Matt Smith : And just a follow-up on the personal care discussion. Can you talk about the cash costs associated on a go-forward basis? And then the 11-point increase in margin that you’re targeting from the rationalization, does that timing lineup with the SKU rationalization that Wendy discussed, fourth quarter, first quarter and second quarter, upcoming? Or is there a longer tail to realize that margin benefit?
Lee Boyce: No. I mean the margin benefit is going through into the second half of 2025. So I think those pieces align. And then just kind of on the cash cost overall — I guess I would just tie back to the overall restructuring costs, where we talked about the 90% to 150% of that being cash and noncash. I mean nothing’s fundamentally changed on that overall profile. And that’s what we’ve seen kind of year-to-date. If you think about it, so 90 to 100, we’ve had $50 million year-to-date, half of it being cash, noncash. So everything falls within that kind of overall envelope.
Operator: Our next question comes from Alexia Howard with Bernstein.
Alexia Howard : So I just have one question around the marketing spending. I remember when you laid out Hain Reimagined, there was a relatively modest increase in the plan for increasing marketing spending company-wide. And the idea was to reallocate and really focus on the areas where you could get a decent return on that. Are you rethinking that given the disappointments on the organic sales growth side? Do you need to up the marketing spending? Where are you in terms of where you think the appropriate long-term level might be?
Wendy Davidson: Yes, I appreciate the question. And you’re right. We said early on that when we turned back on marketing as a company, we wanted to make sure we had an always on pressure to support our brands, but that we wanted to get more efficient before we simply spent more. And you’ll see that reflected in the numbers. On a consolidated basis, we’ll be up slightly this year versus last year, but we’re also more weighted to the back half of this year than we were to the front half because we wanted to make sure we were supporting some of the big launches and some of the key seasons like sub season in the U.K., like the Celestial Seasonings tea season in the winter and then supporting the Flavor Burst launch with appropriate support.
We’ve seen sequential improvement in our working to nonworking. So the shift is working. We’re also gaining and growing brand awareness and growing household penetration across our core brands. And as Chad mentioned, we’re driving incremental reach with some of our distribution gains, all of those things focused on share. The issues we’re seeing in the top line are really very acutely tied to a couple of things. It’s tied to personal care and it’s tied to baby formula. Spending more money against those would have both been bad spend because I would spend against baby formula and not had available supply, I would have spent against personal care subcategories that we really shouldn’t be in. So I’m not concerned with where the team chose to spend the dollars because I think where we’ve spent it when we evaluate marketing effectiveness, we are seeing promotional lifts.
We are seeing household penetration gains. We are seeing the share gains, and we are seeing a growing awareness where we’ve invested our dollars. Our goal is to get those — that 15% of the business that needs to be stabilized to stabilize so that where we’re investing for growth, we’re seeing that deliver all the way through the consolidated numbers and not just in the 85% of the business.
Operator: And I will turn the call back to Wendy for closing remarks.
Wendy Davidson: As we said earlier, we’re very pleased with the progress that the team has made around focus and fuel initiatives because it’s allowed us to expand our margins, it’s allowed us to deliver strong free cash flow, and importantly, to reduce our debt, which we know are all things that are very important to the investment community. And I feel very proud of the work that the team has done in our end-to-end supply chain and the overall business. We’re investing, I think, appropriately around brand building and around building our capabilities, and we look forward to more than 85% of our business pivoting to growth as we go forward. But again, I want to thank everybody for your time this morning and for your belief and confidence in Hain as we reimagine our future.
Operator: And this does conclude today’s program. Thank you for your participation. You may disconnect at any time.
