Founded in Australia in 2007, Sukin set out with a bold mission to make natural beauty products accessible to all. However, by late 2022, the company found itself in a critical financial bind, grappling with a severe shortage of working capital. This shortage prevented Sukin from securing the essential raw materials needed for production, leading to widespread product shortages and an inability to meet the growing demand from eager customers. KPMG was appointed to implement strategic initiatives that put the natural beauty brand back on track.
About the client
Client: Sukin
Project: Restoring an accessible and sustainable Australian beauty brand.
Location: Melbourne
Sector: Corporates
Services: Operational Efficiency, Product Development & Marketing
What was needed
In response to financial challenges, we were appointed by Sukin to help steer the company back on track. A bold and strategic approach was essential to revive operations, restore fulfilment to optimal levels, and prepare the business for a successful sale to potential buyers.
What we did
We took action, implementing a series of strategic initiatives to put Sukin back on track. We injected $14.5 million into purchasing raw materials, rapidly restocking inventory to meet growing demand. As a result, order fulfilment soared from less than 50% in March 2023 to an impressive 99% by March 2024. Production also surged, with units produced jumping from 1.9 million in the months ending April 2023 to 3.3 million in just three months by March 2024.
Our team streamlined operations, optimising efficiency by reducing daily shifts, while increasing output. At the same time, we directed significant investment into new product development and marketing, helping to strengthen Sukin’s market position and expand its share throughout the receivership period.
What we delivered
The results of these strategic initiatives were nothing short of remarkable. Sukin’s gross monthly sales skyrocketed from $4.2 million in April 2023 to an impressive $7.5 million by March 2024.
These operational improvements not only revived the business but also set the stage for a successful sale. In January 2024, Australian manufacturer PNB Consolidated acquired Sukin, ensuring the brand's continued presence in Australia. The acquisition preserved the livelihoods of Sukin’s 100-strong workforce, with the majority transitioning to the new owner, guaranteeing business continuity and stability for suppliers.
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