Danniela Eiger : Hi. Good morning. Thanks for taking my question. I have two from my side. The first on Aesop. Something that caught our attention was actually the restatement of the past results of the company, mainly on the gross margin line. If you could just provide some color on why that was done throughout the past quarters? That would be great. And also, I think that, that one is for Guil is mainly related to leverage. The picture of the quarter called the attention, especially when looking at EBITDA ex-IFRS reaching almost 8x. I understand that you don’t have like a short-term financial issue in terms of liquidity, because you actually — sorry, not sure if that was cut. But I understand that, you don’t have any like short-term liquidity issues. But just wondering, how we should think about the deleveraging process in terms of leverage to get that done and also the speed throughout the quarter? Thank you.
Guilherme Castellan: Thanks, Danniela. So just to confirm, your first question was on the Aesop standardization in terms of the gross margin, from SG&A, right, a reclassification that we did. And the second one was related to leverage and how we see that going forward. Is that correct?
Danniela Eiger : Yes, that’s it.
Guilherme Castellan: So again, the Aesop was an adjustment — an accounting adjustment that we did. So there is no impact on previous numbers in terms of EBITDA, or net income, right? So it was just a reclassification from some logistic costs that were sitting in selling expenses and basically, they were reclassified to the gross margin, right? That’s why, again, there was a negative impact when you look at the gross margin of the company. Even though it was just an accounting reclassification to standardize the way that we look at numbers correctly across the BUs, right? But again, there’s no — as you can see, there’s no impact in previous numbers in terms of EBITDA, net income or anything below EBITDA. Just to be clear on that.
And that will be the way that we’ll continue to present this Aesop’s numbers going forward. Now on leverage, in particular, right? I mean we — of course, we finished the year with a high leverage, and that is mainly explained by the very low reported EBITDA in the quarter and of course, in the year, right? So the reported EBITDA of course, was impacted by the performance of the business, needless to say, but also through several one-offs impacts and those one-offs are transformational, restructuring, corporate rightsizing, and impairments, which were again a big number, especially in Q4 of the year, which brought the reported EBITDA of the year to low levels compared to historical numbers. And of course, if your denominator is low, your leverage is high, right?
Despite the fact of course, that we have a significant improvement in terms of cash conversion, and that will remain the focus. So on that, I’d like to say that, of course, we continue to focus as a company all across the BUs and in the Holding, we continue to focus on our two priorities for 2023: EBITDA margin, and cash flows. So margin has to improve right again — 2022, with less than 9% adjusted EBITDA margin in the year. And of course, that number has to significantly improve going forward and the BUs and the teams are working on that. And we need to continue our efforts in terms of cash conversion, right, which again, we already start seeing that in Q3 and Q4. And that effort will remain in 2023 in order, of course, to continue to reduce the net debt impact.
