — it seems like in the U.S. and the U.K., that hasn’t been an impediment to these products’ success over the past 12, 18 months.
Jacek Olczak: Results, so the focus, right? Because U.K. was on the forefront as was U.S., if I remember historically, of the forefront of this category partially, I guess, also attracted by the underlying margins in the CC category. So obviously, people are going with alternatives to the places which create some sort of that underlying margin opportunity with the relative freedoms also to talk about these products. As you know, Europe very much, but also in international, some countries, these products are not very — let me put it that way, warmly welcomed. So let’s leave aside the hybrid action principles. But some other opinions and views at play. Look, we know that we enter a e-vape category, but we’re trying to be very disciplined or focused I should say and it’s very easy to enter into this category without too much of the path to sustainable profitability.
