Andre Schulten: Good morning, Filippo. Yeah, when we talked about the cadence of earnings, I think it’s important to understand the drivers of the gross margin expansion we saw in quarter one. And we expect some normalization of gross margin. We were certainly benefiting from a high price contribution in quarter one. And as we said, that price contribution will ease over the coming quarters. The biggest part of the commodity help, about 33% of the $800 million after-tax commodity help has materialized in quarter one. So that’s a positive to gross margin relative to the balance of the year. And the foreign exchange rate headwinds will accelerate over the coming quarters. On the other hand, we will accelerate and continue to drive strong productivity.
We will continue to drive trade-up and innovation. And we continue to drive every other element of productivity, not only in gross margin, but across the P&L and the balance sheet. But I want you to take away that the gross margin expansion in quarter one is very strong, but we have headwinds going into the balance of the year.
Operator: The next question comes from Peter Grom of UBS. Please go ahead.
Peter Grom: Thanks, operator. And good morning, Andre. Hope you are doing well. So I wanted to ask specifically on Latin America, 19% growth in the quarter, very strong. And you may have alluded to this, but are you already seeing a return to volume growth in the region? And then just thinking through the performance in the quarter, can you maybe just unpack what you’re seeing in terms of broader category performance versus how much of this growth is a function of share gains? Thanks.
Andre Schulten: Good morning, Peter. Look, the Latin America business is on fire. And I think it is on fire because we’ve chosen maybe opposite to the market to double down on superiority. When we saw the need to price for foreign exchange and commodity impacts in Latin America, the team made the choice to double down on innovation and price for the innovation and to offset foreign exchange rate, inflation and commodities. And that clearly has played out well. We are seeing growth in our categories, and we are seeing share growth in Latin America. The growth is both on the volume side and on the value side in the biggest markets, in Brazil, Mexico, for example. I think the biggest headwind that we have to acknowledge is Argentina where it’s very difficult to make progress at this point in time, given the level of inflation, some constraints in terms of ability to price.
So outside of Argentina, I can only paint a very positive picture of the Latin America growth construction. And again, it’s grounded in the superiority of our brands. And I feel very strong about the sustainability of that model.
Operator: The next question comes from Mark Astrachan of Stifel. Please go ahead.
Mark Astrachan: Thanks, and good morning everyone. Two sort of unrelated follow-ups. One, just on China. Given your commentary about the middle class, I think everybody’s obviously aware that there’s a growing middle class and that they’ll ultimately consume more. But any sort of changes in your view about how quickly the middle class premiumizes purchases? Obviously, SK-II maybe sort of a one-off, but any changes there in terms of how quickly you think that they can go for more premium-priced products that potentially change how Procter thinks about its product positioning or portfolio positioning in the market? And then on the gross margin versus marketing spend sort of decision tree. If gross margin moderates, how do we think about the incremental reinvestment or marketing investment from an SG&A standpoint through the year?
Would that inversely kind of move with gross margin? Or I should say, would it move with gross margin, meaning less gross margin expansion, less reinvestment? Thank you.
