“We are still planning for some disruption in Q2, which has been factored into our revised outlook as the remaining 20% of our customer base is not done yet.”

In context

“supply chain, we feel confident that share will continue to improve during the year in the U.S. Turning to page 14, we delivered strong double-digit to OI dollar growth driven by a gross profit increase of more than $540 million. These results enable us to continue to significantly fund our business for future growth, while also providing strong earnings and cash flow. Moving to regional results on slide 15, we delivered double-digit revenue growth and posted volume mix increases in all regions. This growth, fueled by pricing and volume leverage drove robust OI dollar growth across all regions. Europe grew plus 18.9% with high-single-digital OI growth. We have made progress in lending expected pricing increases with circa 80% of our customers and with lower disruption than we anticipated. We are still planning for some disruption in Q2, which has been factored into our revised outlook as the remaining 20% of our customer base is not done yet. Consumer's confidence has stabilized in much of the region, with many key countries trending back to spring 2022 levels. Elasticities of biscuits and chocolate are overall less negative than we anticipated, including in the U.K., where the impact of HFSS is less material than what we had forecasted. Overall, rather than cutting back significantly on size of their basket, consumers are shopping around, to find attractive deals and trading up and down in terms of pack sizes based on their specific needs and consumer occasions. They remain loyal to branded products, particularly in chocolate. Having said that, our focus is now on landing the remaining part of the price increases. North America grew plus 17.3% with OI dollar growth of more than 40%, driven by higher pricing, solid volume mix”