Facts & experience

Successfully restructured. EBIT turned from –2 to +4 million EUR.

Costs, prices, product mix and financing reorganised so that a loss-making operation became a viable, growth-capable business.

+6Mln+ 6 Mln

EBIT improvements

20%− 20 %

Fixed costs reduced

+12%+ 12 %

Gross margin including recycling and product development

+80%+ 80 %

Liability structure improved

Initial Status Quo

From loss-maker to profitable business model

The situation encountered: shrinking margins, excessive fixed costs, fundamental problems and under pressure. EBIT was significantly negative, cash flow was strained. Things definitively could not continue this way. The goal was to restructure the business model so that earnings, liquidity and financing structure aligned again.

Implementation

The most important steps at a glance

Lessons Learned

Our main conclusions from the process

Four points that make restructuring successful and sustainable

Reach new EBIT level

Numbers that have consequences

Metrics only work when decisions and accountabilities are clearly linked to them.

Enforce cash flow and financing

Sufficient ammunition for the process

Earnings turnaround without stable liquidity and sustainable financing structure remains fragile.

Address product mix and prices

Turnover alone isn't enough

Those who don't work on margins and mix only restructure costs – not the business model.

Create clarity

Clarify EBIT mechanics

Without clear view of contribution margin per product, customer and plant, every restructuring remains chance.

If your company must become more profitable but traditional cost-cutting programmes aren't enough, successful restructuring is unavoidable.

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