And so those would be the areas coupled with what you mentioned earlier, which is Aligners. Aligners continues to do really well, really strong double-digit growth for us, both SureSmile and Byte and so those are the areas of outperformance. On the EPS front, the volume benefit from these higher sales is obviously helping us overachieve. We got a slightly higher restructuring savings in the first half of the year as well. The ortho profitability doing better than we had expected because of the outperformance there and then a lower tax rate. So I think on the whole, that’s how we look at the first half of the year. And we’re very pleased with how we started the year and looking forward to continuing it in the back half.
Jonathan Block: Okay. Great color, thanks for that. And maybe I’ll try to ask sort of two quick ones. Simon, strategically on the scanner, you talked about some good results there and maybe you’re bundling with the Aligners. Are you — where you want to be strategically, in other words, do you think you need, call it, a lower end scanner when you’ve seen what’s going on with some of the prices out there? And then if I can try to jam in another question. You started the year organic sort of flattish, you’re now at 3%, but the EBITDA margins remain, call it, greater than 18%, so where are those additional dollars, where are they being earmarked and going in terms of investments? And maybe just talk to us about the return time line on those dollars? Thanks guys.
Simon Campion: Yes. So on the scanner side, with PrimeScan, we’re obviously a premium scanner with great technology available. And we did launch PrimeScan Connect in the September time frame last year. We had a really strong quarter in Q2 on PrimeScan Connect in fact, scanners, I think we had the second biggest quarter in six on unit sales in scanners and on mills. So we adapted some price on the PrimeScan Connect. So that’s not, I would say, an upper mid-value scanner that has resonated. We had traction in Europe, traction in Japan so scanners, we are pleased with the quarter, but we’re not pleased with where we are in the market and we are intently focused on bringing next-gen scanners to the marketplace. And as I mentioned, DS Core continues to be a really important aspect of our business moving forward.
We brought new incremental capability to that in Q2 that will continue throughout this year and next year and any new technology that we bring out will obviously be integrated into DS Core and leverage the cloud. So that’s where we’re around scanner and equipment, and I’ll let Glenn handle the other part.
Glenn Coleman: Yes, Jonathan, on the EBITDA margins, we have not updated our guidance since the beginning of the year. We’re on track to be greater than 18% EBITDA margins. And if you look at where we are investing, I would say, on the commercial side, North America implants, the return on that will come, I believe, probably later this year, Q4, most likely but that return should start to be felt here in 2023. The investments in DSOs we’re already seeing the top line improvements there. We do expect DSOs to have faster growth in the overall corporate average for the full year 2023. So that’s looking promising. The clinical education investments that we’re making on the implant side, on the Endo side, again, you don’t see an immediate payback for that, but we would expect to see that probably in 2024.
The ERP investments take longer, the returns on those will take us multiple years to get to but an investment we have to make now if we’re going to have a sustainable, profitable long-term business. And I would just say, given the strong start to the year, we’ve made some additional investments in certain R&D programs and certain commercial areas outside the U.S. So for example, because we’re overachieving, I’ve just given the green light to go forward and add some additional reps and commercial footprint in Japan for our Ortho team, where we see a nice opportunity. And the returns on that will be 2024. I’ll actually have a hit in 2023, but we’ll definitely see returns in 2024. And so I’m going to do some things in the back half of the year here while still hitting our commitments but really setting us up better for next year.
We want 2024 to really be an inflection year for us both in terms of top line performance and in terms of EBITDA margins and EPS. And so given the good start we’ve had to this year and what we’re seeing for this full year, I think we could do more while still hitting our commitments and setting ourselves up for better performance next year. Thanks for your question.
Jonathan Block: Thank you.
Operator: Thank you. Please stand by for our next question. Our next question comes from Nathan Rich with Goldman Sachs. Please proceed.
Unidentified Analyst: Good morning. Hi, this Is Sara on for Nate. I just wanted to dig into the 25% growth we saw in China. So how much of that was VBP volume uplift versus underlying traffic improvement and the compares? And then how was traffic trending throughout the quarter? I’d just be curious to get a sense of your expectations for China over the back half of the year.
Glenn Coleman: Yes. So in terms of our performance in China, let me just try to summarize the overall situation. I’m not sure we’re going to have the level of detail that you’re asking for. But I think, first and foremost, our China business represents about 3% of our consolidated sales to put that into perspective. We did have year-over-year growth of 25%. Sequentially, we actually even grew faster from Q1 to Q2 and a lot of that was driven by these VBP volume increases in implants. Implants had really strong growth above the 25%. And Simon made some comments earlier. We expect that the volumes now will actually offset the price erosion on a full year basis, which is very positive for us overall. As we move forward, I would expect to see really healthy growth in Q3 and Q4 coming out of China, at least double-digit growth in both of those quarters.
