As I’ve looked at what we’ve done at Wisconsin, it’s a very significant intervention with a different level of protocol, corrective actions, preventative actions, quality assurance application, and environmental monitoring and cleaning and sanitization. What I’d say is, so far so good that site is up. It’s a different level of adherence from the team on the ground there who’ve been through extensive training. And I am confident that that farm is absolutely on the right track. Okay? I need more time. Alright? Because this is a recent restart, but I’m confident and we will continue to learn our way there, working in combination with the FDA who we update monthly on our progress. I certainly think this is our best shot, and it is a different level of GMP and quality assurance to what we were historically on the path towards.
So I’m as confident as I can be at this stage. I just need a bit more evidence.
Chris Schott: Okay. I appreciate the color there. And then just in terms of the competitive landscape here, just how do you think about share loss? And once you’ve completed these efforts, kind of the willingness of your customer base to kind of reengage with Perrigo?
Patrick Lockwood-Taylor: Yes. I mean, we’re dealing in the most sensitive of categories. Alright? This we have a moral and business obligation. Obviously, this is safe and effective product. We’re talking about infant formulas. Everybody shares that. Everybody wants that. And finished product testing alone, okay, cannot be sufficient to confirm product safety. There has to be a final indication of a quality controlled manufacturing environment. With this investment, there is no doubt that that moves us to that. It’s what all parties want. And we are working with our retailers to explain what we’re doing, try to minimize that disruption and retain our partnerships obviously with them. This is not a standard just at Perrigo. This is a standard to any provider internationally or nationally.
I know what we’ve had to do. I think we were operating at normal industry standards. I think what we’re doing is probably ahead of what is being done by many other manufacturers. So I hope at the end of the day, our customers will allow us to do this and will then come back to a high value quality assured manufacturer of infant formula.
Chris Schott: And just one final question for me. Just can you just comment on the broader kind of Perrigo 2025 targets? It seems like the business ex infant nutritional is really on track and we’ve got some good momentum there. And it sounds like directionally you’re hoping that this is something that you can recapture some of these earnings. So I’m just trying to get some perspective on like should we still be thinking about those 2025 targets or is that something we should maybe hold off until the Analyst Day later this year? Thank you.
Eduardo Bezerra: Yes. Thank you for the question. Chris, as you heard from Patrick and I, we really must execute these actions on infant formula and Project Energize. Those are our critical priorities. And in parallel, we are revisiting our portfolio to make sure it’s going to be sustainable in the long term, right. So as we shared before, we’re expecting to have a much more clear view on our growth perspectives in the fall when we expect to do an Investor Day. And so, we expect to share more by that time.
Chris Schott: Appreciate all the color today. Thank you.
Patrick Lockwood-Taylor: Thanks, Chris.
Operator: Your next question comes from the line of Korinne Wolfmeyer from Piper Sandler. Your line is now open.
Korinne Wolfmeyer: Hey, good morning team and thanks for taking the questions. On Opill, can you just discuss how much selling benefit there may be here in Q1 as you’re selling the product into the retailers before it hits the shelves? And then can you just touch a little bit on the kind of like supply chain processes you have in place to ensure minimal disruption of getting product to consumers once it is launched?
Patrick Lockwood-Taylor: Yes. So thank you for the question. So again, Q1, we’re just about to do the first the launch now in the coming weeks, so that’s mid to the end of March. And so, we expect from a margin standpoint, gross margin is going to have a benefit. But remember, the first year there will be a dilutive effect because we’re really investing in the brand and we’re going to see significant investments mainly at the retailer and online in the second quarter. So we’d expect a minimum accretion at the bottom line in Q1, but an improvement in gross profit margin Unfortunately, that is significantly offset by the infant formula impact that we just talked about. On the supply side, second part of the question, actually very good.
We’ve ramped up extremely well. We’ve shipped. The product is here, waiting to be distributed. All batches for year one consumption have been produced, which is good. And we have buffer for upside as well. This is a very well tested supply chain.
Korinne Wolfmeyer: Very helpful. Thank you. And then can you touch on some of the SKU rationalization efforts you’re undergoing? Is that mainly in the past right now? Or is that something you’re going to continue to do going forward, both this year and over the longer term?
