Operator: We’ll take our next question from with NST.
Unidentified Analyst: Just wondering if you are able to give any insight into what the interest rate impacts could be in FY ’24? And also with tax, I note that there was a lower rate in the period, but wondering what we should expect for the balance of FY ’23 and what we should consider to be a more normalized rate.
Michael Casamento: Look, I mean if you think about interest and tax, together this year from a full year guidance standpoint, we’ve called out. They’re going to be a headwind of around 4%. And tax, we’ve called out, is going to be more in that 18% to 19% range. And that’s really on the back of the mix of earnings and particularly where our interest expense is, which is in higher cost — higher tax cost countries. But when you put that together with the interest increase, that’s more than offset by the increase in interest, so for this year, 4%, we haven’t called out any guidance for FY ’24 at this stage. But obviously, in the first half, depending on where interest rates go, there could be some headwind, but we’re yet to see where that ends up. So at this stage, I’ll — we’ll come back to you on that one.
Operator: We’ll take a follow-up question from John Purtell with Macquarie.
John Purtell: Just a quick follow-up. Michael, just on the raw material side, you obviously saw a modest benefit there in the second quarter. I mean it looks like the raw mat indices have retraced a fair way. So the question is what have you baked into guidance because it looks like there should be a pretty material raw material benefit in that second half.
Michael Casamento: Yes. Look, you’re right. As we mentioned, we started to see some modest benefit in Q2 from raw materials as they’ve come down. Obviously, we’re still holding higher inventories. So they’re working their way through the system, which you’re still going to see some impact from in Q3 as we work those down. We’re expecting guidance — raw materials right now, they’re pretty benign across — remembering, we will have a broad basket of materials across broad geographies. So when we see that pretty benign outlook for raw materials, so in Q3, we’re again expecting some modest tailwind from the raw material side. Beyond that, it’s really going to depend on what happens to the raw materials and how quickly we can get the inventory out of the system also linked to the demand environment, John, as well.
So clearly, if demand improves, and we get stronger than — we got stronger demand and then inventories will come down faster, you might get a little high tailwind. The opposite is true if the demand stays off — if demand is softer, and we can’t get the inventory out of the system as quickly then that will impact. But the guidance has a range of outcomes built into it, and that’s all factored into the guidance range at this stage.
Operator: Ladies and gentlemen, this concludes our question-and-answer session. I would now like to turn the call back over to Ron Delia for any closing remarks.
Ron Delia: Okay. Look, we would just like to thank everybody for their interest in Amcor, operator. We feel like we’ve had a very strong first half and we’re looking forward to closing off another strong year for the Company for fiscal ’23. So, we’ll close the call there. Thanks very much.
Operator: And that concludes today’s presentation. Thank you for your participation and you may now disconnect.
