Gabe Hajde: Okay. And some of the discrete projects that you have going on this year, I heard you say not on injectables but the capacity expansions, is it just safe to say that maybe everything that you’re spending above that $150 million this year is mostly pharma related?
Bob Kuhn: Yes. I mean we’ve talked a little bit but we do have some capacity increases in some other isolated areas. But yes, I think that’s a fair bet that a lot of the excess above the big rollouts are predominantly in the pharma area.
Stephan Tanda: If you look at the growth in proprietary drug dispensing systems, it’s so strong and obviously think about the product like NARCAN, you don’t want to run out of capacity. So you need to expand ahead of the curve and we’re having a keen looking there and do know hesitate to expand capacity.
Operator: Thank you. There are currently no additional questions registered. So I would now like to pass the conference back to Stephan Tanda for any closing comments.
Stephan Tanda: Great. Well, thanks for the questions. As you see, we are fully executing on the ambitious plans that we shared with you last September at the Investor Day with a strong focus both on the top line and on delivering structural and ongoing productivity gains. This is all to ensure our bottom line grows faster than our top line. You have seen that play out throughout 2023 and we’re now off to a very strong start in and we see that momentum continuing into quarter 2 and the balance of the year. Our order book and project pipelines remain strong, our customer is engaging very positively with our innovations and the overall value that we can bring to their brands and drug products, including our overall sustainability contributions.
A significant number of the productivity and cost reduction efforts are well underway in all regions. We mentioned a few on the call and they will keep adding to the bottom line throughout 2024 and 2025. In addition, our teams are energized to find additional productivity opportunities. This is becoming a point of pride in the company and taking root into our culture. We are increasing the competitiveness of our regional footprint with all the actions in Europe, Asia and North America. And now you’ve also heard about Argentina and we expand capacity in Mexico. As Bob said, our strong balance sheet allows us to continue to invest in growth, productivity and we also find the both sized acquisitions and partnerships and have a solid track record of delivering value for shareholders.
So when you consider all the puts and takes for the coming period, proprietary drug delivery systems will continue to grow even after a year of double-digit growth and we expect them to remain inside our overall pharma target growth. Injectables has a strong pipeline and has additional capacities coming online and validated through the year will be able to serve this demand digital health, we haven’t talked about but is continuing to improve with project wins. Fragrance will continue to grow after a year of double-digit growth, albeit at the lower rate. The destocking in North America for beauty and closures is coming to an end. And our Latin America team is executing very well against actually, a generally very positive economic background, of course, with the exception of Argentina which we are addressing.
We haven’t talked about Asia but China is progressively recovering and India is pulling very strongly. And as we talk, SG&A expenses and overall manufacturing fixed cost as a percentage of sales are coming down. So all of this makes us very energized for ’24 and we’re looking forward to discuss more with you on the road.
Operator: This concludes today’s conference call. Thank you all for your participation. You may now disconnect your lines.
