We will leave that for future earnings calls. Of course, we’re working on increasing ACV, but at the moment, you’ll see our growth is very mechanical and our teams are executing more TDPs and in existing customers, and new doors within existing customers.
Kaumil Gajrawala: Then on how velocity should trend as you get those distribution gains?
Daniel Ordonez: Yes, of course. That’s what I noted – you’re absolutely right, we will keep on track on that, as we are.
Kaumil Gajrawala: Got it, thank you.
Operator: Our next question is from Michael Lavery with Piper Sandler. Please proceed.
Michael Lavery: Thank you, good morning. Can you just help us understand, when you talk about the production mix and the potential for Peterborough or Asia 3 to even still be maybe converted to hybrid, what’s changed that that wouldn’t have an impact on overall margins versus where you had initially characterized end-to-end production as pretty significantly more attractive margins?
Jean-Christophe Flatin: Hi Michael, it’s Jean-Christophe. First of all, I think the direction is very consistent with what we announced in the last quarter, but we want to focus on the foreseeable future on more hybrid solutions because they allow us to focus our resources and be simpler. Now when it comes to these two factories and all the options that we are exploring, we are committed to getting the business to those margin targets over time, the ones we shared in the deck this morning. We need to keep in mind that the evolution of the production mix is just one lever that impacts the margins. We have many other levers in our hands – pricing, product mix, channel mix, customer mix, promotional levels, etc., so ultimately we will make the right decisions for the business while delivering on our commitment to our shareholders.
Michael Lavery: Okay, that’s helpful. Can you just touch a little bit on–you’ve got the capital raise in hand, which is significantly more than you’ve expressed that you need, so it seems like a pretty clear positive there. But as far as–you touched on your expectations for 2024, EBITDA positive on the full year, sorry if I might have missed this, but can you give a sense of when you think you become self sustaining from a cash flow perspective, and recognizing that this amount of capital sets you up quite well, but as far as how we think about the modeling and maybe your expectations, at least, when does that cash flow positive run rate start to kick in?
Christian Hanke: Hi Mike, it’s Christian here. Essentially this capital of $425 million that we have now brought in will be self sufficient until we are generating positive free cash flow. It will bridge us until we get to that point. We expect to be, as we have said in our prepared remarks, to be adjusted positive EBITDA in 2024, operating cash flow should then also be moving in the right direction, and then we are managing our capex accordingly based on the plans that we have in terms of the facilities that are coming online.
Michael Lavery: And so is free cash flow position like a second half 2024–when is your expectation for that?
Christian Hanke: It’s beyond that. If you think about the capex investments that we’re planning for next year, it’s between $180 million and $200 million. We are improving operating cash flow in ’24, so it’s more moving into ’25.
Michael Lavery: Okay, thanks so much.
Operator: This will conclude our–actually, we do have one more question from John Anderson from William Blair. Please proceed.
John Anderson: Thanks for taking my questions. Good morning. I was wondering if you could just, housekeeping-wise, talk about where you finished 2022 from a finished goods production standpoint in liters, capacity, and then where you’d expect to finish 2023 given the work you’re doing on the supply chain and with Ya YA.
