Omar Asali: Hey Greg, maybe I can start with just some general comments, then I’ll have Bill give in his input. But I would say January and February benefit a little bit obviously from the very weak December in particular. So we’re not necessarily just assuming that that is changing the world and all of a sudden the demand story is going to be different for the rest of the year. I would say from the top line standpoint, macro standpoint, as Bill outlined with the growth rates, we are not assuming anything robust out there. We are saying destocking, we have very high confidence in and that’s behind us, and that will give us some relief. That gives us a lot of confidence, in the numbers that we’re outlining for this year. And the second thing that gives us a lot of confidence, that is not 100% reflected, but a big part of it is our paper pricing and what’s happening in the energy market in Europe now, we’re not assuming that energy is just going to be stable, but what we’re seeing in kraft paper, and we’re negotiating these things, so we have visibility for the upcoming few months and quarters.
We are seeing quite a bit of help on the COGS side for us. I’ve said in the past that we probably gave up in 2022 something along a thousand basis points in our gross margin, and that we’re hoping to recover half of that in 2023. And as the year progresses, we expect to continue to recover more from the input cost side. And we have quite a bit of confidence based on what we’re seeing that will be achievable. So the two things that, that you see that give us confidence in the guidance are destocking and then kraft paper cost. We are not making assumptions that e-commerce is going to reset to fantastic levels this year. We’re certainly not making assumptions about the economy rip roaring or any of that stuff. If the economy improves, that will be added to our plan and our guidance.
But I think what we’ve took into consideration is stuff that we have very high confidence that we can achieve. Bill, I don’t know if you want to add in a few comments.
William Drew: Sure. I think just on — a little color on the cadence, right, I think we are expecting probably the first half of the year to be more subdued relative to the second half just given the environment that we’re in. And also just as you think about last year and how 2022 unfolded, the volumes in the second half of 2022, we’re meaningfully lower than in the first half, right? And given the seasonality, that’s really unusual. So usually you kind of have the opposite effect where there’s a step up and a lot of that was driven by Europe and then towards the end of the year, North America as well. So I think, if you think about 2023, I would say the first half probably the lower from a top line perspective as well as margin, right.
We expect the margin to improve kind of steadily throughout the year as we get more of the benefits from the paper pricing and if you think about just paper pricing last year, right, it continued to increase throughout the year, right? So Q1 of last year was the lowest paper pricing that we had, right, with it peaking in Q4. So as we lap that, particularly in the second half of the year, that’s when we get more of a margin benefit. But we do expect Q1 again to be better margin than what we saw certainly in Q4.
Greg Palm: Okay. That’s helpful. And Omar specifically you mentioned kraft, but what have you seen specifically in terms of kraft paper pricing by region versus where it was end of year?
