Olivia Tong: Great. Thanks. Good morning. First, I wanted to talk about China and the reopening. And now that reopening is happening, what can go into place that wasn’t (ph) over the last couple of years? And could you talk a little bit about how much opportunity there is for you to grow shelf space and the conversations that you’re having with your folks on the ground or with retailers, particularly in Travel Retail? Thank you.
Sue Nabi: Yes. Good morning, Olivia. Thank you for this question, which is indeed a very important question. Again, just to refer to our (ph) last week in Amsterdam, we had people from all around the world, spending a week for the first time since many, many, many, I would say, months and quarters altogether, including the Chinese general managers, the APAC general managers, everyone was in the same room, in the same place, spending five days discovering all the new innovation for fiscal ’24 and above. And I can tell you that the level of confidence I have seen on the faces, specifically the Chinese general managers and teams and marketing director was a very, very strong sign of how they see Coty in this market where the opportunities are almost endless for a company like ours.
What do we do better? And again, in a way, if I may say, I love to give this image of sometimes, destiny needs to help you, in a way. We had two years and a half to strengthen, to prepare, to strengthen our fragrance business, to strengthen our makeup business, specifically on the Prestige side, to put ideas, intelligence and marketing behind the brand like adidas or Max Factor that are two big brands in the Chinese market, and last but not least, to fully prepare for our first skincare launch in China, which is happening in next month as we are speaking. So, in a way, this is what’s different. It’s absolutely not the same Coty, but we’re starting doing beauty business in China in March than the one that was doing business just two years ago.
Operator: Our next question comes from Andrea Teixeira from J.P. Morgan.
Andrea Teixeira: taking my question. I was just like hoping to see if you can talk about a little bit of the Prestige side in terms of like how you parse out skin? And I know Lancaster was a big launch vis-a-vis fragrances. Of course, I mean, fragrances are the main motor of that. But I was wondering the exit of the quarter, we did see not to take credit for it, but we did see the deceleration for the quarter. And even at Russia, it’s probably coming in below expectations, and of course, understanding all of the supply chain issues. But if you can help us understand how skin vis-a-vis fragrances in the exit of the quarter? Thank you.
Sue Nabi: Yes. Good morning, Andrea. Thank you for the question. If I understood well, you were referring to the end-of-the-quarter deceleration in fragrances. And again, I do believe that this is not the way you should read the figures, if I may say. Again, I’ll reframe the story around our Q2 saying that this performance, given the shortages, given the boom of the demand, given the pipe of innovation last year, which were unprecedented in the history of Coty’s, a very, very strong performance, I have to say. So that’s really the way I see it. And I really see skincare, specifically on the Chinese market, as an additional layer and not something that’s supposed to compensate anything else. Skincare is really for us an additional, I would say, a growth driver and a new journey for the company that’s very, very important, as you can imagine, if we want to become a beauty giant in Asia.
So, really continuous performance on our fragrance business, strong performance on our Prestige business, specifically in the U.S. without China, as you can imagine, that was under lockdown during the full quarter. And last but not least, adding a new leg, which is the skincare leg starting with Lancaster. Of course, not referring, but again, you gave me the opportunity to refer to this, the launch that is going to happen also in the coming months. And last but not least, the extension with the high premium offer behind our radar that’s happening in the coming quarters.
Operator: Our next question comes from Chris Carey from Wells Fargo Securities.
Chris Carey: Hi, good morning.
Sue Nabi: Good morning, Chris.
Laurent Mercier: Good morning, Chris.
Chris Carey: So, just a follow-up on Andrea’s question just around individual category growth. I appreciate, last quarter, the body care launch had some impact that was favorable. I think if I heard you correctly in the prepared remarks, you said that growth was more balanced across your categories between fragrance and body care and makeup. Can you maybe just contextualize how category delivery was for you in the quarter on a like-for-like sales basis? And maybe what your expectations are for the full year, in the context of your full year like-for-like sales guidance? Thanks so much.
Laurent Mercier: Yes, indeed, Chris. So, I mean, what you’re highlighting, in fact, is definitely a strength for Coty’s (ph) that we have a balanced portfolio, and indeed, that we are in both divisions. Now we have, I would say, subcategories which are performing very well. Just on Prestige, I do want to emphasize, again, that, of course, we have fragrance, but now we are seeing Prestige makeup and skincare, which are accelerating and will be strong growth drivers. On Consumer Beauty, so it’s definitely also the same thing. So, Consumer Beauty, now we are seeing, I mean, strong acceleration in body care definitely. So, adidas successful innovations in Q2. So, it’s really so, it’s really in high mix in terms of high value for the consumers.
And really, we are seeing some great traction. So, it’s coming on top of color cosmetic and mass fragrance. So, indeed, this is a great acceleration. I want to highlight also that we have also very strong performance in Brazil, okay, where body care is — we have done a strong brand. And also, we can also create some cost synergy — synergies with the rest of the business. So, this is definitely a strength for the company. So — and definitely — to conclude on skincare, so this is definitely what we’ll accelerate in H2 and beyond, of course, in fiscal ’24 and fiscal ’25.
Operator: Our next question comes from Linda Bolton-Weiser from D.A. Davidson.
