Greg Lovins: Yes. I would just add to Deon’s comments there. I think when we look at 20%, it’s probably half or just shy of half of that from the logistics and food growth that we’ve talked about and then a quarter or so of that from the apparel rebound which again we’ve baked into the second half. And then the rest of that from general retail and some of the other programs that I think Deon already touched on as well.
Operator: Our next question comes from Christopher Kapsch with Loop Capital Markets. Please proceed.
Christopher Kapsch: So two questions sort of focused on margin. In your formal remarks, you mentioned in the materials segment about protecting margin in the context of, I guess, some deflation. I’m just wondering if you could elaborate on that comment? And are you referring more to just sort of giving back some of the price in the context of some raw material costs coming in? Or was there a broader comment there about just the competitive dynamic as we’ve evolved through this destocking period? Maybe you could just comment on that.
Greg Lovins: Yes. I think the comment, Chris, on protecting margins is really about given the volume challenges that we saw with the amount of destock. So it was really about the actions we were taking to help offset the volume impact on the bottom line whether that be through productivity actions, some of the temporary actions the team is taking to offset that, belt tightening, all those type of things, that’s really what that’s more referring to overall rather than the price inflation dynamics.
Deon Stander: And Chris, let me just add from a competitive dynamic perspective, we know that we’ve not only maintained but slightly grown share in 2023 in our label business, both in North America and Europe and we’ve grown share in our Asia Pacific business as well as we continue to really focus down on service excellence and delivering for our customers. Our apparel share as well, if you’re switching segments is also we’ve held share in apparel and in fact, are gaining in some of our new high-growth segments such as external and [indiscernible] as well. And overall, our IL share has grown as a consequence of some of the large volume programs we’ve rolled out as well.
Operator: We have a follow-up from John McNulty with BMO Capital Markets. Please proceed.
John McNulty: So on the solutions business and in particular, the margins, do you had a nice margin uplift from 3Q to 4Q with the big logistics player coming in. At the same time, when I look at it, the margins relative to, say, your revenue, revenue is kind of at an all-time high. Margin is not necessarily there. Did you have a lot of extra say, feet on the street or however you want to put it to kind of ensure that, that platform went off flawlessly as it ramped to kind of full levels? And if that was the case, how much does that kind of get dialed back as we look to 2024?
Deon Stander: So John, I think there are two elements to this. One is we continue to, as we said, consistently forward invest ensuring that we have industries adopt. And so part of when we had lower volume overall, you tended to see the impact on margins overall. I think the second piece in this is that we will continue to see the return of some of those temporary cost actions that we’ve taken, as volumes pick up during 2024 as well. But the benefit of the additional volume and the way our teams are operating and the mix that we have from high-value segments and base on our solutions business will see our margins expand during 2024.
Operator: We have a follow-up from George Staphos with BofA Securities. Please proceed.
George Staphos: So my questions are on solutions. Deon, can you talk a little bit about how Vestcom did relative to the KPIs you would have had for the business in ’23 and what the expectation is for ’24 and then relatedly, within Solutions, you’ve covered this already to some degree. But IL for apparel it looks up a little bit, looking at Slide 7 versus ’23 still down versus ’22, if we’re reading it correctly. Help us understand what is going on in terms of IL adoption and usage and apparel and why you’re comfortable in the outlook there going forward? Thank you and good luck in the quarter.
Deon Stander: Thanks, George. On your first question related to Vestcom, we continue to be really pleased with the progress that business is making as part of the Avery Dennison family overall. In ’23, we grew at the pace and delivered the margins that we expected and, in some instances, slightly ahead. And in ’24, we’re expecting continued growth and actually a little bit of [Technical Difficulty] as we are in the process of piloting with a very large national retailer in the United States demonstrating the benefit of our productivity benefits that our shelf-edge labeling technology and data composition engine are able to drive that. In terms of IL, overall, you’re right on that slide, what we’re anticipating is that IL will slowly recover in the first half and then actually accelerate as the apparel industry recovers in the second half.
