David Hayes: Good morning all. I have one follow-up and two questions if I can. Just to follow up and maybe appreciate a bit more on the net cost savings versus the gross cost savings. So I’m interpreting it as €100 million of gross none of it falling through to the bottom line this year really. And then looking to next year €200 million gross. Is there any way you can give us an indication of what the net benefit might be budgeted for in 2025 as you phase in those savings? And then on the two other questions. A&P spend, I think done 80 basis points potential sales in 2023. Can you just talk us through the drivers of that? I’m assuming there’s a bit of Russia suspension of A&P, maybe some agency continued rationalization post filing out of GSK, but just a bit of dynamics on that 80 basis points, would be helpful?
And then my final one, on the first quarter guidance that you’re giving close to 4% OSG, could you commit to the volumes you think will be positive within that number in the first quarter? Just to push on that as well. Thank you.
Brian McNamara: Great. Thank you. Listen, I’ll answer the A&P question and then pass it to Tobias to do your follow-up in the Q1 guidance. So first of all, on A&P I just want to be very clear that we are absolutely committed to investing in our brands and we believe investing in A&P is important. Also, investing in R&D and in our case, in the expert side of our business model, which is really important in oral health with dentists, but also with pharmacists with our OTC business. We do start A&P as a percent of sales in a relatively healthy place at 17.9%. But as you said, this year, we grew A&P 3% and as the year goes on we’re very active in the way we manage A&P and ensure we get the best returns. So for example, in 2023, our A&P investment will find oral health was very strong, and you’ve seen that come out in results.
And actually, we continue to invest in VMS, and we’re able to take share, an example on emergency, which to be showed in the presentation in a declining market, which I think positions us and strengthens us for the future. On the contrary, in respiratory in the US, where we saw lower incidences and some disruption due to some ingredient questions on PE, Phenylephrine, we actually pulled back from our A&P spend there, is a conscious choice because we feel like the returns weren’t there in that level of market. So — and so when we look across the portfolio, we are actively managing that and making sure that we’re investing for growth and we’re investing in the right places, but not investing just to invest. And then as you said, within that, there is efficiencies we’re always looking to be more efficient in our non-working A&P, and we see that obviously grow slower than overall A&P.
So there’s a number of dynamics in there. But we feel good about the investment, as Tobias said earlier, we expect in 2024 to continue to invest in A&P and drive growth and invested really higher than this year.
Tobias Hestler: Good. And so coming back to the productivity question. So look, we’re not going to split out what’s the productivity program and how much of that drops to the bottom line. But I mean, let me go back to why we did the productivity program. We did it because we want to and have to drive agility in that business, to make the business faster, more agile. And then secondly, we also did it because it gives us the comfort that we can invest into the business in R&D and A&P. And I think that’s, I think, we’re — there are slight differences to 2023. We didn’t have the tailwind from a productivity program. Going into 2024, we have this tailwind. And that helps us being able to fund the things we want to fund. And actually, that helps us that we will be able to be — to continue to be competitive in still a difficult market environment where in some places, we have seen volumes declining, and we have to battle for the volume growth that also we’re committed to get.
And I think that gives us, I think, the confidence that to be in this 4% to 6% range. And secondly, that we can grow operating profit ahead of the rate of sales growth in 2024, even in an environment out there where people might be putting more money back into A&P that they had taken out earlier. And then just on Q1, so we’re not going to split out and give quarterly guidance on price and volume, right? But if you just — I think in the backup of my deck, you see a little bit of consideration for sales growth. So, look, oral care, VMS, digestive health and other pretty clean from a run rate point of view, there’s nothing undue in the base. And then there is — we have to cycle over pain-relief and respiratory health. And you see that in the backup, and we mentioned it earlier in the call.
