Franco Moro: Yeah. We see a different approach or back – better back to normal practices in terms of transferring product cost and flowing for equity to commit the orders as a general approach, and but in vials, if – and you may recall that COVID was almost all of the vial business. We see also the situation you were referring to. So, some inventories that the customer had to deplete it to use. And so we expect that during next quarters, the situation will relax in this term that is only related to vials, because COVID-19 out of vials were a minor part of the business. So partially is the back to normal practices, generally speaking, and then there is COVID fading, specifically in vials.
David Windley: Thank you. Franco, so you said, I think you were saying in coming quarters, do you have an estimate on how much longer you think it’ll be before customers have kind of returned to normal levels?
Franco Moro: I want to stress that we – I’m referring only to vials and we expect we expect it to be some time in ‘24 back to the current normal situation also in vials. Is too early to say it’s more than that, because obviously, our customer are planning in ‘24, and we will deliver better, more precise information later on.
David Windley: Great, thank you for the answers.
Franco Moro: Thank you.
Operator: The next question is from Derik de Bruin from Bank of America. Please go ahead.
Derik de Bruin: Hi, good morning. Hey just to follow-up on Dave’s question on the gross margin. What’s the – how should we think about progression into 3Q and 4Q?
Marco Dal Lago: Well, David. And that’s is, for the year, we are confirming excluding non-recurring expenses and margin expansion compared to 2022 in both segments, in BDS, in particular, driven by the shifting towards high-value solution, partially offset by the higher depreciation and some inefficiency associated to the ramp up in Latina. In Engineering segment, we expect to expand margin also. If we include the non-recurring expenses, we expect a slight decline, the gross profit margin 2023 compared to 2022.
Derik de Bruin: Got it. Okay, that’s helpful. Can you remind us on your CapEx spending as you sort of as new capacity comes online in ‘24? You know, how should we think about CapEx as a percentage of sale ramping down in ‘24, ‘25?
Marco Dal Lago: Yeah. The moment you know, our expected cash flow will be negative in 2023 driven by CapEx. For in our model today, we expect to have still important level of CapEx in 2024 to go on with Fishers. And in our model, we expect us some time to restart the project in China in 2024. So it will be another important year for CapEx and we expect to be close to breakeven at free cash flow level. For 2025, we expect today, the CapEx should start normalizing and turn to positive free cash flow.
Derik de Bruin: Great, very helpful. And then just one final question. Another company in the primary drug packaging injectable space reported yesterday. And on the call, they kept talking about some potential customer timing issues, particularly in the second half. Are you seeing anything in terms of customers you know delaying projects or timing or anything along those lines? It was just sort of an unusual market comment that sort of kept coming up. Just sort of your thoughts on is there anything unusual going on in the end market right now?
Marco Dal Lago: Well, first of all, Derik, we want to underline the fact that we are well covered by our backlog. Our backlog today is covering more than 90% of our center point of the guidance. I haven’t – we haven’t seen in the next three months or six months any slowdown. But I can also –
