Samy Zekhout: But in the – just to compliment Stéfan, I think in the context of what you’re saying on the execution of the flywheel, and when we talk about spinning and accelerating the flywheel in there, we indeed start by the big one, the most profitable. And little by little, we’ll have the coverage of the 25. That’s very clear. So there’s an element of sequencing there. And what’s really important for us was to continue on the momentum we established in Q4, continuing in Q1, and for the rest of the quarter. But prioritization of the must-win-battles doesn’t mean we are not investing and not considering the rest. It’s a very important part of the portfolio. But when you allocate your assets effectively and your advertising assets, you really want to do it where the growth potential is the highest and where the profitability is maximized.
Jon Tanwanteng: Got it. That’s very helpful. Thank you. And then both Stéfan or Samy, I think you mentioned that you’ve seen lower commodities or inputs in your prepared remarks. How much decline have you seen so far this year? Or are you seeing the future? And kind of compare that, how many – how much, what percent of your inputs have you secured so far and how much room does that leave you to benefit from lower prices as we go through the year?
Stéfan Descheemaeker: So we have at this stage covered about 80% of our full year commodities. And that helps us, if you agree, let’s say, keep some flexibility, balancing effectively the supply requirement. We have to make sure that we can produce what we want at the best possible price. But we are left with about 20% uncovered in a context of effectively moderated to effectively slightly declining prices on some of the commodities. So that puts us in a quite good position if you want to enable us now to frankly even manage our RGM intervention, promo intervention and margin development to allow us at the same time to reinvest and to improve our performance overall.
Jon Tanwanteng: Great. Thank you very much.
Stéfan Descheemaeker: Welcome. Thank you, Jon.
Operator: [Operator Instructions] The next question comes from John Baumgartner of Mizuho Securities. Please go ahead.
John Baumgartner: Good morning. Thanks for the question.
Stéfan Descheemaeker: Hi, John.
Samy Zekhout: Hi, John.
John Baumgartner: Maybe first for Stéfan, I wanted to touch on promotion and specifically non-price promotion and the lift from display and the portable freezers that you’re placing outside the aisle. With frozen fish demand sort of coming off seasonally for the summer, should we expect that non-price promo also becomes less of a support and price promo increases in the mix? I guess patented demand drivers change seasonally to sustain the volume recovery that we’re seeing until you get to Q4.
Stéfan Descheemaeker: Well, no, I don’t think there is going to be a material change. The difference is now it’s more structured than it used to be in the past. So the flywheel is really a great tool. We should show this to you one of these days because it’s really a great tool that is not only used at the center, but it’s really used at the regional level. And then depending on where the situation is, trade wise, and then, let’s say category wise, they may decide to go with non-promo or promo. So it’s very different country by country [indiscernible]. But the difference is, no, it’s really structured the right way. So there are countries where, quite frankly, non-promo is still working absolutely. And the way it’s working, I can tell you where we’re using it.
There are some countries I can mention, obviously, the Adriatics, for example. The non-promo side is very big. And then we’re also testing in some of the countries, in other regions and we are quite pleased with the results.
John Baumgartner: Great. And then Samy, on the operating expense line, I think Stéfan mentioned Q1 A&P spending was up 20%, but total OpEx was only up about 12%. What was the offset there that blunted the rate of total OpEx growth? Was it productivity? Was there a timing shift at all? And if it is efficiencies, what are your expectations for those to sustain for the duration of 2024?
Samy Zekhout: So there has been definitely, I mean, efficiencies, I would say overall that we have seen operating, I would say from that end. And a bit of phasing, I mean, there in a way that effectively we are frankly trying to shift our spending where with event, I mean, and one of the elements within the flywheel that we’re trying to do is synchronization of the different elements there, which is at the same time we synchronize RGM, A&P and as well the in-store activities. And from that standpoint, the whole flywheel is being exactly synchronized. Hence the point of the fact that the trend will be good, but then you may have effective some month to month, I mean, differentiation there. But from a productivity standpoint, effectively we see now a step up, gradual step up across the year.
Now, as we have in our programs both from, let’s say on the gross profit side with our cost saving program from a manufacturing standpoint, but as well, we are seeing the same effect on below the line, effective on operating expense as we move forward. The ramp up of the marketing expense, I mean, of the A&P is clear, let’s say above 20% increase in Q1 and even more so in Q2 and Q3. And over the year, there will be a step change. I mean, as you – as we have alluded to that point. And from an indirect standpoint, if there’s a combo of investments combined together with them in some productivity intervention as we look at the total year.
John Baumgartner: Thanks, Samy. Thanks, Stéfan.
Stéfan Descheemaeker: Thanks, John.
Samy Zekhout: Thanks, John.
Operator: Our next question comes from Jon Tanwanteng of CJS Securities.
Jon Tanwanteng: Hi. Thanks for the follow-up. Not to focus too much on the month to month, as you spoke before, but could you give us a snapshot of volumes in April and how that’s trended and if we should be taking anything with that?
Stéfan Descheemaeker: I would say it follows that. It follows an interesting trajectory. I hate to come up with, obviously, monthly results, but we pleased with what we’ve seen. I would put it that way. And it’s very much in line with what we said at CAGNY.
Jon Tanwanteng: Okay, fair enough. And then just as you head into the seasonally stronger quarters at Adriatics [ph], are there any puts and takes as we think about the year-over-year comparisons there? You’ve had two very strong years in a row from there. And does it make it a difficult comp?
