RAW MATERIAL INFLATION AND MARGIN EROSION.

Situation

Industrial group exposed to significant raw material price volatility.

Sharp increase in procurement costs and rapid margin erosion.

No consolidated tools to manage pricing, mix and profitability.

Discrepancy between commercial policy and economic reality.

Growing pressure on cash generation.

Decisions and mechanisms implemented

Structured analysis of product portfolio and contribution margins.

Targeted pricing adjustments by segment and channel.

Streamlining of low-profitability references.

Introduction of real-time margin monitoring indicators.

Alignment between commercial and finance teams.

Outcomes

Margins stabilized in less than one financial year.

Sustainable restoration of profitability levels.

Portfolio refocused on segments with a positive contribution.

Strengthened operating cash flow.