You can see that our growth here is really very, very, very competitive, particularly at the moment in which many companies, particularly in the beauty space, are shifting back focus from China into the U.S. We thought that was important to focus in solidifying the position there. Regarding Hair Care, good performance, positive volume, Latin America and South Asia with double-digit growth. We have a bit of a difficult time in North Asia despite the fact that Clear, in particular, is doing very, very well there and is reducing the gap with the anti-dandruff leader in the market. But overall, the performance of Hair Care has improved significantly in the last couple of years, and we believe that this strength will continue going forward.
Unidentified Company Representative: And our final question comes from Sarah at Morgan Stanley. Sarah, are you there? I think we may have lost you there, Sarah, I’m afraid. So with that, we have…
Sarah Simon: Can you hear me now?
Unidentified Company Representative: Oh, yes, you’re back.
Sarah Simon: Okay. Sorry, didn’t know what happened there. It was 2 questions. One was on restructuring. You’ve obviously had fairly significant restructuring costs for quite some time. Can you just take us through how much of those are going to be cash in ’24 and how long you would anticipate continuing to charge restructuring? And then second one was just on the gross margin question. In terms of price coverage of NMI since things started to — or since we started to see significant [indiscernible], where do you think you’ve got to in terms of price coverage, maybe as a percentage or something like that?
Hein Schumacher: Thanks, Sarah. I mean, on restructuring, we have — we’re guiding towards roughly 1% of turnover on restructuring for 2024. Fernando and I, we’re seeing some real opportunity for productivity improvement. So I already talked a bit about Ice Cream. We’re looking at some other pockets that we will come back to you on. We’re doing it, as mentioned in the video, surgically and I think that’s right. But at this point, we would guide towards that sort of 1%. On gross margin, if you look back in the last couple of years, since the inflation started, I would say we’re at roughly 80% coverage, give or take, and with — obviously, with some momentum behind gross margin and the productivity plan there. And I already mentioned earlier in the call that we’re leaning in a bit more on gross margin in terms of faster recovery to prepandemic levels than earlier communicated.
Fernando Fernandez: Yes. Price coverage now for the first time in 4 years is above 100%.
Hein Schumacher: Thank you, Fernando. Look…
Sarah Simon: You’re at over 100%?
Fernando Fernandez: Now. For the first time in 4 years, our price coverage has gone beyond 100%.
Hein Schumacher: Thanks, everyone, for joining the call. That was, indeed, the last question. So as you have all heard, we have reorientated the company now behind the Growth Action Plan and this is resulting in some important shifts. First of all, a laser focus on growing volumes and gross margin expansion. I mean, 2 themes that we have discussed during this call. A tight grip on operations and — resulting in 2023 particularly strong working capital performance and thereby strong cash generation, and we’re pleased with that; an increased investment behind our growth, and of course, behind our Power Brands. We stepped up investment in 2023 and we aim to do more in 2024, but obviously based on the strong plans. The right level of urgency that we have now in the organization to address that competitiveness and underperformance in the pockets where that’s valid.
We also continue to look at the portfolio. We’ve done some important changes in 2023, and we will continue to look at the right portfolio going forward. So all in all, clearly, we are all focused on value creation and increasing shareholder returns. It’s super important that we do that. We’re very clear, and as Fernando said, we know what to do. We look forward to update you on the progress through the course of the year. And for now, have a very, very good day. Thank you.
