Wednesday, August 02, 2017

Two years after '' rock bottom '', Bombril back to blue and plan investments

Almost two years after it reaches the bottom, with lack of products on the shelves of supermarkets and high indebtedness, Bombril begins to take its first signs of reaction. After closing last year at the blue, after four straight years of losses, the expectation is that the company famous for steel sponge start also generate cash from November – so far, all the money that comes into the company is intended only to your heavy debt abatement.
In front of the company since December 2015, Luiz Gustavo Silva Executive said the State had to make a deep restructuring process which included heavy cost cuts, reduction and sale of brands considered strategic to the business, little resignation of 400 people (now has 2,400 employees), in addition to review of the distribution of their products, which came to be made by a company of its own.
After three months in steel wool as an Executive of the RK Partners, specializing in restructuring of companies in financial difficulties, Silva was hired in March last year by the company''s drivers and now, passed the most critical phase of Bombril, which came to be at risk of entering with filing for reorganization in 2015, making plans for the Group media in 2018 to reappear.
In recent months, the company wiped your portfolio and sold marks, how to row, Lysoform R $47,600,000, to fatten up your box. Silva said that the Group wants to focus on categories with potential for growth, as the traditional steel sponge, leading brand, and other relevant presence labels, as detergent Limpol, the disinfectant Pine Bril and softener Mon Bijou.
In the first quarter this year, the company recorded profit of R $34,700,000, reversing loss of R $23,800,000 of the same period in 2016. The debt was some R $520 million.
Debts. At the height of the crisis, in 2015, the Group''s debt reached nearly R $900 million. Of this total, good portion, of approximately $570 million, R tax debts that has already been renegotiated. The obligations to suppliers, R, $140 million were splitted in 36 times. There was also reviewing financial costs with the banks.
The company, which for years had as its poster boy the actor Carlos Moreno and invested million reais a year in media, adopted more timid marketing strategies. According to Mark Krause, marketing director of the company, the focus this year will be on campaigns at points of sale. The Agency Africa won the competition to come up with more creative marketing strategies in lean periods, with a focus on digital media, according to the Executive. In 2018, if the company''s recovery plans are successful, the steel wool may return to television, but in more modest terms.
Consumer. According to Marcos Gouvea de Souza, a partner at consultancy GS & MD, the consumer has no sense of crisis in which the steel wool comes through. The loss of the company''s participation in certain categories is not linked to financial turbulence and reorganizations for which passed, but the price factor. "Brand loyalty is less in periods of recession. The consumer is not concerned with a corporate fight or difficulty of a company, but with the Pocket. "
With three factories in the country, want to achieve financial balance Bombril. Silva said the chance of the company going into bankruptcy is zero, past the more turbulent period, at the end of 2015. "During the most acute crisis of the company, the consumer went to the competitive product because I couldn''t find the products of the steel wool on the shelves," said.
This phase, according to the company''s marketing director, spent. He said the company has managed to increase your market share in recent months.
Company has changed ownership
The company, founded in 1948 and known especially for your steel sponge, has gone through severe financial problems in the past, changed owner, faced fights between partners and to a long process of reorganization, which extended from 2003 to 2006. The company was sold in the years 1990 to the Italian industrialist Sergio Cragnotti. In early 2000, the son of the founder of the company, Ronaldo Sa Ferreira, returned to command. In new financial difficulty, the company hired the RK Partners in 2015 to restructure the group.
Estadão – 2/08/2017
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