We’re watching the legislation in Congress as well, that would be helpful to us. So I guess, summary, a lot of moving pieces. We like leveraging our scale on the conversion side for one, and two, we got improvement in projects on both the net working capital side continuing in ’24 and we’re kicking off a lot of work on tax as well. So look, I like that 50% number. It’s obviously we’re not guiding to that in ’24. But I think as you look out, you can see us increasingly get — you can get confident increasingly that we’ll get there.
Chris Moore: Terrific. Appreciate that. I will jump back in line. Thanks, guys.
Operator: Thank you. Next question comes from the line of Vlad Bystricky with Citigroup. Please go ahead.
Vlad Bystricky: Hey, guys, good morning. Thanks for taking my call.
Brian Schopfer: Hey, Vlad.
Thomas Logan: Morning, Vlad.
Vlad Bystricky: Hey. So maybe just to start off following up on Chris’ question there on cash. Obviously, we know cash has been a big focus for Mirion. So can you just talk about a little what’s changed over the course of ’23 to support improving cash flow and then how you’re thinking about your level of visibility to working capital as a source of cash for ’24?
Brian Schopfer: Look, I think what’s changed is, first off, I think the macro coming out of ’22 is improved. I think as you heard us talk, I think it was in 2Q or — on the 1Q call, but it was in 2Q, so May, about the heavy focus we were putting on this in the back end of ’23. So our discipline for sure has changed. The amount of resources we’ve specifically dedicated to this, right, we talked about our performance excellence group coming in and helping in many of the areas. And just fundamentally a big focus on our kind of sales and planning processes across the company. So it’s really about operational improvements and doubling down on making sure that happens. But look, I mean, I’ve said this all along. This isn’t something that changes overnight.
It takes quarters and many quarters. I think you’ll see us continue this journey in ’24. We’re very focused on it. We’re very, very focused on it. We’ve said we like net working capital as a source of cash this year. So that’s a big commitment from us. And this is something we’re going to continue to double down on, both from a resource standpoint, but also a priority standpoint.
Vlad Bystricky: That’s helpful color and it’s nice to see in the results. And then maybe just shifting to Medical. Organic growth actually ticked up on a tougher comp sequentially. So can you just talk a little bit more about what accelerated in Medical in the quarter and whether there was anything unusual or one-timey in the shipments in 4Q?
Brian Schopfer: I mean, look, in the back half of the year, I think it was late August, early September, we had new products come into market, I think in Europe specifically, that had some heavier volumes kind of in the fourth quarter for us. But look, that team is just — they have delivered for us all year and candidly, even if you go back to ’22, too. So I think there was one specific new product that was a bit heavier than maybe usual, but that phasing for us isn’t abnormal with the fourth quarter being a really strong quarter for us. And — but it’s just great execution across the board, honestly. By the way, I’ll take this moment. I mean, I think that’s why we like mid-single-digits in Medical again this year. I mean, we continue to kind of — this was a — it was a good year in Medical kind of 8%.
So high-single-digit growth, comping a 15% organic number the year before. So I think we’re just — we want to make sure we set the right expectations and we’ll continue to evaluate kind of what the Medical growth rate looks like as we go in this year.
Vlad Bystricky: Got it. That’s helpful. And then just one last one for me and sorry if I missed it. But can you talk about your expectations for pricing in ’24 and how are you thinking about price versus cost playing out for the year?
Brian Schopfer: Yeah. So we didn’t put out a specific number this year. I’d like to candidly get away from signaling our pricing expectations to our customer base. But I think the thing I’ll say here is a) we’re very focused on rate in ’24, right? So making sure price-cost is rate-positive, not just dollar-positive. But I think more importantly, we’re doubling down on the cost side of the equation in ’24. Look, we’ve spent a lot of time with the team on pricing over the last 24 months. And I think that’s now becoming and has become more ingrained into the business. And we’ve always been a cost-conscious organization. But I think with all the inflation, that’s kind of been put in the fact that we haven’t been able to get rate on price-cost.
Tom and I, we’ve been working with the broader team about how do we double down our focus on cost, mainly around material and indirect spend. And we’ve kicked off a bunch of work streams across the company in this. And I think that’s probably flows through kind of more in the back half of the year, right, one, that’s why we’re so focused on inventory turns as well. So how do we turn that inventory out faster to get the benefit of some of this stuff? But two, this stuff takes a little bit of time to kind of get ingrained into the business. So, didn’t give a number. So you didn’t miss anything, Vlad. But I would say, again just a summary, price, I think we feel good about it being ingrained culturally into the company and we’ll continue to do everything we can there and more.
But I think we’re doubling down this year on cost.
Vlad Bystricky: Great. Thanks, Brian.
Operator: Thank you. Next question comes from the line of Yuan Zhi with B. Riley Securities. Please go ahead.
