Case
We restructured a low-profitability PPE manufacturer
Context
An industrial group manufacturing Personal Protective Equipment was in a precarious economic situation, marked by significant accumulated losses, compromised cash flow, negative working capital, sharp sales decline, and high debt.
Approach
- Aggressive restructuring plan across commercial, cost, financial, and legal-corporate axes;
- Team renewal, with procurement and commercial team hiring;
- Joint work with new legal advisors for corporate and labor challenges;
- Negotiation management with financial institutions.
Results
- Gross profit increase of 33% vs. prior period — best result in four years;
- Loss reduction of 61% in the first year of plan implementation;
- Gross margin increase of 33% — best result in seven years;
- Raw material cost reduction of 13.14%;
- Financial renegotiation: lower interest rates, extended grace periods, reduced past-due interest, maintained credit limits.