A great part of that is coming from Fashion and Home and the bulk of the inventories reduction is coming from finished products. So we are in a very good position right now in terms of supply and service level at least in our view. Now, of course, as we mentioned, there is seasonality that impacts the business but the important is — the important thing is that when you look at the 12 months combined, we continue to deliver optimizations in terms of working capital as percentage of the revenues. On the payable side, we remain flat in the year, mainly caused by a reduction in CapEx and of course by lower expenses as well in terms of some important items in Q4; lower purchase, which impacted of course the payables items. Even though we have implemented in the second half of the year some important actions that we are confident that we’ll continue to see results going forward in 2023 and receivables in particular, of course, negatively impacting the cash flow.
But that’s a mix of BUs. As you know, most of our receivables, they sit in Latam, and with Latam in particular, Brazil, showing strong growth in the quarter, again, with Natura growing more than 17%. And Avon for the first time in the last six quarters in positive territory, posting high single digits in terms of growth with Fashion and Home actually, in that equation. That is why again, we’re seeing the headwinds in terms of receivables. In CapEx as well, again, as I mentioned optimization that you should expect to continue in the same theme of cash tax rate. So in terms of seasonality, again, there is of course, quarters that impact the cash flow. But the important thing is that when you look at the 12 months — past 12 months, this number has improved and will continue to improve with our actions that we’re taking.
We’re confident on that and there mobilized on that topic.
Operator: Next question comes from Andrew Ruben of Morgan Stanley.
Andrew Ruben: I’d be interested to hear more about the Wave 2 integration plans, and specifically, how that’s going to differ for Brazil versus the rest of Latam? We saw in the release some of the regions Wave 1 and Wave 2 would occur simultaneously. So curious what that would involve? And then you mentioned with integration costs that could be offset within Latam asset divestment. So curious if you could provide more detail on what that might include as well? Thank you very much.
João Paulo Ferreira: Hi, Andrew. JP here. So as previously announced, we’re starting Wave 2 in Peru in Q2 this year, which followed by Colombia and Brazil in the second half. Indeed, we are looking at assets — divestment of some assets that could partially offset the investments related to the implementation. And the difference in Brazil is — well I think it’s twofold. Brazil is the largest, so we need to be mindful of how to implement it in a sort of phased way, although to get it behind us before the end of the year. And the other thing is that Avon in Brazil has already gone through most of the structural changes which are necessary for this combination, which is not the case in every single country. So when you look at Peru, the first one we are doing, I mean, there we are simultaneously making structural changes to Avon’s business commercial model and combining it with Natura.
So that puts additional pressure on the Peruvian operation, which would not be the case in some other countries. But these are the main differences.
Operator: That’s all the time we have for questions today. I would like to turn the call back over to Fábio Barbosa for closing remarks.
