Andrea Teixeira: Thank you. Good morning. Andre, your comments about volume, I would like to drill down a little bit. You mentioned China. I believe you are still looking to a mid-single-digit growth and obviously, I understand the choppiness of the market. And you had SK-II down in the low teens. So I’m assuming for that to happen, you’re expecting SK-II to gradually improve or lap easier comps as we go through the balance of the year. And then when you mentioned — like doing the math when you said pricing, as we decompose your guidance, right, the 4% to 5% organic total company, you mentioned expect sequential 3% to 4% decline in the benefit of pricing, right? So it was a good 7%, so you would be implying to us 3% to 4% in the next two quarters.
So with that being said, it implies in the next two quarters, some sort of improvement in volume, right, or at least some sort of inflection. So I was trying to figure that out in the context of what you said about China and what you said about total company, basically what it regresses to — regresses to an improvement in China? Is that what we should be thinking?
Andre Schulten: So first part — good morning, Andrea. First part of your question, we obviously want to see SK-II return to growth but the volume impact of SK-II is relatively limited because the volume to organic sales ratio obviously is very high unit sales. So China, we believe, will return to mid-single-digit growth. When exactly that’s going to happen is really hard to predict. And I would say, like we have delivered 7% organic sales growth in the first quarter with China down, I think we’ll continue to operate, and not counting on China recovery as the core catalyst to growth for the coming quarters. On your sequential question on volume, you’re right. As we said, the pricing contribution to organic sales growth will decrease 3 to 4 points over the coming quarters.
And we expect volume to progress sequentially. The exact trajectory of that progression, I think, is questionable, and I won’t make a prediction here. But I’ll tell you that the progress we’re seeing from minus 6% to minus 3% to flat — to minus 1% to now flat, is pointing in that right direction. So we see we’re on the right path, and we will continue to invest to drive wholesale penetration and create that volume growth in our business.
Operator: The next question comes from Olivia Tong of Raymond James. Please go ahead.
Olivia Tong: Great. Thank you. Good morning. Andre, you talked about the changes in FX and how you’ve been able to absorb that into the fiscal year outlook. Can you discuss what’s embedded in your outlook in terms of the consumer, the economy? Obviously, increasing risk or concerns around trade downs, slower volumes and macros in general. So if you could talk about that. And then also your ability and — your ability to switch between spending that is either net to sales versus operating expense in light of potentially volatile conditions. Thank you.
Andre Schulten: Yeah. Thanks, Olivia. Good morning. Look, the consumer continues to be remarkably resilient. As we said in the US, the consumption levels are actually stable. Our volume share and our value share are growing. And that’s true in Europe and in most parts of the world. And I interpret that as our portfolio doing exactly the job that it’s supposed to do. And building a portfolio that is grounded in superiority in daily use categories that are nondiscretionary, I think, is serving us extremely well. We’re able to add value, bring value to the consumer. And we are doing that in every tier, not just in the premium tier, but in the mid-tier and in value tiers across the world, which allows us to serve the consumer even as their spending preferences might change.
