Operator: We’ll take our next question from Adam Samuelson with Goldman Sachs.
Adam Samuelson: I guess I want to come back to this question on mix. And Ron, earlier, you alluded to maybe health care, which has been a strong growth driver moderating as we go into the back half of the year. Can you just maybe calibrate that a little bit more, just in the context of broadly cautious kind of volume outlook, kind of when you see the health care business settling out? And kind of help us think about how — what happens into fiscal ’24 as you start lapping some of the growth there.
Ron Delia: Well, health care has been a good grower for us over many, many years. And it’s grown — both the medical packaging side and the pharmaceutical packaging side have grown kind of mid-single digits globally, obviously a bit higher in the emerging markets, and that’s been consistent over a long period of time. I think we saw extraordinary growth in the first half coming off of actually quite a strong fiscal ’22 as well. A few drivers there that we think have been fueling that growth. Obviously, our market position is quite strong, and the innovation that we’ve been bringing to the market is quite strong, and we’re investing behind that as we’ve highlighted today. I think there’s — to be clear, there’s been some pent-up demand because some of the supply chain constraints that we’ve talked about and others have talked about really hit the health care segments for us in a pretty acute way.
Those are unwinding, and some of that pent-up demand is being satisfied. And I think it’s also not a secret that on the pharmaceutical side, there’s been a relatively big cold and flu season. So those are some of the things that really fuel double-digit growth globally across both the medical device and pharmaceutical segments for us in the first half, and we believe that the business will continue to grow at healthy rates but will revert more towards long-term trends that we’ve seen over a long period of time in the kind of mid-single-digit range, and that would apply going into FY ’24 as well.
Adam Samuelson: Okay. That’s helpful. And if I can just squeeze another one. In the context of maybe on the food and consumer goods side, but slowing demand and some of destocking on the part of customers, have you seen their engagement on new products and new form factors for packaging change at all as bid activity or RFPs maybe that kind of activity different than 6 or 12 months ago?
Ron Delia: No. If anything, it’s accelerating, particularly around the sustainability side, where many of the brand owners that we work closely with have the same commitments that we have and have made similar pledges around recyclability or recycled content. Those commitments are fast approaching and the dates are fast approaching. And if anything, we’re seeing an acceleration in that dialogue, and we’re seeing good take up. Some of the examples we cited today with our AmFiber performance paper platform, which is getting good take-up in the marketplace. We’re seeing good early take-up of advanced recycled material and products that contained that off-take. And so look, I think at the moment, it’s not slowed down at all. I think also brand owners are looking for ways to differentiate as they try to scratch out whatever growth they can.
Operator: We’ll take our next question from Nathan Reilly with UBS.
Nathan Reilly: Ron, would you mind just talking about how the latest round of general price increases have been received by customers just given that lower demand outlook, particularly with those December volumes takes to notable turn down? I’d imagine it’s getting even harder to recover inflation on costs, but I also note your comment on managing manufacturing capacity. So just interested on any views on pricing.
