Kevin Kwilinski: Yes. I think that will likely be the outcome just because we have a significant organic growth opportunity staring us in the face. But I think we also need to consider how acquisitions potentially help accelerate that growth. And I would say that brings up another area of thought that I have in terms of how we might be different in the future as opposed to how we’ve operated historically. And, when I think about strategic opportunities for acquisition, I think we need to make sure that the lens that we’re using is highly focused on the future organic growth that it exposes us to, that it gives us new capabilities and know-how in order to spread across the business. So synergies are great, and we’re very effective at executing on synergies and driving that to the bottom line.
But we need to make sure that acquisitions we do are also part of our overall organic growth strategy and that they are meant to accelerate the underlying organic growth of the company.
Ghansham Panjabi: Very good. Thank you so much.
Operator: Thank you. One moment for the next question. Our next question will be coming from Arun Viswanathan of RBC. Your line is open.
Arun Viswanathan: Thanks for taking my questions. So just a couple of questions. So first on the free cash flow guidance for next year [Technical Difficulty] also down $100 million year-on-year. So could you just walk us through some of the [Technical Difficulty]
Kevin Kwilinski: Yeah. Good morning, Arun. You’re breaking up a touch, just as a heads-up. But you got the items right. The other one would be working capital. Back to the question earlier, we had over $200 million benefit from working capital in ’23 that helped produce the, $900 million plus of free cash flow. Our assumption going into the year is flat. Obviously, we’re going to work diligently to drive savings over the course of the year. But consistent with prior years, we assume flat as the year starts. Those are really the only significant bridge items on cash flow.
Arun Viswanathan: And just another question on — you mentioned local markets here, healthcare, pharmaceutical and so on. I think foodservice is now 20% of your portfolio maybe a little bit more. If you were to remove HH&S from the portfolio and that probably would get us to health care and maybe a couple of other areas. So how large do you expect some of these to get [Technical Difficulty], and how do you, I guess, plan to target especially, if you are in the disposition of HH&S?
Kevin Kwilinski: Yeah. Arun, I think I caught your questions. We’re evaluating a wide range of alternatives for that business. We’ll certainly update the metrics post whatever, update if and when we have, one. That would not change our focus on driving more growth and higher penetration in high-growth markets irrespective of the impact that, any potential transaction might result in.
Arun Viswanathan: Thanks.
Operator: Thank you. One moment for the next question. Our next question will be coming from Adam Samuelson of Goldman Sachs. Your line is open.
Adam Samuelson: Yes. Thank you. Good morning, everyone. I guess, the first question is. if you just think about the EBITDA outlook for 2024, basically flat to up $100 million of EBITDA. Just the midpoint is basically achieved with the year-on-year kind of carryover restructuring savings, flat volumes, flat price cost, and I guess it’s plus/minus around that midpoint is the current thinking. You earlier alluded to potentially a better operating leverage if volumes surprised to the upside. How — what’s the magnitude that we could be thinking about to sensitize kind of your model to the changes in end-market demand going forward?
Mark Miles: Yes. Sure. I guess, I would answer it in two parts. As Kevin alluded to earlier, our outlook assumes flat volume. And I would keep in mind that was coming off of a very tough volume environment that included some level of destocking. So we’re not expecting in our outlook of significant improvement in consumer demand, in fact, the opposite, right? We’re assuming continued pressure and assuming some of the destocking goes away, depending on which way you want to assume those variables, those would drive us to the higher end of the range. With respect to the productivity goals, I think as mentioned earlier, it’s a little too early to quantify. But, certainly, we’re going to push to get the savings as soon as we can, and we’ll continue to update you on our quarterly calls relative to our progress on those goals and the dollars that we can expect to benefit from achieving them.
Adam Samuelson: Okay. That’s helpful. And then, on the volume kind of performance in the corner — quarter and as you look forward, volumes — the declines were less significant than they were. In prior quarters, the comps get easier starting from the last prior-year destocking. Has there been any changes in customer end market categories that you would call out as notable positively or negatively relative to the last couple of quarters?
