Building Resilience in Manufacturing: How Everwell Ingredients transformed cash flow & profitability.

In an industry shaped by unpredictable costs and shifting consumer demand, financial stability can make or break a business. For Everwell Ingredients, a family-owned food and beverage manufacturer, navigating rising ingredient costs, evolving supermarket landscapes, and seasonal cash flow pressures felt like an uphill battle.

Despite growing revenue from $14.5 million to $24 million, their profitability and cash flow were not keeping pace, creating serious concerns about financial viability. Without a clear financial strategy, the company was at risk of stagnation or worse.

The Challenge: A Fast-Changing Market and Rising Costs

Everwell Ingredients faced mounting pressures from all sides:

• Unstable cash flow. Seasonal revenue fluctuations and delayed payments to suppliers made financial planning unpredictable.

• Profitability issues. Gross margins were too low to sustain long-term growth.

• Financial viability concerns. Their financial institution questioned the business’s ability to meet ongoing obligations, putting essential funding at risk.

• Market shifts. Inflation and supply chain disruptions led to higher ingredient costs, while supermarkets changed their purchasing behaviours, impacting revenue.

Without intervention, these challenges threatened not just cash flow but the future of the business.

The Solution: Strategic Insights for Long-Term Stability

Everwell Ingredients needed both immediate relief and a long-term financial strategy. That’s where ClarityCounts stepped in.

Step 1: Identify key profitability drivers

• Conducted a detailed gross margin analysis by product line and customer.

• Pinpointed low-margin products and clients, redirecting focus to more profitable opportunities.

• Provided granular monthly reporting, offering leadership clear visibility into financial performance.

Step 2: Tactical adjustments for immediate gains

• Recommended pricing adjustments to reflect rising costs while maintaining competitiveness.

• Introduced cost recovery initiatives to reduce overheads and improve cash flow.

• Provided guidance on supplier and customer negotiations, ensuring sustainable contracts.

Step 3: Long-term financial planning and stability

• Developed a three-year financial forecast, mapping out potential risks and growth opportunities.

• Created a cash flow strategy to handle seasonal fluctuations and ensure consistent liquidity.

• Strengthened financial institution confidence, securing stable financing for future expansion.

The Outcome: A Business Turnaround and Sustainable Growth

The results speak for themselves. Within 18 months, Everwell Ingredients achieved the following:

• Increased cash flow. Improved financial management led to a 30 percent boost in cash flow.

• Enhanced profitability. Focused on high-margin opportunities, leading to long-term success.

• Gained financial security. Transitioned from a loss position to over two million dollars in net equity.

• Built a resilient growth strategy. Positioned for continued success despite market challenges.

"ClarityCounts provided exactly what we needed to navigate a rapidly changing market. Their strategic insights, cost recovery initiatives, and long-term planning turned our business around. We went from a loss position to a two million dollar net equity, giving us the confidence to seize future opportunities."
– Managing Director, Everwell Ingredients

What This Means for SMEs

Everwell Ingredients is not alone. Across Australia, SMEs face rising costs, supply chain disruptions, and financial uncertainty. Without strategic financial management, businesses risk the following:

• Cash flow shortfalls that stunt growth

• Profitability struggles due to outdated pricing models

• Limited access to funding from financial institutions

With the right insights, these challenges become opportunities for transformation.

Is your business facing similar struggles?

Let’s talk. ClarityCounts specialises in helping SMEs turn financial uncertainty into clarity, confidence, and sustainable growth.

Contact us today to see how we can help you build resilience and unlock new opportunities.