Johan Kroner: It just wasn’t there, Ann. We fully agree with you. Airton just pointed out on one of the other questions that we prefer to have a little bit more because we certainly like to be able to offer tobacco to customers, and we have very little at the moment. And so, we’re trying to get the crops up where we can and it looks all positive, certainly for the 2023 crop. But like I said, some of them are not even in the ground yet, but we’re certainly working on that. If the weather cooperates and all that, then we will certainly get some additional volume that we will — because again, demand is strong at the moment.
Ann Gurkin: Okay. And then CapEx plans for fiscal ’24? Do you have any range for that?
Johan Kroner: No. We’re giving the — for the next 12 months, we’re between $70 million and $80 million and again, that’s because we’re looking at to make some significant investments in the ingredients platform to enhance the capabilities that we have.
Ann Gurkin: Okay. And then the synergy number for the ingredients platform, is that $20 million, if I remember that correctly.
Johan Kroner: No. We have not put out a synergy number. We’re talking about operational synergies there where we’re going across the platform, hiring some R&D people and some sales folks, which, again, that’s where you have the addition to some of the SG&A cost. But we need to do that to be able to do all these things that we have in mind with the platform.
Ann Gurkin: Okay. So you haven’t put out a target number?
Johan Kroner: No, we have not.
Ann Gurkin: Okay, great. And then the last thing is I’m just bracing for a volatile year in the tobacco landscape for your customers with potential standards being set for reducing nicotine and maybe menthol ban later in the year in California. California’s well-banning sale of menthol, smokable products went into effect beginning of ’23. I guess, how are you working with customers, how you position Universal? And what is the transition to a heat-not-burn or smoke-free world and what could be a volatile combustible environment. I just like an update kind of on your thoughts here on assets from time to time and I’m just curious.
Johan Kroner: Well, Airton you addressed the outlook on combustibles earlier, but just remind, so Ann has not to relisten.
Airton Hentschke: Yes, we remain positive about the combustible markets overall. And of course, as stated in previous quarters that we operate also in the heat-not-burn market with our sheet operations there in Europe and our AmeriNic, the liquid nicotine still continues to developing, but it’s not material for us today. But we do see opportunities for Universal within all these segments. What is also very strong there is on the cigar — the cigar business. And we do see increased demand for wrappers and binders for that segment of the market, which we are also working hard to increase production there. So — but we remain positive about this market.
Johan Kroner: And in addition, just keep in mind, right, the U.S. is — from a cigarette consumption standpoint, it’s less than 5% worldwide edge China. So very important customer certainly here in the U.S. for us, but just keep that in mind when they are starting to talk about this and still what’s going to happen with regard to legal, lawsuits type of things, we just don’t have insight into that.
Operator: There are currently no further questions registered. There are no additional questions waiting at this time. I do apologize.
Candace Formacek: That’s okay. Sorry, I didn’t mean to jump in on you. Just was going to say, thanks to the folks listening in, and we appreciate your time as usual. We look forward to talking to you in the quarter. Bye-bye.
Operator: That concludes the Universal Corporation third quarter fiscal year 2023 earnings call. Thank you for your participation. Have a wonderful rest of your day.
