Michel Doukeris: Let me take the first one here, and Fernando will take the second. We always talk about this and I always start the conversation around margins with two real statements. The first one is that we love our margin. We really like the fact that we have high margins because this brings us a lot of flexibility to invest as well as to navigate when situations are tougher. And the second one is that our margins, they exist for structural reasons, the power of brands that we have, premium brands that they command higher margins, the strength of positions that we have in key markets and the way that we operate our business in a very efficient way. And yes, I acknowledge what you said, the margins since €˜19. I think that we all saw a huge dislocation in terms of costs because of supply disruptions, because the way that things happen, but also because of inflation, that got worse with the situation last year in Europe and commodities going even higher.
And we’ve been balancing as much as we can, our ability to price correctly and having the category penetration and the growth of the category being prioritized. I think that — we talked about this before. As we look at 2023, with the visibility that we have today, the cost escalation is big but it’s smaller than what we saw in 2022. And on a percentage basis, it’s definitely smaller. And we continue to bring our prices up. So, what we did in the quarter four was a very important wave of prices and revenue management that will yield for us good benefits this year. And I think that things will accommodate with time. I can’t precisely tell you when and how much in a time frame, but we are very focused in continuing to drive the powerful brands, charge the premium price that they deserve and be efficient in the way that we do actives in the Company.
So therefore, we expect our margins to come back.
Fernando Tennenbaum: And hi Trevor, on your second question on dividends, on EPS and capital structure, I always like to take one step back and look at our business. We have a very good business that generates a large amount of cash flow in a very sustainable basis. So, it’s a very good business that consistently generates cash. Having said that, we need — once we have the excess cash for the business and just to quote a number, the free cash flow for 2022 was $8.5 billion. We need to decide what is the best way to allocate? And that’s what we call dynamic allocating our capital. We know that deleveraging creates value, and we know that 90% of the value of deleveraging happens when you get towards 3 times. So, while we were at a higher leverage, we focus most of the efforts towards deleveraging and very little towards other uses of capital.
Now, we are at 3.5%, we continue to use most of our resources towards deleveraging. You see how much our gross debt was reduced in the year 2022, but we already are dynamic allocating and increasing dividend. Still — it’s a sizable increase as a percentage. In absolute figures, we are still driving most of resources towards deleveraging. And the idea is that going forward, at any given moment, we see what is the combination that maximizes value-creation, that should be the main driver of our decision-making.
Operator: Our next question comes from the line of Pinar Ergun with Morgan Stanley.
Pinar Ergun: The first one is on marketing. We’re hearing from a range of consumer companies how they’re looking to increase their marketing spend in 2023. How do you think about that? And then, the second one is when you look at €˜23, which regions do you feel most bullish about in terms of volume development? Thank you.
