Operator: [Operator Instructions]. Our next question comes from David Green of Boldhaven. Please go ahead.
David Green : Just an initial question regarding the guidance which you have alluded to, Paul, anyway. The narrative this year in terms of the headwind from the destock has been very much along the lines of destock running at high single-digits, but the win rates or underlying growth running a similar amount. And so net, you’re kind of in the middle of sort of like flattish growth. I’m just trying to understand as we go through 2024 and the destock fully unwinds, why would we not be seeing a more significant improvement in top-line come through in ’24? In terms of the areas that you identified, how did you sort of make that assessment around which specific plants or production sites to shut down and just tie another one on the same topic? Should we kind of take an even split in terms of the cost savings across Flavors and Colors?
Paul Manning : So, number one, we will periodically review sites, business units. We look at different dimensions of the business and we see what part is running well and has optimized production footprint, for example, or we’re able to achieve good synergies. And so, I think as we looked at the overall portfolio, we came up with the one that we did. It’s quite a bit smaller than anything we’ve done previously. So, I suppose to your question about, how do we think this is going to go and do you think we’ll do well here? I think it’s much smaller. In one instance we’re moving a plant in Europe. We’ve begun the consultation process there. And so that is a plant that’s very similar to one that we successfully consolidated in the past.
That gives me a great deal of confidence. In fact, most of the folks who were involved with that are running this one as well. So, that would probably be the biggest component of the project is a value, is that one plan in Europe that we would consolidate into the Americas? I think the other thing is just — there were lots of lessons learned from the previous restructuring and I was the CEO then and I’m responsible for the screw ups then. And so, I know what all the screw ups are. And so, we’ve made a very concerted effort to plan differently and evaluate those differently. And so, I think, we’ve put more resources towards this project and again, we can anticipate with a great deal of confidence that where the trouble areas would be on such a move beyond that one plant that produces products.
Most of the other activities are really SG&A related, so they don’t specifically involve the production of a product, the movement or the transition of one product from another. That was the most complicated and problematic of our previous restructuring is trying to requalify products in other plants. It’s a decidedly complex and difficult thing. There’s a lot less of that. In fact, I would almost say very little of that associated with this restructuring versus say some of the previous activities that we had. How do we assess the site who makes money, who doesn’t make as much money? It’s pretty much how you’d evaluate any stock or any other investment portfolio. And so, it is in fact a portfolio optimization program. From that sense, these two facilities were the two lowest, probably the two lowest returning facilities in the company.
And so, I think we’ve addressed that. We made an effort, but there is such thing as a sunk cost fallacy and we’re not going to fall for it. In terms of the split, it’s probably about 50 50 Colors, Flavor. I don’t see if you want to get more details on the split in terms of the savings. No, it is about 50 50, maybe a little bit more by the end with Flavors and some of the activities and Flavors will take a little longer. But at the end of the program it’ll be about 50 50 Flavors and Colors.
David Green: Can I ask a question about pricing? I think in the opening remarks you mentioned for 2024, you expect low single-digit pricing. Are you implementing new? It could is the short answer. I’ve got it low-to-mid. As I said, let’s see how — your math is correct. I mean destocking did have a negative high single-digit impact from a revenue standpoint. New wins more than eclipsed that. Sure, that could definitely happen. But then again, if I’m wrong, I’m in big trouble. Let’s start with low-to-mid and let’s see how things go from there.
Paul Manning: Yes. I guess just in terms of understanding Color specifically in the destock there, and then the sort of trajectory as we go into sort of Q1 and the rest of the year, has that been focused on any specific areas still? Is that still mainly cosmetics, where there’s a destock that is needing to come through? And then I guess thinking more about what kind of top-line you can deliver in Colors, should we expect to sort of return to sort of positive organic growth within Colors within the first half?
