So I’ve seen some of the flash reports last night at the — are we being conservative? I think we’ve been prudent. The world is still somewhat volatile. We all know that. But we are confident enough to say that we’re already seeing the trend lines, same as we saw last year, the trend lines are there. We just don’t quite know where we’ll be. So when I talked about on the script, could we see areas where we’ll have improvement? Yes, absolutely. So we’ll see as we go forward. The make call will be an important call for us because we’ll have a much better view on where we are with raw materials. Our pricing actions, we probably have about 50% of our price target for this year is simply a rollover from last year, just pure timing of when pricing was implemented.
So we feel good about the pricing side. We’re less sure about the cost side, but the trend line is there for it to get better as we go through the year. Andrew, do you want add anything there?
Andrew Sandifer : Yes. Let me just reiterate and expand on a couple of your thoughts there, Mark. I think certainly, input cost, the cost is at our COGS line, they are a significantly smaller headwind in 2023 than they were in 2022. And as Mark described, they remain a headwind in the first half, but we anticipate them becoming a tailwind in the second half. we will have growth in SG&A and R&D spending on a dollar basis. The SG&A should grow, as Mark described, generally in line with sales, R&D might grow a bit faster all of us to support growth, the addition of BioPhero, the investments in our Plant Health platform. We have moved another active ingredient from discovery into development in an active ingredient pipeline. So that SG&A and R&D dollar spending will continue to be a cost headwind as we go through the year.
That said, on a percentage of sales basis, SG&A will stay relatively flat. R& D expand slightly. But this is against the contract where over the past 4 years, we’ve taken 300 basis points out of SG&A as a percentage of sales and over 100 basis points out of R&D as a percentage of sales. So while we might not get the same kind of leverage this year, more flat on SG&A and R&D as a percentage of sales, still a very, very competitive cost structure. The SG&A more than 500 basis points lower than our nearest competitor. So I think what you’ll see through the year is that on a dollar EBITDA basis, SG&A and R&D continue to be a cost headwind, we will manage that carefully as we always have, and we’ll adjust as we need to as we progress through the year.
Mark Douglas: Very good. Thanks, Andrew.
Operator: Our next question comes from Vincent Andrews with Morgan Stanley.
Vincent Andrews: I just want to touch on the pricing environment a little bit. I think I heard you say, Mark, that you’ve already got 50% in place just sort of from a rollover of last year. Of the other 50%, how much have you already gone out with for the first half versus, I assume there’s a fair amount that you need to go out with for the back half of the year. And just want to understand sort of what you’re hearing from your channel partners in terms of continued receptivity for pricing at this point? Just thinking atmospherically, a lot of headlines about we’re all entering into a deflationary environment. We’re seeing fertilizer prices come down and glyphosate prices come down. I know those are very different products versus what you sell, but just we are sort of pivoting out of the inflationary or price increase environment. So what, if any, change in feedback are you getting from the channel partners?
