“The difference is you're going to see sequential price improvement throughout the year, particularly as of Q2, Q3 and Q4, and that will provide benefits to the profitability of the company.”

In context

“e sure we're kind of thinking through those moving pieces between cost and pricing over the course of the year. Luca Zaramella: Yeah. So, the pressure that you saw on profitability in Q4, it is the fact that cocoa was fairly high into our P&L in Q4. Your assumption should be that, that level of cocoa keeps until for the full 2025 at this level -- at this point in time, that's our assumption. So, I think you should assume that, that level of cocoa is equally spread throughout the remaining quarters of 2025. Now, the differential in terms of gating for profitability of 2025 is that we will have more pricing coming into the P&L. So, the elevated inflation is going to keep on hitting Q1, Q2, Q3. Obviously, Q4 will be different, because there is already elevated level of cocoa in the baseline. The difference is you're going to see sequential price improvement throughout the year, particularly as of Q2, Q3 and Q4, and that will provide benefits to the profitability of the company. Thomas Palmer: All right. Thanks for that. And just on the elasticity, you mentioned so far, that elasticity was 0.4. Just any color on what's embedded in guidance at this point? Thanks. Luca Zaramella: That is the guidance number. We have seen elasticities that are a little bit lower than that. We monitor elasticities very closely. I can tell you that in Q3 and Q4, the elasticities for chocolate that we saw was a little bit lower. The current planning assumption for 2025 is that elasticity on average is 0.4, 0.5 times. And that number is higher than what we have seen in 2024. Thomas Palmer: Okay. Thank you. Operator: We'll move next to Max Gumport with BNP Paribas. Max Gumport: Hey. Thanks for the question. You mentioned a number of times in this call that you have one of the highest sup”