Tobias Hestler: And maybe just to add too little builds to what Brian said, on — just on the 58% of the business gaining share, just a reminder that covers over 90% of our revenue. So this is really our full business, all the brands, all the markets wherever we get market share data, so it’s a really holistic measure against the £11 billion of revenue that we have. And I think I just want to point that out a bit. So, I think really strong number overall.
Olivier Nicolai: Thank you very much.
Operator: The next question comes from Mikheil Omanadze, BNP Paribas. Please go ahead.
Mikheil Omanadze: Hi, thank you. One question one follow-up for me please. Can you please comment on the consumer environment in your categories? Are you observing any down trading at all in your key markets? And in terms of the follow-up just to make sure I understood correctly you said that longer term, you are targeting your organic growth to be roughly half and half split between volume and price and that 2024 will be a step in that direction. Does that mean that you expect pricing to still be a higher contributor of growth in 2024? Just to make sure I understood this correctly. Thanks.
Brian McNamara: Great. Thanks for the question. Let me take the first and I’ll pass it to Tobias on the pricing. As far as the consumer environment in key markets, I think we mentioned a bit it does change geographically a bit on what we see. And as I mentioned before, Asia continues to be quite strong, low inflation in that market and we can see this good volume growth. If you look at the U.S. environment, it’s been a bit tougher environment in the sense that we’ve seen kind of volume declines in certain categories. But what I would say is it’s really a category-by-category first. So, as immunity category, as we shared, saw a significant decline because of the explosive growth that happened during COVID. If you look at respiratory, in the first half, we saw good growth and then in the back half due to seasonality, we saw that category decline.
And on oral health, we’ve continued to see real strength in that category going on. As far as down-trading and private label and U.S. would be the largest private label market we’re really not seeing that on a broad basis and across our portfolio. Actually overall in private label in the U.S., we’ve gained share. Now, it’s different category-by-category, smoking cessation a little different. It’s a higher-priced product. But I’d say overall nothing material is happening that’s impacting the business overall in that way. Tobias?
Tobias Hestler: Yes, I think you understood this correctly. So, there will be more of our growth coming from price than from volume next year. So, it’s a stepping stone in that direction. In the medium term, we think we’re going to be back at the round of 50-50 outlook, the 50-50 was 60-40, 40-60 depending on the year when you launch and how you take price. But a stepping stone in that direction, but clearly still more skewed to price. But significantly less than it was last year with the seven one or 85-15 between the two years.
Mikheil Omanadze: That’s very clear. Thank you.
Operator: The next question comes from the line of Tom Sykes Deutsche Bank. Please go ahead.
Tom Sykes: Thank you. Morning everybody. Firstly just on China OTC and I guess the renewal of the China route JV is to you in September is there anything you can say on that and whether any terms will change and maybe what phasing of China OTC does to the phasing of group ability? And then just on North American growth are you seeing any impact of increased OTC allowances from insurance companies? And do you get a sort of flushing of FSA eligible or accounts for FSA eligible product in Q4, which rather accentuates the seasonality at all of OTC? Thank you.
Brian McNamara: Great. Let me do this. Let me mention OTC China. I’ll touch on your U.S. question. I’ll have Tobias talk about the status of the joint venture. So, first of all, in OTC in China, if you remember a year ago when COVID lockdowns came off, all the sales restrictions on our products like [indiscernible] which is an ibuprofen pain reliever and contact [ph] cold and flu product. We saw a significant demand for two reasons; until restrictions were taken off and COVID went through the country and we treat those symptoms. So very proud of the way our China organization will react from a supply chain demand quadrupled overnight and we’re able to really react and help meet that demand. And that certainly will be a factor for our China business in Q1 and Q2 as we look forward now.
That’s already incorporated into our Q1 guidance, which we said will be slightly below our full year 4% to 6% guidance. But overall we feel very good about that market and our business there and it grew at healthy double-digits in 2023. Our North American growth and the impact of the FSA really no impact to speak up, we think they’re good to have in place. And it’s good that people can use those funds in a tax-free way to buy OTC products, but I would say there would be no analysis that we have to say ahead of any material impact on our business. Tobias, do you want to talk to China joint venture?
Tobias Hestler: Yeah. So look on the joint venture. So we’re in — as you can imagine we’re in discussions with our partner. I mean, I’ve said before, this is a joint venture I think where both partners need each other. And I think so we’re very confident on the continuation of the –of the joint venture and we would update throughout the year, if there’s anything that would change in that. I think this is a joint venture that has done well for us. We’re very happy with the performance. Our partner is very happy with the performance. So I think from our perspective, no concerns on that. And if there’s any material change we would of course tell you timely. And also from a phasing point of view, I think, in the back of my deck you see, I mean, remember Fenbid, but not all the Fenbid growth last year is going to disappear again, because Fenbid came back from a reduced use, because it was blocked for sales before.
