“That impact is going to get into the P&L in Q4, specifically in North America as a driver.”

In context

“material upside in the quarters to come, but certainly a timing upside as we have accelerated the delivery. And the third element is a little bit on the commodity side. We were able to obtain some commodities at favorable prices, and that has resulted in some margin upside. So in terms of cadence, we are clearly happy where we are at this point in time. I can't rule out the fact that there will be maybe a little bit more pressure going forward from tariffs. The direct impact to Mondelez is really minimal and manageable. And you can imagine that we are at this point in time not only we should start to most likely go through Q2 and Q3 in terms of those ingredients that are impacted. But importantly, we are sitting down with suppliers and trying to negotiate a more benign impact than we see. That impact is going to get into the P&L in Q4, specifically in North America as a driver. But in the big scheme of things, I would say, not a major deal, and something that most likely we'll be able to manage through several things that we are working on. Cadence wise, I remind you that percentage margins in this context is quite misleading. I think you saw that pricing in chocolate is up meaningfully. Total revenue was up 10%. So percentage margins as we price away absolute dollars will get diluted. But importantly, as we mentioned many, many times, we will be looking at chocolate margin per kilo as we exit 2025. And if we have done a good job in managing elasticities, I think we will have a very good situation in terms of profitability at the end of the year in terms of GP dollars and that will put us in a good position to grow earnings into 2026. Megan Clapp: Great. That's”