So overall, really pleased with what we’re seeing in Latin America. And likewise, we’re seeing the velocity and the turns improve more than we anticipated given some of the inflationary pressures in those markets. Now we shall watch it very carefully as the inflation continues to mount. But overall, structurally the P&Ls are in good shape, and the consumer seems to be quite responsive to the innovation and the pricing that we’re putting in the market. So overall, we feel we’re in a very good place.
Operator: Question is from Mark Astrachan of Stifel. Please go ahead.
Mark Astrachan: Yeah. Thanks and good morning. Wanted to ask a question on the Hill’s business. Again, just maybe thinking about category than your business. So how are you thinking — or what are you observing from the category standpoint? We can obviously see somewhat U.S. data, but curious how you think about it around the world that volumes overall are a little bit weaker. How much of that is a reflection of just all the pricing that you and your competitors are taking? Is there some of just sort of pause within the category over the — after the last couple of years of really strong growth and adoption levels? And then longer term, how do you think about — and maybe this goes to Jason’s question a little bit, but how do you think about the contribution to price and mix and volumes for that business over time? And how does that contribute to improving margins relative to where we are? Thanks.
Noel Wallace: Yeah. Thanks, Mark. So clearly, another strong quarter for Hill’s, double-digit organic sales growth despite lapping. And I remind everyone that we’re lapping 18% growth in the year ago period. So obviously, a really strong quarter. And the quarter a year ago was mid-single digit volume, so ultimately, a good quarter. And on a two-year stack, we were up. So looking quite strong. Categories softened a little bit towards the end of the category — I mean, excuse me, the end of the quarter. You would expect that given the amount of pricing that’s gone into that over the last three or four quarters. But overall, Europe continues to be very strong. U.S., strong despite very high comps. We anticipate that we’ll see a little bit of sluggishness as we move forward in the categories, only because of all the pricing that’s been taken.
But that will be more around the discretionary items in pet specialty than food. Nutrition seems to be okay. I walked stores with some of the CEOs of the big pet specialty retailers recently, and they seem quite bullish relative to the nutritional and particularly the premium segment of the market, where you don’t see a live elasticity in terms of when consumers trade off of diets, particularly on our prescription side. But we’re going to have to watch that quite carefully because there’s been a lot of pricing that’s going into the category. Emerging markets continues to be a real growth opportunity for us. It’s small for us right now, but we need to continue to focus on those opportunities, particularly in Latin America and in Southeast Asia, to a certain extent.
So overall, you’ll see us focus on those moving forward. But the categories continue to be quite robust, particularly given the growth headwind – growth head space that we have in emerging markets given we don’t have high penetration there. So overall, we feel pretty good, but we’re cautious on ultimately how the category continues to evolve from a volume standpoint as we see a lot of pricing going in those categories. But again, getting the P&L structured right, getting gross margin up consistently over the next couple of quarters will be very important for us to maintain the high advertising levels that are so critical to drive penetration in that category.
Operator: Our next question is from Chris Carey of Wells Fargo Securities. Please go ahead.
