“We expect an adjusted EPS decline this year, given the unprecedented levels of cocoa cost in our chocolate canal. This decline is expected to be approximately 10% versus the base of $3.36 in 2024, that excludes JDE Peet's from the equity income.”

In context

“nd levels due to higher pricing and elasticity, will eventually bring cocoa to a more sustainable price level. As Dirk mentioned, we have been planning our '25 business for some time now in advance on -- of elevated levels of cocoa, and we have developed a clear and comprehensive chocolate strategy. This includes leveraging a robust RGM playbook, strong marketing and sales execution, remaining agile with the right incentives and targeted cost savings. A few words on 2025 and key planning assumptions on Slide 20. For the current year, we expect to deliver on our long term algorithm for revenue. We currently expect top line to be approximately 5%. We have planned for higher levels of elasticity in chocolate, but we need to remain agile and assess the situation as new prices get implemented. We expect an adjusted EPS decline this year, given the unprecedented levels of cocoa cost in our chocolate canal. This decline is expected to be approximately 10% versus the base of $3.36 in 2024, that excludes JDE Peet's from the equity income. This outlook does not include the impact of the potentially significant new executive orders imposing 25% tariffs on U.S. imports from Mexico and Canada. This would create an additional headwind to the business, but given the fluid and rapidly changing nature of timing, it is difficult to provide a reliable estimate of impact for the full year at this time. Overall, we believe this outlook is a prudent planning stance based on our visibility to cocoa costs in 2025, which is substantially protected and hedged at this point. This assumption is based on the principles I just discussed. Based on our view of earnings, we are planning for free cash flow of $3 billion plus. In terms of other key assumptions, for inflation, we expect a double-digit increase for 2025 versus 2024, driven almost ent”