Personal Care Brand Sees 6.5M EBITDA Improvement And 30% YoY Growth in 20232024-02-06T17:24:13-06:00

Personal Care Brand Sees $6.5M EBITDA Improvement & 30% YoY Growth in 2023

Personal Care Brand Sees $6.5M EBITDA Improvement & 30% YoY Growth in 2023

At A Glance

$6.5 Million

EBITDA Improvement

+30% YoY Growth

Product Lines and Revenue

$2.7 Million

Cash Improvement

Doubled Capacity

Over 1 Million Units per Month

The Challenge

A consumer products company (“The Company”) was introduced to Forsyth Advisors through its Private Equity owner to partner together and expand capacity to handle further expansion into big box-retail.

In kickoff discussions with The Company’s management team, Forsyth Advisors learned that The Company’s contract manufacturer could not support growth initiatives due to limited capacity and capabilities.

Approach and execution

Forsyth Advisors subsequently identified 100 manufacturers located in the United States, Mexico, and Canada to develop a shortlist of manufacturers that met The Company’s unique requirements. The Company’s selected manufacturer provided increased product quality and consistency, significant lead time reductions, and freight cost reductions resulting from a more centralized location – synergizing with their current operations. During this initial phase of work, Forsyth Advisors also discovered an opportunity to provide multiple ancillary benefits to supply chain operations by securing The Company’s formula ownership and improving current product formulations. After further analysis of The Company’s challenges, Forsyth Advisors verified that we could improve their material costs by negotiating make & fill costs with CMOs and implementing a rebate structure that benefited both The Company and their suppliers. Forsyth Advisors then tracked and managed product testing of all new formulas, SKUs to ensure consistency and quality, and enabled The Company to research & develop (R&D) new products while industrializing all products.

Forsyth Advisors worked closely with the CEO to meet their distribution strategy and growth initiatives by doubling manufacturing capacity (1M+ units per month) and supplier capabilities. We were also able to provide cost savings on packaging while developing a strategy to reach future state Environmental, Social, and Governance (ESG) initiatives to use 100% PCR bottles by 2030. With Forsyth Advisors’ help, The Company experienced 30% year-over-year growth in the first year, achieved their transition to big-box retail, and exceeded distribution and operation goals. Forsyth Advisors delivered considerable, future-defining value that went beyond simply improving The Company’s costs.

Results

Combined Quality of Earnings (QofE) defensible EBITDA improvements amounted to $6.5M [or 20%] while freeing up an additional $2.7M of cash improvement. The Company utilized the savings and cash improvement for brand campaigns that resulted in market share growth.

SECTOR

Consumer Products
Personal Care Products

RELATED PRACTICE

Cost Reductions
Strategic Growth Initiatives
Revenue Growth
Organizational Improvement
Risk Mitigation

$6.5 Million

EBITDA Improvement

+30% YoY Growth

Product Lines and Revenue

$2.7 Million

Cash Improvement

Doubled Capacity

Over 1 Million Units per Month

“Forsyth Advisors was our key partner in developing our comprehensive supply chain strategy, leading the search and evaluation process, and project managing the tactical levels of the scale up to make us successful . . . and delivered against our cost, quality, and volume expectations in record time.”

MICHEAL M.
CEO

Download The Full Case Study

Our case study examines how a personal care brand partnered with Forsyth Advisors to expand capacity and reduce costs of raw materials, packaging, and distribution.

PERSONAL CARE BRAND SEES $6.5M EBITDA IMPROVEMENT AND +30% YoY GROWTH IN 2023

Our Leadership

James Pratt

Managing Partner

Nathan Overboe

Managing Partner

Matt Gieseking

Partner, Business Development

Sonja Hordvik

Chief Operating Officer

Oscar Owens

Vice President, Diligence

First Phase Cost Savings

100 Days Of Works + $100,000 Investment = $1,000,000 Execution-Ready Savings

Take the next step toward 10x ROI by scheduling a short consultation today. Our results are proven and worth a 15 minute conversation with one of our strategic sourcing advisors.

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