Tax was not a reason why we repay this. This is part of our liability management process, has a very expensive cost of debt, overall cost of debt. But you should assume, of course, going forward, right, and this is why [indiscernible] is so important in LatAm and the turnaround of our international assets is so important outside that, again, any leverage that we remain with the company, we’ll try to allocate, of course, in countries where we have profits in order for us to take advantage of the tax shot, right? But no, taxes was not one of the reasons. There is no tax restructuring related to the ’43s, but was an important milestone, an important step for us as part of our liability management process as this was something that we were trying to do, right, the repayment of the ’43s, something that we’re trying to do already for a couple of years.
Operator: Our next question comes from Joseph Giordano with JPMorgan. Please go ahead.
Joseph Giordano: So my question here goes on the gross margin front. I would like to understand a little bit better which were the main drivers. So, you mentioned in the release portfolio optimization pricing carryover and cost. So if you could attribute like which were the main factors behind this gross margin, how should we think about it going to next quarter, it would be great. And my second and I think smaller question is that how are you guys seeing the potential impact from the devaluation of the Argentine peso that started to accelerate recently? Thank you.
Guilherme Castellan: Hey, Joe, thanks for the question. I’m going to talk a little bit about that, and then I’m going to pass to JP so he can add anything on Argentina in particular. So, another strong quarter of gross margin. We’re quite satisfied. We’ve been in this journey, Joe, I think you probably remember since we announced this in the Q2 results of last year, right, that as the inflation was increasing across our Bus — inflation costs was increasing across our BUs, we had even a stronger focus, right, at the time, mainly, of course, at Avon International and at LatAm to focus on gross margin, right? And of course, as Q4 came to the books, we started saying the same thing about The Body Shop. And I think you saw the results in Q1.
And of course, where we are here in Q2 with very strong results, especially coming from Avon International and from LatAm. So the — I mean the main reason for that, again, being super straightforward, has been the carryover of the price increases that we have done in the last 12 months. As we mentioned in the last quarter, right, that carryover started to catch up in Q2, and we should continue to see that Q3 onwards, but we’ll continue to defend our gross margin by tactical price increases in our BUs. As we have said in the last quarter, right, most of our BUs, we did an acceleration of price increases in Q1 of this year in several countries. So now we’re being more tactical for additional price increases and of course, for reduction of promotions and things like that.
So, if you look at both Avon and LatAm, the carryover has been a very important part of that. And of course, additional tactical price increases in Q2 is also part of that explanation, and we can continue to assume that we will continue to use this weapon going forward. Now the other important topic, Joe, is that we have a complex business in terms of different countries with different margins and so on, right? So, if you look at LatAm in particular, right, not only you have the impact of category mix, but we have a big impact of country mix, right. As Natura Brazil, which is basically our highest margin, continues to overperform continues to show a strong momentum as it did in Q1 and in Q2 of this year, we should continue to see some benefit coming up from country and region mix, particularly in the case of LatAm. Now in the case of international, we see that basically coming from — the mix impact coming from categories, right, especially as Angela and the team continue to focus on cult products and skin care, and this is something that, of course, has benefited us since Q1 and we saw the same benefit in Q2.
