Protein & Grain Producer
Roles
Financial Advisor
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John R. Gordon Jr.
Senior Managing Director | Partner, Partners
John Gordon has more than 25 years of diverse business experience demonstrating an ability to bring deep financial and analytic skills along with a passion for operational improvement to difficult situations.
Sugi Hadiwijaya
Managing Director | Partner, Partners
Sugi Hadiwijaya has more than 15 years of combined experience in financial services and turnaround management, assisting companies with tasks such as cash management, securing of financing, business plan assessment, M&A activities, and financial modeling in multiple industries.
Mike Juniper
Managing Director | Partner, Partners
Mike Juniper has 20 years of experience in financial and operational analysis and improvement, turnaround and restructuring consulting, and interim management. He has served as an advisor to numerous companies through Chapter 11 proceedings.
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Identified business and profit improvements
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Worked with executive team to implement process improvements
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CR3 transitioned implementation work to company
The company is one of the largest integrated protein and grain producers in North America with operations in 12 locations. The company was struggling with financial underperformance relative to its peers due to lower protein prices and higher operating costs. A CR3 Partners team was hired to assess and implement cost reduction initiatives, mine the company’s data to identify revenue and gross margin improvement opportunities and refocus management on business investment with a higher probability of payback and return of investment. CR3 identified improvements valued at $145MM to $245MM of increased annual profit and worked with executive team to implement process improvements that increased profitability by $40MM per year.
The Situation
- Company was historically profitable, but performed below average relative to its industry peers for more than a decade
- EBITDA approached breakeven relative to debt service and capital requirements due to lower market prices for protein and higher operating costs than its peers
- Company made large marketing investments in its brand to differentiate itself through initiatives such as animal welfare and sustainability
- Company sought advisors to assess and assist in implementation of operational improvements, with an internal goal of increasing profitability by $75MM annually
The Work
- Worked with executive management team to assess improvement initiatives in revenue and reductions in costs and expenses
- Implemented CR3’s Projects in Process gating system to prioritize, evaluate resources, reduce cycle time, and improve outcomes of over 600 active projects company was undertaking prior to CR3’s assessment
- Provided process and project management to complete a reduction in force and other expense reductions in a four-week period versus company’s previous planned two-year implementation
- Mined and analyzed internal big data to make recommendations for increasing revenue and gross margin
- Provided customer, product, and market profitability insights along with detailed process improvement actions and project management support
- Recommended opportunities for improving direct-to-customer shipments, warehousing strategies, and logistics
- Provided analysis and recommendations to refocus management on business investment with a higher probability of payback and return of investment
The Results
- Operational assessment resulted in identifying business improvements valued at $145MM to $245MM of increased profits per year
- Worked with executive team to implement process improvements that increased profitability by $40MM per year
- Projects valued at an additional $14MM of profitability improvement were in process as CR3 transitioned further improvement implementation work to company
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