Nik Modi: maybe you could provide some — a little bit more context on what you are seeing on the ground in China right now. It’s interesting you mentioned you think the recovery will happen in the back half, so I think there has been projections by other companies and just by looking at some of the mobility data that things might start improving around March to April and we are already starting to see kind of we track the metro activity in China and starting to see some real improvements there. So just curious on your thoughts there given how important that business is for the — on the margin side given the skin care mix?
Noel Wallace: Sure. As I mentioned, we had strong performance in China on the Colgate side of the business. Our Holly & Hazel business up nicely mid single digits, our Colgate business up nicely mid-to-high single digits. So, overall, we feel very good about the transformation that we put in place over the last couple of years across our China business. Our brick-and-mortar business is a little soft. But as I mentioned, that’s, I think, characteristic with the lack of mobility around the country and as mobility improves, as you say, and if it improves earlier, by all means, we should benefit from that as we continue to expand our distribution in that marketplace. But it continues to be highly, highly uncertain. Obviously, the Chinese New Year, everyone is waiting very carefully to see the impacts of that.
There’s a lot of euphoria, but infection rates are still very, very high and things could change very, very quickly there. The comment I made about the back half is not only mobility within the country, which I think will probably, as you say, improve more quickly, but it’s more external mobility in terms of more international travel, which would benefit the Filorga business. But again, we feel good from the success that we are having from a market share growth. Our — as I mentioned earlier, our e-commerce business was up almost 300 basis points on the year this year and that is again a reflection of the strategy and some of the good innovation we brought into the market. If the markets improve, we shall — certainly see the benefits of moving through our P&L earlier than we anticipated.
But I would be quite cautious on China at this point. But over the long — medium- and long-term, we are very optimistic about the growth opportunities there.
Operator: Our next question will come from Jason English of Goldman Sachs. Please go ahead.
Jason English: Hey. Good morning, folks.
Noel Wallace: Hey, Jason.
Jason English: So Mr. Faucher talked about the healthy growth contribution from Hill’s, and obviously, the topline lift has been really last few years. It’s surprising, though, to see penny profit actually contracting this year. Can you unpack the drivers and I imagine within that, you are going to come back to some of the ag inflation. So, I guess, I will tag on to that. Ag — the ag complex seems like it’s one of the easiest ones to hedge out. I imagine you are hedged out, and therefore, have good visibility to it, assuming that part of the contribution is related to ag? What’s impeded your ability to price that through? Thank you.
