“We are expecting approximately $0.12 of EPS headwind related to ForEx for the year.”

In context

“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 properly support brands as long as we believe the return is sufficient. We do expect EPS growth in 2026 based on cocoa levels staying elevated, but stable. Cocoa futures might come down, but we're not there yet. So, we will continue to plan various scenarios, with the base case for a continuation of elevated levels. If cocoa stays high, we would expect to gradually price more. If cocoa starts to come down, then we would ex”