Matt Farrell: Yes. What was the last part of that, the 4% is actually–
Javier Escalante: You mentioned that you first hoped that you thought it was 4% and you were promising 3%. Perhaps now you think that is 5% and you’re promising 4%.
Rick Dierker: That’s one way to think about it, but no — we wouldn’t really comment on what our internal expectations are. But why don’t we answer how extendable is HERO and THERABREATH and other?
Matt Farrell: Yes, I’ll start off and then Barry, you pile on. So, we want a business that disrupted a category. So, the category was a $500 million category in the US say, four or five years ago. And then this new form comes along. Now, it’s a billion-dollar category and still growing. So, we said, hey, what you really want to do is you don’t want to get distracted. You want to really do a great job with household penetration of patches in the United States and also taking it globally. So, that’s where our focus is. But there are opportunities to go elsewhere.
Barry Bruno: Yes, for sure. Both of them are extendable, there’s no question about it, right? Oral care and skin care, two giant categories, depending on how you define them. Both brands are so strong that they’re absolutely expendable. It’s a balancing act of doing the right job at the right time and not getting over your skis too fast. So, I would say it’s not a question of if, it’s when. And we’ve got an absolute plan about adjacencies to move into for each brand. They’re super strong brands. Consumers are asking for more and more from us. It’s tempting to go faster. We just want to support them in the right way, especially they’re foundation products.
Matt Farrell: I’ll be getting e-mails from people in marketing and new products tomorrow, because you’re on their team. We should be going into adjacent categories more quickly. But I think the slow roll is going to pay off long-term. Okay. I think that might be it. Anybody else that has…?
Rick Dierker: Olivia has been waiting.
Matt Farrell: Oh Olivia, so sorry, dead center.
Olivia Tong: Thank you. I just wanted to ask you Rick about the SG&A target coming in a little bit. And if you could give a little bit more color behind that. Does it reflect incremental investment in certain areas in terms of operations? Or is it more a function of lower leverage, even though the organic sales target is going up? And then, just on the sort of narrowing and consolidation of power brands, what is that — does that suggest anything in terms of the ones that aren’t part of the seven? I imagine that they will change in terms of resourcing. It’s just a function of how you’re going in, but just wanted to make sure that I clarify that. Thank you.
Rick Dierker: Yes. So, the second one first. We’ve been managing the business with classifying our brands in a certain way for a very long time, and we resource those brands in a certain way, depending on the classification. And that is not changing, right? That’s our internal. This is to help simplify when we talk outside what those brands represent and narrow the conversation, because those are what are driving kind of whether the top line moves or margin expands or earnings. So that’s kind of the purpose. Your first question on SG&A, I think you’re talking about the outlook, really, the evergreen model. Yes. Yes, dollars are higher, in general. We’re getting leverage for two reasons. Really primarily because of we’re growing faster than the top line is what we’re doing.
We’re also spending money, as we’ve been talking about for a long time, on investments in analytics, automation. We’re trying to take hundreds of thousands of hours out over the next three to five years. And we’re not going to reduce people. We’re going to not add people when we scale, right? We’re making these system investments and ERP systems, not so that we can have a workforce that’s reduced, because as we grow from $6 billion to $7 billion to $8 billion, the ERP system can handle that type of growth. So that’s a short answer.
Matt Farrell: Okay. I think we’re good. Hey, thanks, everybody, for joining us.
A – Rick Dierker: Thank you.
