Steve Powers: Okay. Thank you for that. I guess kind of just stepping back a little bit, there’s been a lot of investment that you’ve highlighted over the course of time in Personal Care, not just the past year, but the past few years, product quality, marketing, commercialization, et cetera. And I think you see the results in relatively strong market share trends and organic growth. I guess on the other side, Consumer Tissue and KCP continue to lag and struggle from a volume perspective. So, I guess, as you think about ’24 and both the relative balance of investment and the relative balance of contribution to growth, can you give us a little insight into how you’re thinking about that, and how we should think about how those businesses are likely to trend relative to one another in the year?
Mike Hsu: Yeah. I’ll just — I’ll make a couple of comments and then Nelson maybe can give some additional detail. But look, see, I would say we are running our Consumer Tissue business, some might say externally, a little differently. I look at our Consumer Tissue business and see it as a premier consumer franchise and I’m proud of the strong margin recovery that we’ve made over a short period of time in this business. To note, I would say, on a volume basis, if you look at North America for the quarter, our organic and tissue was up 3% and the volume was up 2%. I’m very excited about the volume kind of resiliency in that business. I think it reflects the essential nature of the category. As you know, you’re not moving away from the bath category, no matter what the condition is.
And so, we recognize we have an important kind of responsibility for consumers. But I think the thing that changed in the past few years, first of all, the amount of inflation that’s occurred on our overall business, but especially tissue, has been, not to be dramatic, but fundamentally historic, right? Two years in a row of 2x what the all-time high ever was, right? And so, our teams have done a phenomenal job, I would say, recovering the margins on the business that were necessary to keep that franchise healthy going forward. A couple other things that we’ve done to improve our ability to manage the business better is, better risk management tools to get us more stability from costs. And hopefully, you guys are seeing that. We’re not talking a lot about that, but with Nelson coming in, we’ve changed some of our practices.
With Tamera, our Chief Supply Officer, coming in, we’ve changed some of our supply chain practices. And so we’re trying to reduce the volatility of the input costs. I would say if you looked at the margin recovery, the biggest driver is really, really disciplined application of, we call internally, revenue growth management tools. But if we had not made those investments over the past five years, we would not have been able to move at the pace we moved over the last two years on revenue management. And then, probably the most important thing going forward is the fact that we’re driving value-added innovation. And we recognize as a consumer franchise, we have to have a great offering, a superior offering. I mentioned in the UK Andrex, I think we hit about a 33 or 34 share in the quarter.
Our price gap has widened over the past three years, but our quality has improved significantly. And we’ve invested in new technologies in our European tissue business that’s allowing us to differentiate that product. And so, we feel good about our position on tissue. There are some pockets of challenge, some markets can be very tough and we’re able to operate in those. But we’re really pleased with the kind of rapid recovery of margins and how our teams are managing that business right now.
Nelson Urdaneta: And just to build on what Mike was saying and address the investments, over the last few years, as you would have seen, we’ve stepped it up both on advertising support for our brands and the capabilities that are allowing us to emerge much stronger from this super cycle of inflation that we’ve seen. Specifically, for 2023, our advertising budget overall increased to more than 5% in net sales, which represented roughly about 100 basis points of increase versus the prior year. And that’s about $200 million in absolute terms. As you think about this year, Steve, we will still keep expanding that, but it’ll be at about half the pace of what we saw in 2023. And the other bit is in terms of overheads, which would include some of the capabilities we invested in, we are projecting overheads for the year to be largely flat in dollar terms year-over-year.
