Operator: And our next question will be coming from Todd Brooks of the Benchmark Company. Todd, your line is open.
Todd Brooks: Boiling down kind of qualitative commentary. It sounds like maybe low to mid-single-digit volume growth in the combined business, pricing waning over the course of the year. Tom, I just want to follow up on Connor’s question. You talked about needing to be back to a deflationary environment to return to historical margins. But I guess there’s an intermediate place where if we are seeing less inflation, you still have a little bit of effective pricing in the first half of next year. Do we expect to start that path back that this is a year where we’re not just kind of operating to protect gross profit dollars, but we can actually see the margin rate start to work its way back towards historical levels, at least get that process going?
Tom Pigott: Yes. Certainly, Todd, that is a goal of what we’re trying to achieve in terms of both driving the productivity and the PNOC. Just in this environment, we’re not necessarily seeing enough to really commit that to you in terms of a significant level of margin accretion as the year progresses. But certainly, that is our key focus in terms of driving for improved margin percentages.
Todd Brooks: Okay. Great. Secondary question. If we go to core SG&A spend and backing out project and the changes year-over-year. How much do you think core SG&A needs to grow, if any, in fiscal ’24 for what you’re trying to accomplish? And then can we walk through what the next step down in project expenses should be fiscal ’24 versus fiscal ’23?
Tom Pigott: Yes, Todd. So as we’re looking at SG&A in fiscal ’24, we’re excluding Ascent, we’re really just looking at inflationary impacts in terms of core SG&A. And then with Ascent, we’re projecting that to be an approximate $20 million tailwind in the next fiscal year as that project winds down.
Todd Brooks: Okay. So 10 versus the 30 this year?
Tom Pigott: Yes. Yes, roughly. That’s correct. The absolute spend, about 10 as we wind things up and optimize, yes.
Operator: And our next question will be coming from Andrew Wolf of CL King. Your line is open Andrew.
Andrew Wolf: I don’t know if you mentioned anything regarding quantification of the 3 somewhat transitory or maybe fully transitory impacts to gross profit in terms of Horse Cave, both start-up and I guess, ERP there and the discontinuation of a retail brand. But could you just comment on them as a group and/or separately how much it was if you quantify it and what this data play out.
Tom Pigott: Absolutely. So as we look at all 3 together, they combined to be about a $6 million item for us or 130 basis points of margin impact on the quarter. I think the overall state of play is, as you look at each one of them, certainly, the Horse Cave team has done a wonderful job, and we’ve seen that production output increase considerably in the most recent period. So we feel very good about that. In terms of the SAP inefficiencies, listen, we’ve been working through many waves of go lives, and we’re very happy to say we’re now complete and we don’t expect that to be a driver going forward. And the product discontinuation certainly we’ve taken the necessary charge, and we’re ready to move on from that one as well.
Andrew Wolf: And on the SAP or the Ascent costs, the positive swing. Is that inclusive of the increased amortization charge? Is it net 20 or is it a little less than that when you throw in the amortization charge?
