Chris Peterson: Yes, sure. Yes. So let me take them each in turn. So the Writing business – we feel the Writing business we are set up for market share gains this year, driven by the strong innovation I went through in the prepared remarks with Sharpie Creative Markers and PaperMate, InkJoy gel bright pens. We also are doing a lot of base marketing work. So, for example, we’ve done a Sharpie rookie of the year, which is sort of timely. Last night was the NFL draft. We had two of our spokespeople, Michael Penix Jr. and Rome Odunze were drafted number eight and nine in the first round. They both are going to use Sharpies to sign their contracts and we’re activating marketing against that, which is fantastic. And so we feel like as we head into the back to school season, we’re well positioned from a sell in for the back to school season on writing to gain market share.
We have a lot of activity going on, not just from a marketing, but from a go-to-market and a new distribution standpoint in that business. So I expect that we’re – that we will grow that business this year even if the market is likely to be closer to flat. On the Baby business, I also think that business is positioned for growth this year. We have a stronger innovation funnel planned for the back half of this year. We have a lot of momentum from new distribution and we are lapping a challenging base period from last year with Bye Bye Baby having gone out of business. And then on the commercial business, that business is also going sort of from strength to strength. We’ve got some good innovation on that business. It’s hard to say on any given quarter will that be growing or slightly declining, but we feel like that business also is positioned well for consistent growth over time.
So that’s sort of a quick run through of the three business units.
Bill Chappell: That’s helpful. And it’s obviously getting one more. But I guess too, just maybe, would you say all three of those categories are – the categories are healthy again. And then on the cash flow, I understand that you’re just kind of maintaining guidance across the board, but is it safe to say that there’s some upside potential to your cash flow forecast for this year? Or had you always expected to be, I guess, cash flow positive or this cash flow positive in the first quarter?
Chris Peterson: Yes. So cash flow came in significantly better than we expected in the first quarter. We were planning for a cash conversion cycle improvement, but we did better than we expected and it was largely working capital driven. We do think that there is potential for upside to our cash forecast versus the guidance that we put out. But given that it’s early in the year, we didn’t want to change the guidance at this point, we think we’re being prudent. But we certainly are driving a stretch plan that is higher than what our guidance is. We want to get further in the year before we look to adjust that guidance. And then on the categories, to your point, I think writing and commercial categories are relatively flat at this point. Baby is still a bit of a headwind from a consumer off take standpoint, but we are doing better, I think, from a selling perspective.
Bill Chappell: Great. Thanks so much.
Operator: Thank you. Our next question comes from Andrea Teixeira with JPMorgan. You may proceed.
Andrea Teixeira: Good morning and thank you. Chris, I think you spoke a little bit of the outdoor, but if you can also talk about consumption trends within your low single digit category decline outlook, right, and now talking about more the negative impact that you saw in kitchen and home fragrance, which offset the commercial solution side and the positive performance there. When should you think this business could potentially flat? Either by having the easier comps, as you called out, for example, for baby, now you’ve been in a very long journey of SKU rationalization or you’d think that it’s a category that given the COVID bump, you’re still going to see tough comps as we navigate through 2024. And it’s that is the main assumption that you’re seeing within or if you can explain to us how much of that overall low single digit category growth – I’m sorry, category decline, how much of decline you’re expecting this business to have from a category standpoint?
Thank you.
Chris Peterson: Yeah. So let me try to parse that out. So if you look at our expectation for the year of the categories in total in which we compete to be down low single digit, that is relatively consistent in each of the four quarters this year. So we are expecting the categories to decline. They declined in the first quarter. We expect them decline in Q2 and Q3 and Q4. So we’re not expecting the categories to return to growth in any of the four quarters this year as a starting point. That being said, we are expecting our core sales to improve in the back half of this year versus the front half of this year. And that’s largely as a result of the front end capabilities coming online. I mentioned the first of our eight Tier 1 and Tier 2 initiatives that we’ve launched, which was the writing one in my prepared remarks.
We have a number of the other seven that are launching in the back half across other businesses, and many of those are launching in the kitchen business specifically. So I’m expecting that the kitchen business trend will improve in the back half of this year versus the front half of this year, driven by capability investments and innovation launches that we expect in the back half. I think the home fragrance business, we’ll see, the big quarter there is the holiday period. We’re a little bit away from the holiday period, so I don’t want to guide specifically on that. But we are working on innovation in that business as well. And we’ve got a lot of good things happening on from the new business development team there as we head towards later in the year.
Andrea Teixeira: And Chris, if I can just kick back on what you just said, is there any, I think way or perhaps getting some of these brands, you called out, of course, exiting some of these businesses from a basically organization standpoint, just not investing as much. But is there any way you can perhaps monetize some of these brands or that’s wishful thinking at this point. You have to – you’re happy with having those businesses as they are, as you already took out a lot of SKUs and rationalized your commercial campaigns on those.
