Brandon Vazquez: Okay. And then last one for me, and I’ll hop back in queue. Just around Petrifilm. It sounded like from a high level, the updates were positive. Hoping you could give a little more color. You guys in terms of supply, are you kind of unconstrained at this point? It sounds like maybe not. What’s the time line to kind of get to a point where you guys feel comfortable you’re not supply constrained there anymore?
John Adent: Yes, you’re right. We’re not unconstrained. We did see the business back orders go down in the quarter. We’re continuing to work with 3M to drive performance to eliminate the back order issue. And we’re hopeful that in the second half of the year, we can get that fixed.
Operator: Our next question comes from David Westenberg from Piper Sandler. Please go ahead.
David Westenberg: And congrats on the first quarter done of the full acquisition. So you gave a lot of — you gave guidance and maybe I’m being a little bit picky here because I am pleased to get the guidance, but there’s a lot of moving parts in terms of like what core revenue is versus solid revenue. And I think you gave this mid double — mid-single digit guidance for the back half of the year. Can you maybe — can you give me some kind of a guide rail in terms of what that is for revenue like an actual solid revenue number? Because I mean, I’m a little confused on whether I should do mid-single digits on core and then I just kind of don’t know what to do with 3M? Yes — so is there any kind of framework on what that means?
Dave Naemura: David, it’s Dave. So a mid-single-digit core in the second half. If we look at today’s currency rates would imply some currency offsetting that still in a step-down level. Acquisitions other than 3M don’t have that major of an impact going forward. It gets a lot lower. So, we think on a reported basis, we would see growth in kind of a low single-digit type range, which — and that’s on a pro forma basis. So I think what you’ll see is, is second half average around, if not a little lower than what we saw in the second year with underlying core growth in that mid-single-digit range.
John Adent: Yes. And like we talked about, the markets are a little bit tougher than last year, and we’re seeing some softening. But some of the stuff that I really like about being in these markets are a couple of things that just recently happened, one, was that allergen is now — or sesame is now listed as a major food allergen. And so that’s the first time the U.S. has added a major allergen since 2004, we have U.S. 14. So we continue to see — and we saw a nice bump in our sesame allergen kits because of this because now you have to test. I think long term, you’re going to continue to see that grow. Secondarily, we talked about in my release about pathogens. Last year, over 1.3 million Americans had Salmonella, and I was one of them.
And trust me, you do not want it. It is a great way to lose weight, but you do not want it. And what happened in August was the USDA declared that Salmonella is going to be an adulterant in frozen breaded chicken products. But that’s just the start, right? Because we’re going to start with frozen bread of chicken, then we’re going to move to other chicken products. And again, that’s going to continue to drive testing for Neogen. So, this is why we’re in such relevant markets. And even though the overall general economy is softening, things like this happen to help us continue to drive growth throughout the year.
David Westenberg: Got it. Okay. And going on a continuation of understanding the growth rate, I mean, I think you put core revenue as being 7%, and correct me if I’m wrong, on core. So that’s without 3M. And then Food Safety did do 8.4%. Does that imply the legacy Neogen food safety business was about 5% to 6%? Is my math here all right?
John Adent: I think we — go ahead, Steve.
Steve Quinlan: Yes, Dave, I think maybe you had to add a little backwards. Animal was at 7% core. I believe it was 8.5% may be reported. And then Food is closer to 6 core so that — those are kind of the numbers for the quarter.
David Westenberg: Perfect. Okay. No, no. Okay. And then just a little bit of continuation of Brandon’s question on the gross margin. I think over the longer term, I think our out-year guidance has a little bit more in the mid approaching the mid-50s. So this was a little bit of down versus where were expectations were. There was a mix thing. So I think animal safety, generally speaking, had has a lower gross margin than food safety. So I mean, some of this could be mixed. Is there anything else you want to call it other than just that mix?
John Adent: Well, and I think not only mix between those units, but also as is now the food safety 70% of the business, you’ve got to be aware of the mix within the food safety business. And again, we’re not through the headwinds on the Petrifilm, but we are — we’ve got — still have back orders to where — that’s one of our highest profitability lines, and we have more demand than what we can sell today. So when we get that fixed, that’s really going to help. And that’s the one thing that I hope you guys have taken away, too, is like even just after the first quarter, we bought a great business. I mean it is a great margin profile. It’s a highly profitable business. The new Neogen, the one Neogen is now much more profitable than we were pre-acquisition.
David Westenberg: Got it. No, that’s super helpful. So as we’ll get the benefits as indicator — the indicators can actually come to market. Got it. No, that’s incredibly helpful. I’ll just ask one more, and I guess I’ll get the rest offline a little bit later. Can you talk about the H2 EBITDA assumption? It kind of — it sounds like maybe you got a little bit of a pull-forward benefit in terms of timing I mean, is that kind of the case is that you did have some cost avoidance in this quarter that will come into H2?
