“With the continued lockdown and the difficulties in the market, we would expect April to be flat to negative.”

In context

“e, on the supply side, we have two plants in the Shanghai area and the contract manufacturer. Those obviously were shut down for now an extended period of time. So we had to activate our business continuity plans to offset as much of that production impact as we could. And we're certainly seeing a significant impact in terms of consumer demand. About 25%, I think, was the Wall Street estimates of consumers are somehow impacted by lockdown. That is impacting our consumers' ability to reach stores, grocery stores, department stores. Even online shopping is significantly constrained due to the inability to deliver. So we certainly see a significant impact from lockdowns. Latest read of market size in our categories over the past three months through March was flat in terms of value in China. With the continued lockdown and the difficulties in the market, we would expect April to be flat to negative. In terms of category detail, Beauty is significantly exposed to China. As you know, a bigger part of Beauty is -- of the Beauty business is in China. SK-II continues to be under pressure due to the market effect and channel effects in China. So that dynamic has not changed. The longer-term story on China based on historical results, which has been extremely strong over the past three, four years, as you know, we've grown high singles, low doubles in China. We believe the market continues to be a very attractive market for us. We expect categories to return to mid-single, high singles growth. We have a very strong organization, a very strong supply chain, a very strong R&D organization in China. So we remain confident, and we will continue to invest to capture the growth in the future. Ope”