Richard Dierker: That was a great answer. The organic outlook for us is 3%. It’s price in 2023 and volumes were flattish. We had that in the release, and that’s really because we had carryover price from 2022. And then there’s additional pricing that’s already been sold in, like you said, it’s effective in February. So that’s really the preponderance of the 3% organic growth next year.
Matthew Farrell: Okay. Yes. Lauren.
Lauren Lieberman: Thanks. In the release this morning and then also in the presentation today, there was a notable absence of discussion around the VMS business. So thought it’d be great to just get an update on where things stand from an internal standpoint, supply raw material availability and also from a consumer demand standpoint, had early cough in flu, cold and flu. So where do we stand on kind of normalizing demand or what you think that will look like?
Matthew Farrell: Yes. That’s a good question. I’ll let Barry and Paul comment as well. But the vitamin business in January, it’s a vitamin category in January was down 10% year-over-year. And the reason for that is because if you went back to last year, you had Omicron and Delta, and you had a huge spike. In fact, the first quarter last year, you may remember from the slides, we had only 70% fill rate because we just couldn’t staff our plants. So that’s an issue for the category right now. As far as our issues go, yes, we’ve had some self-inflicted wounds over the year. Our supply has started to come back as well. Now we have to win back the consumer. But I’ll dish it over to Barry first and then Paul, if you want to add that.
Barry Bruno: Yes, Lauren. I think we see the category as struggling as we’re comping Omicron, and it’s a discretionary category. When you’re making a decision about $15, $20 vitamins. And as you saw in my campaign or regular grocery bills up $400 consumers are stepping back from the category. So good news, our supply rates are improving. Category is declining slightly. We’re waiting to see what happens now as we get past the Omicron comp, how it looks. But we’re going to be in a position to meet consumer demand as we get into the back half of Q1 here.
Lauren Lieberman: And just a quick follow-up because the outlook range, I mean it’s the beginning of the year, it’s not just early in the year and giving ourselves a lot of room as you navigate through infinite sense. But I’m curious how much of the year’s outlook is actually contingent on what happens with VMS because it’s got attractive margins, a wide range of outcomes, right, in terms of where the category settles out. Just curious how important that is the full year outlook.
Barry Bruno: Yes. What we said in the release is we had three categories that really hurt us last year through brands, where it’s got WATERPIK flows and vitamins. And we said three of those together, we expected modest growth in the aggregate in 2020, but it’s not going to be pulling the train — businesses.
Richard Dierker: In 2022, remember, those three businesses were about a 4% headwind to organic growth. In the quarter, they were as well, right? We had 0.4% organic, but we would have been at 4.5%, if not for those businesses. And we said for the full year, that’s going to true as well, 4% headwind. Just the absence of that headwind, they’re flattish to slightly positive next year.
Matthew Farrell: Okay. Olivia, your hand up before.
Olivia Cheang: Thank you. My question is around the cadence of margins because, obviously, you’re starting the year at a lower point. But you said that gross margin would be up in Q1. So could you talk a little bit about what’s embedded in the outlook as you progress through the year? Because expect that SG&A is up pretty considerably in Q1. Is that advertising? Or is there other expenses that we should be mindful of? And what happens as year progresses? Thank you.
