So definitely, you will see that gross margin in consumer beauty will improve quarter after quarter. And this here again with combined with the strong productivity plan that we are putting in place in consumer beauty. Big one is being platforming. We are really making sure that now innovation that we are launching across the different brands, in fact, have the same technology and it brings significant savings. So it is going to contribute significantly in the coming quarters. We keep working, as I shared before, on the strategy for the new management. So we have really a deep review, detailed review on all the value analysis of consumer beauty and we are really identifying significant value. So definitely strong focus and there is a clear trajectory to improve our consumer beauty profitability definitely in the coming quarters and in the coming years.
So then your second question was definitely on pricing. As I shared at the beginning, we have a strong pricing of it working on this stream. So they are very precise, very granular and it went very smoothly over the last quarters. So now we will do very targeted price increase. So when I’m saying very targeted price increase, that is exactly the answer to your question. It is really then when we have all the elements, all the elements, all the analysis that we do this, and it has no impact on the volume. So what are the drivers is really when we know that it is about products, where there is high demand, there is high success. And definitely, we know that, or there is a gap between, channels or between competition. And definitely, we have room to increase price and again without impacting volumes.
And we made very clear, and I repeat, and you saw it in Q1, we are making sure that, our growth is well-balanced between volume, mix and price.
Operator: Our next question will come from Andrea Teixeira with JPMorgan. Please go ahead.
Andrea Teixeira: Thank you for taking my question and good night there in China. So just on the, I mean, again, congrats on the top-line delivery. But on the Consumer Beauty, Laurent, you are just mentioning some of the efforts. And we saw some improvement in market share. Should we expect some velocity? And so I think you mentioned when we saw each other recently in terms of like how you are seeing the shelf space looking ahead and the spring resets in particular in the U.S. and the UK? So how should we be thinking as we see Consumer Beauty recovering there and in particular in those key countries? Where we are seeing more like velocity and then as retailers see that improvement, they would decide on shelf space in probably calendar 2025.
And then on the investment side, if you can help us, like, of course, there is so much reinvestment that I think investors appreciate, the overhead in SG&A total dollars in the shorter months has been around $740 million per quarter. And then you obviously ramp-up to around $800 million. Is that the way and the level of dollars that we should be working with? And sorry, lastly, on the clarification on deciding to sell or to postpone the sale, it seems that you have not reached an agreement on the pricing, I think, and I understand that. But just to think about how we should be thinking that becomes a puts into KKR in calendar 2025 and how that negotiation is that a valuation that you are looking to do or is that something that should be negotiated by the time we cross that bridge?
Thank you.
Peter Harf: Andrea, I am going to let Laurent answer on the two last questions, which have short answers. And then I will take the question on CB, which is a little bit longer in terms of hands.
Laurent Mercier: Absolutely. Hello, Andrea. So indeed, on Wella, yes, it is important. I give a full picture. So what are the elements? Number one is, definitely, that we are seeing in a very strong cash flow trajectory, in the first half fiscal 2024 and the full fiscal 2024. So definitely, this first element is giving us full confidence, to reach our leverage ratio. Number two, as you know, we implemented our dual listing end of September, and we made an offering, which was very successful. And again, this is a second element, which is accelerating our deleveraging. So definitely. And number three, just to be very clear, the point is not about pricing. I can tell you the due diligence, which was made on Wella, fully confirm the great value of the company and the pricing.
There was just, I mean, if I make it, small misalignments indeed, on minority rights. And this thing happened. But again, based on the first two elements, we came to the decision that, okay, was better to stop the transaction. But be very clear that it doesn’t change our agenda that we are targeting really the full divestiture of Wella by end of calendar 2025. The value of Wella is absolutely confirmed and you saw it in our books. And the relation with skincare is excellent and Wella is a very good business. So yes, there was your question on SG&A. I mean, the key element is definitely that we are investing, but still growing our SG&A. So we are growing our SG&A below sales growth, but it is important also that you keep in mind that in SG&A, we are making sure that we are investing on our digital capability, we are investing in our R&D capabilities.
