I would say that teams have aggressively moved to claw back some of those distribution losses. And so as you look to the balance of the back half of the year, we expect distribution wins to be a tailwind and not a headwind as we get into Q3 and Q4. So a lot of hard work in the distribution. I don’t want to get into specific customers and certain products, but you’ll see them hit shelves here in Q3 and Q4.
Rob Ottenstein: Terrific. Thank you very much.
Mark LaVigne: Thanks, Robert.
Operator: Thank you. Our next question comes from the line of Andrea Teixeira of JPMorgan. Please go ahead. Your line is open.
Andrea Teixeira: Thank you. Good morning, everyone. So can you comment on your online channel performance for Batteries? You mentioned just recently that you saw an opportunity online, but that by the same token, is also the most fragmented channel. And I remember in the past few quarters, it was one of the areas where you had the most deceleration or in a way, some sort of like increased — obviously increased competition against private labels. So if you can comment on how your share stands right now and how you’re thinking in your model. Thank you.
Mark LaVigne: Good morning, Andrea. I think the best way to describe it, and a lot of this is limited the information that we receive from an online standpoint. But what we’re seeing is we’re continuing to see healthy volume growth in online. You’re continuing to see healthy value growth online. In the past quarter — in the October-November-December quarter, we were able to match online growth, both in terms of volume and value. So our share from our estimates is probably flat. We’re not losing share, We’re not gaining share at this moment. But I think a really solid quarter for us in the online channel in holiday, which was, as you know, a very critical quarter for us.
Andrea Teixeira: And if I can — that’s encouraging. And then if I can just go back to the Project Momentum as you raised the $30 million, and I believe in August you had included 2025 into the program. So where — number one, where did the $30 million come from, the additional? And when should we — I think you didn’t change the amount that is going to be in 2024, but I was wondering if you can mention where it came from and where we should be thinking of the extra $30 million lending. I’m assuming that’s ’25.
Mark LaVigne: So the extra is certainly in ’25. We did keep ’24 between $55 million and $65 million in savings. The balance of the program to hit in ’25. As I mentioned on one of the previous questions, it’s really broad-based across the program. It’s 70/30 split gross margin SG&A. That’s a little different than when the program started, which was 80/20. We did add a third year as we continued to find additional opportunities throughout the program, but really excited about the benefit it’s going to provide for us and our ability to deliver ongoing earnings momentum in the business. And so tremendous work. It’s broad-based. The teams continue to work hard and execute against the program. I would say 70% in gross margin, 30% in SG&A, and with the $55 million and $65 million in ’24 with the balance next year.
Andrea Teixeira: That’s great. And then if I can just squeeze a bit of the Rayovac kind of repositioning. And as you gain more shelf space in bricks, do you see the need for pushing because obviously when you’re growing and the market was premiumizing, do you see the need of positioning Rayovac as like an entry-level for you, which has always been, but just to see if you’re looking at this additional shelf space to be positioning and to protect the entry-level battery market or not?
Mark LaVigne: Well, Andrea, I think we’re perfectly positioned in the battery category to really lean in with retailers and solve any of the sort of strategies or issues that they’re trying to connect with consumers on. And I would say our full portfolio, the fact that we go from value offerings all the way up to super-premium with lithium is a unique advantage that we bring. I would say the goal is to source Rayovac volume from private label and to make sure that we continue to keep consumers in the branded side of that business. That’s an important element that Rayovac plays. Obviously, our flagship Energizer brand will continue to be our emphasis and continue to be the bulk of the distribution that we see. But it plays an important role.
I don’t think it will take outsized — have an outsized impact on our overall share or our financials. But it is a key asset that we have that we leverage very tactically as we work with retailers to solve any sort of the issues that they’re looking to solve.
Andrea Teixeira: Thank you. I pass it on.
Operator: Thank you. And our next question comes from the line of Hale Holden at Barclays. Please go ahead. Your line is open.
Hale Holden: Good morning. Could you give us any change or update to what you’re seeing on input prices and the overall inflationary market or environment or deflationary environment, and how it may fall out for the rest of the year?
John Drabik: Sure. Yes. Yes. For the rest of the year, and specifically to materials, it was slightly negative in this quarter, but we’re looking for pretty consistent improvement going forward. We’re calling for about 80 basis points of gross margin full-year improvement, and the biggest benefits really coming from lithium, zinc, steel and R-134a. So we do have some tailwinds coming in from direct input cost.
