João Paulo Ferreira: And just to add, if you allow me, in terms of Avon International. We are revisiting our presence in countries which are not profitable, and we will invest in countries which are growing and being profitable. But revisiting the ones which are not profitable means also going from full presence possibly to head franchise possibly, to distribution possibly, to an exit. So all this — and that’s depending on our penetration, our brand, it depends on what kind of agreement we can reach. And at The Body Shop, it may be something like that. Although we are more — we have largely with head franchise went outside the key countries. But just to clarify that is not from presence to exit, but there are scales in what kind of presence we want to have in markets where we may have some opportunity, but with no investment, investment only in the countries where we have seen growth.
Guilherme Castellan: And just to be clear, sorry, I make a correction for us, was not clear. The Europe plan that I announced for Avon is basically, the merge of CE and Western European one cluster, is the marketing and the brochure plan, and of course, some leadership positions. But as I mentioned, we’ll continue to focus in the right markets for that region. So I just wanted to clarify this.
Robert Ford: And just one little follow-up and that is, JP, can you comment a little bit about the momentum for Natura Brazil going into early 2023 please?
João Paulo Ferreira: Yes. Well, it’s a strong operation that remains strong as we speak.
Operator: The next question comes from Joseph Giordano of JP Morgan.
Joseph Giordano: I have a few ones that went — are still to touch upon on Latam results. So first, I’d like to see if you can help us quantify the impact of IAS 29 impacts on the conversion of Argentina sales, given hyperinflation? So Guil just mentioned like headwinds and tailwinds, we saw that throughout the region in companies that are operating in Argentina, that results for the fourth quarter actually had like massive accounting headwinds that actually distorted the P&L in the sense that it kind of hides the material cash flow improvements you guys have been showing. So that’s my first question. So try to quantify a little bit the IAS 29 impact on Latin America. The second one is about the higher bonus provisions. I think like the market wasn’t expecting such provisions given the EBITDA decline.
So my question to you — and again, like the EBITDA decline, and it goes back with the cash flow improvements, right? So maybe the EBITDA is not a good proxy in Latin America to the cash flow generation at this point. So my question to you is like what changes in terms of KPIs for the variable compensation? And last but not least, like, if you have like any kind of like short and mid-term leveraged targets to kind of guide us through the potential improvements of the free cash over the next quarters? Thank you very much.
Guilherme Castellan: Thank you, Joe. Let me start of course, answering your questions here and I will pass through to João if he wants to say anything else about Latam. And so on the IAS 29, to your point, right? As I mentioned in the previous answer, we had a headwind in Q4 coming from Latam, of course, when we say Latam, we’re talking mainly about Argentina, right? Now to quantify that, you can estimate that the headwind impact on margin was around 70 bps, right? It’s not again, that meaningful given the weight of Argentina in Latam but was significant given, of course, what we saw in terms of hyperinflation and the FX dynamics in the country, right? So again, it’s very difficult to estimate and to project what that impact is going to be in 2023.
