Modified · Macroeconomic environment

We continue to observe significant market and geopolitical uncertainty, fluctuating consumer demand, inflationary pressures, supply constraints, trade and regulatory uncertainty and exchange rate volatility. In addition, consumer preferences continue to evolve in response to health and wellness trends. As a result, we experienced higher operating costs, including higher overall raw material, labor and energy costs that have continued to rise. In particular, cocoa prices are lower compared to , while below prior year butpeak levels, are expected to remain elevated compared to historical levels in the near- and medium-term. Refer to Commodity Trends for additional information.