“While next year cocoa will be significantly higher than the average of 2024, it is projected to be lower than Q4 2024.”

In context

“le at more sustainable levels. Turning to our outlook. Our outlook for 2024 remains unchanged. We continue to expect on algo delivery for revenue, earnings per share, growth and cash flow. Just a word on EPS. We continue to expect high single-digit growth off a 2023 base that includes developed market gum. When you look at year-to-date margins, two things are clear aside from strong operating performance. First, we procure cocoa at much better prices than the market. And second, we priced a replacement cost. Thus, profit growth has been quite good. On the other side, Q4 is a bit of an anomaly as we booked your cocoa for Q4 close to peak, if not at peak prices, while at the same time, we will not yet have the benefits of either additional pricing or planned cocoa savings initiatives in Q4. While next year cocoa will be significantly higher than the average of 2024, it is projected to be lower than Q4 2024. Most of our other key assumptions remain consistent with what we shared with you on our last call, with the exception of interest expenses, which is now estimated at $250 million for the year. Although it is premature to get into specifics around our ‘25 outlook, I would note a couple of items. The majority of our business, which is not chocolate, will be on algorithm. We expect peak cocoa pricing to be reflected in the first half of 2025 while chocolate margins should improve sequentially versus Q4 2024. Our plans around pricing, RGM and cost management are expected to be significant and help provide room for reinvestment. However, where we sit today, it is tough to see a path to earning growth in 2025 unless cocoa is just down from the current future curve and/or elasticities are much m”