Eddie Ingle: The margin profile actually is quite healthy. We’re very pleased with that. It’s above our normal margin profile from a gross profit point of view. What’s nice about it also is the fact that we’re not just selling into 1 market, we’re selling into the nonwoven space, into the film space and into the specialty packaging space as it relates to some cosmetic end users. So it’s very diverse. And the story really is all about sustainability and the innovation that we can bring. And some of these end users are also very interested in our new trust verification system and the fact that we have a tracer in there that can verify it is recycled materials. So it really plays out well to the REPREVE story that we’ve been working on, on the fiber side.
That seems to be translating nicely over to the packaging side. And one other thing, we design our resins to perform at a very high level in our yarn business. I tell people, we make yarn at 3,000 meters a minute. And these product attributes that we have are surprising. It’s because they’re playing the clarity of our resin, the purity of it is playing well into these new markets.
Anthony Lebiedzinski : Got it. Okay. And then in terms of the pricing, it was down in the Americas and Brazil, but up in Asia. I think part of that is the Chip and Flake increases. But how do we — how do you see that going forward here as far as the dynamics near term as far as pricing. Would like to get your thoughts on that.
Eddie Ingle: Yes. In Brazil, really driven by the very depressed pricing from China of competitive products, the imports that are coming in. We are seeing, just in the last few weeks, some opportunities to raise prices down there, but it’s still early days yet. We do expect, once China really returns back to normal production levels as the supply opens up. They’re very reactive to pricing, and that will result in higher prices in Brazil. In the Americas, it’s mostly driven by the higher sales of packaging that we talked about or pre-COVID resin in the packaging space. So the yarn business, the prices are more — are pretty much stable.
Anthony Lebiedzinski : Okay. That’s good to hear. And then in terms of the competitive environment in Brazil, have you seen any changes there lately?
Eddie Ingle: Yes. We did have 1 competitor actually move away from the market. And that’s — we’re looking for — they still have inventory in the — out there, so are selling, but do expect that opportunity to bring us some increased volumes as we move through the end of this calendar year. And again, I think we’ll be able to talk more about that and the impact on that in our October call.
Anthony Lebiedzinski : Got it. Okay. That’s good to hear. And then longer term, how should we think about the pass back to profitability? So I mean if I look back to fiscal ’16 and ’17, revenue in those years was a little bit higher than what you just reported for this year. But certainly, the operating margins back then were closer to 7%. So how do we — how do you guys think about returning to being EBITDA profitable or just EPS profitable? I know you guys talked about some headcount reduction as well that you’ve done. But just maybe kind of if you could walk us through like how do you see this playing out.
