“In terms of other key assumptions, for inflation, we expect a double-digit increase for 2025 versus 2024, driven almost entirely by cocoa as well as some labor costs.”

In context

“line 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 entirely by cocoa as well as some labor costs. In terms of interest expense, we expect approximately $350 million. We expect an adjusted effective tax rate in the mid-20s. Note that our cash tax rate is expected to run approximately 2 points lower than this rate. And for share repurchase, we are expecting at least $3 billion, with the flexibility to go higher depending on stock price. We are expecting approximately $0.12 of EPS headwind related to ForEx for the year. Before opening up for Q&A, a few comments on 2026. In 2025, we are trying to strike the right balance by running a reasonable P&L, while taking a responsible and thoughtful approach to maintaining the health of the chocolate category. In that context, we continue to scrutinize every dollar we spend, including A&C, where we'll continue to prioritize brand investments and p”