Case Studies

Unlocking Liquidity & EBITDA at a Growing Food Manufacturer

3 minute read

EXECUTIVE SUMMARY: Catena’s consultant serving as the interim VP of Transformation rapidly turned around performance at this high-growth food manufacturer, improving yields, throughput, service, and forecasting while reducing costs and unlocking liquidity. The company realized $12M in EBITDA impact within months, cut forecast error from 39% to 4%, and delivered multimillion-dollar savings across procurement and logistics. The result: restored financial stability and a repeatable operating model for sustainable growth.

The Challenge: Growth Outpacing Operational & Financial Capability

A better-for-you food manufacturer that serves major retailers was scaling quickly, but its operational and financial functions weren’t keeping up. After bringing a new poultry facility online, the organization faced mounting pressures:

• Negative adjusted EBITDA and tightening liquidity
• Poultry yields stuck in the low-80% range
• Rising transportation and warehousing costs
• Millions tied up in aged receivables and deductions
• Forecast error at 39%, making planning unreliable
• No integrated plan aligning demand, cost, capacity, and cash

Ultimately, the private equity board and C-suite needed a senior leader who could stabilize performance, restore financial clarity, and build a credible EBITDA improvement plan.

The Solution: A Hands-On Transformation Management Office (TMO)

Catena brought in an interim VP of Transformation, who designed and led a Transformation Management Office (TMO) that acted as the company’s operational “control tower,” integrating performance management, financial discipline, operational improvement, and commercial alignment. Focus areas included:

Enterprise Visibility & Leadership Alignment

• Built a weekly Run-the-Business dashboard integrating Sales, plant performance, yields, logistics, A/R, deductions, safety, quality, and cash.
• Launched a weekly TMO governance rhythm with clear KPIs, named owners, and a Key Initiative Review tied to EBITDA.
• Standardized reporting and storytelling for the private equity board and C-suite.

Cash Discipline & Working Capital Recovery

• Implemented a 13-week cash flow model connecting demand, production, inventory, freight, receivables, payables, and CapEx.
• Led A/R, deductions, and A/P cleanup to release liquidity and tighten controls.

Operational Efficiency: Yield, Throughput & Cost Optimization

• Led cross-functional teams in manufacturing, procurement, operations, and logistics.
• Built a structured savings roadmap across yield, procurement, labor, logistics, and working capital.
• Improved line design, throughput, labor utilization, and plant reliability.

Commercial Alignment & Forecast Accuracy Improvement

• Improved forecasting accuracy, enhancing production and logistics planning.
• Built a consolidated $63M 2025 growth engine at the retailer/SKU level aligned to plant capacity and profitability.

The Benefit: Enterprise-Wide Performance & Financial Gains

The TMO delivered enterprise-wide impact, including:

Yield & Throughput Gains

• Poultry yields improved from low-80% to 100-110%
• Core platform SKUs hit best-to-date yields of 115% of standard
• Throughput improved 40%, with 4 labor heads removed per shift
• $11.5M EBITDA opportunity identified; $6.6M realized or locked in

Procurement Savings & COGS Reduction

• $1.1M late-year packaging & ingredient savings
• $1.36M 2025 YTD dry goods savings toward a $4M program
• Combined: $2.4-2.5M in total realized savings on the way to $4M+ annualized

Service Performance & Forecast Accuracy

• Forecast error was reduced from 39% to 4%
• Must Arrive by Date (MABD) improved from the low-80% range to 100%
• Out-of-stocks dropped from 29% to 3-4%
• $26.6M confirmed from the $63M growth pipeline

Transportation & Warehousing Cost Reductions

• Shuttle cost cut from $600 to $310 per load ($300k annual savings)
• Pallet optimization resulted in $800k in annual T&W savings
• West Coast consolidation added $156k in savings
• A redesigned retailer freight plan brought an 18% reduction in delivered cost, worth about $4.9M in projected annual savings

Finance, Working Capital & EBITDA Uplift

• Built a $19M EBITDA improvement bridge
• $12M executed or contractually locked within months
• A/R outside terms reduced by 78% collected/in process
• Deductions reduced $4.8M to $2.1M
• Inactive A/P reduced by 85%
• Weekly net cash moved from strongly negative to near breakeven and positive weeks, improving end-of-month cash by several million dollars versus early forecasts

Overall, the engagement delivered immediate financial stability, stronger operational performance, and a scalable operating rhythm for the leadership team and private equity board. The TMO structure, reporting, and governance cadence remain in place today, continuing to support visibility, accountability, and sustainable EBITDA growth.

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