But that was basically what we saw in terms of Latam impact only — I’m not saying consolidated results, but Latam impacting margins for Q4 of 2022. And of course, you can get more information on the IAS 29 and the hyperinflation, on how we account for that in our financial release, right, in the ITR. But that was basically just to answer your question on how to quantify that. I think that goes a little bit to what I just said. Now, the impact on G&A, of course, in Q4, there was a significant impact, especially when we look at Avon Latam and Avon International. So basically, let me start saying that, again, that we’re phasing off expenses. And it’s not only related to incentives, right, that we’re phasing off different expenses, Q3 to Q4, and also Q4 to Q1 of this year, that impacted the results of the quarter, right?
Also inflationary pressures on G&A, in the case of Latam costs related, of course, to and, of course, as well, which will continue to invest for the Natura brand. On the incentives part, I want to be a little bit clearer, right? First of all, this is not again, an allocation to one person or to only a group of individuals, right? This is basically an extraordinary change that the company did in the half of the year, in which we try to allocate a higher weight of incentives to cash flow performance as we have communicated to align on our priorities, right? Of course, that was an extraordinary change that we did in 2022 with also the clear separation of H1 and H2 results. Now we have accrued basically none to very little incentives in the first nine months of the year, and with the stronger cash performance coming in the second half, especially of course, given by the high seasonal Q4, that’s where again we saw the higher impact given again that we have communicated and we’ll continue to communicate, the cash flow is a strong priority for ours.
Now you should not expect that level of G&A as part of the underlying business, just to be clear, okay? So that was — Q4 was impacted by significant one-offs. One of them being just what I described. But going forward, I should not expect to see the same levels of G&A, not for Latam, Avon International or for the group. I’m going to pass to João just to see if he has anything else to mention about Latam. And then I’ll come back to answer your last question on leverage.
João Paulo Ferreira: Thanks, Guil. I do want to comment, Joseph. So as I read most of your reports earlier today, I fully understand that the EBITDA margin of — Latin American EBITDA margin came as a negative surprise. However, I just want to reinforce my full confidence on our journey to recover profitability. And I wanted to take you through some of the elements. As just mentioned a few minutes ago, our business in Brazil are doing extremely well. Natura, a highlight and Avon stabilized and with improved profitability. In Hispanic Latin America, we faced some macro headwinds. But as we speak, in Q1, they are less strict than they were in Q4 in Argentina and Chile, and Peru. And Natura brand has proven a bold story of profitable growth there.
And as regards Avon, all the restructuring that we are doing, which will create turbulence in terms of top-line, is targeted at improved profitability and cash generation. Moreover Sorry. So I hope, I’m still on. So then I was… What’s going on? Okay. Sorry for the Joseph, are you hearing us?
Joseph Giordano: I’m still here, but I’m hearing the operator.
João Paulo Ferreira: Okay. Shall we try again? Just a second, people. Okay. Yes. Shall we try again?
Operator: You guys are back.
