Aaron Erter: Yes, it’s a great question, Andrew. We are confident that we’re outperforming the market in which we’re participating in, particularly as we look at our R&R growth and you see some of the numbers as it relates to ColorPlus, but we are confident we’re outperforming the market in which we participate in.
Andrew Scott: Okay, we’re going to get a long time to get a bigger better data sample there. Second question, when we’re in New York, I think it was, Aaron mentioned that one of the reasons you’re appointed was the need to sort of add a level of corporate infrastructure to get Hardie’s to probably the — what is warranted for a company of this size and scale. Just interested in your observations there. You’ve been there a little bit longer and maybe what we should expect coming forward on that cost line.
Aaron Erter: Andrew, are you speaking of additional process as it relates to the — we think of corporate?
Andrew Scott: Correct, corporate infrastructure, et cetera?
Aaron Erter: Yes, it’s a great question. I think the big thing that I’m looking at here is how do we prioritize? And now are there ways that we can shift costs, right, from a prioritization standpoint. So, one of the things that I just did recently is I had our lead ESG person come right into me, report directly into me, also our Chief Information Officer writing to me. So I wouldn’t say that we’re going to see a lot of additional costs initially. I think we’re just going to reprioritize, and have a better focus on what really helps to accelerate our strategy.
Andrew Scott: Thank you. I’ll jump off.
Aaron Erter: Thanks.
Operator: Thank you. Your next question comes from Sam Seow at Citi. Please go ahead.
Samuel Seow: Well, thanks, guys. Appreciate the time. Obviously, not the best one in outlook. But looking forward, I think the 28% and 30% margin target is fairly positive actually. Just want to understand thinking about what’s offsetting that reversal with fixed cost leverage? And I mean, is it continued growth in mix or costs coming off? But yes, keen to understand the factors there, whether they’re sustainable through FY ’24?
Jason Miele: Yes, Sam. Thanks for the question. So I will start by saying, you’ll see in Q2, we delivered on what we said we would from a margin perspective, last quarter in August when we spoke. So we said we delivered that through the price increase primarily. And that’s what’s happened. So we delivered 250 basis points accretion in Q2 versus Q1. Certainly to your point in the back half of the year, the volume number will be lower. But as Aaron mentioned on the call, it’s — it will still be our second highest half of revenue ever. So you still do have a robust top line that helps us deliver still a strong margin in the top end of that long-term range. So I think it’s the continued price accretion as well as mix and then cost control, as Aaron mentioned earlier.
Samuel Seow: Got it. And I guess, a couple of years ago, you did upgrade your margin targets. But when I look back at those targets, you actually put a cap on them for 3 years, it looks like. So just want to understand why you put that cap . And I guess, Aaron, perfect timing as the new CEO, what are your thoughts about extending those ?
Jason Miele: Yes, Sam, I think at the time, we could see out 3 years, we felt that was the appropriate change. I mean, it was a big change. We’re changing a 500 basis points from a long-term range of 20% to 25% to 25% to 30%. At the time, we felt signaling a 3-year period, which was kind of a period of time we do our planning for, made sense that certainly not at Aaron’s on board. We’ll revisit that and make sure we provide clarity.
Samuel Seow: Thanks. Appreciate it.
Operator: Thank you. Your next question comes from Daniel Kang at CLSA. Please go ahead.
