CHICAGO, Dec. 27, 2021 /PRNewswire/ — Luster Products, an African-American family owned consumer products company announced the conclusion of a highly successful turnaround featuring robust profitability with enterprise value up 165%, a return to growth and closing on financing to support the continued investment in the business. Luster Group hired David Johnson of Abraxas Group, as Interim Chief Operating Officer to design and implement a turnaround plan following a multi-year stretch of underperformance. The business transformation plan addressed financial, operational and strategic challenges. Most noteworthy was the value creation that the company enjoyed, with the company value increasing by over 100% based on market comps.
With Abraxas, Luster was able to make significant gains in the following areas:
- Revenue Growth: 2020 and 2021 are the first years of positive, consecutive growth in over a decade
- Gross Profit: Up 6.6% on revenue increase and margin expansion
- Breakeven Point: Down 11.7% on cost controls
- Revenue Per Case: Up 5.2% due to portfolio rationalization
- Order Fill Rate: Up 34% peak to trough
- Backorder Rate: Down 80% peak to trough
"What David has built at Abraxas Group is special and my family and company have been the beneficiaries of that these past two years. He is simply a different type of consultant. He joined the team, rolled up his sleeves and he worked with us to craft a business transformation that would not only meet our business objectives but one that was true to the culture that my family has built and nurtured over 60 years," says Jory Luster, President and CEO of Luster Products. He added, "The fear of bringing in a turnaround expert at a crucial point for a company like Luster is that the consultant will come in and destroy the culture, the essence of the company. David came in with a different attitude and won over our team to help us move forward."
David Johnson, Founder and Managing Partner of Abraxas Group explains, "More than just the improved performance, Luster is now a company armed with a battle tested strategic plan that gives the owners and leadership team a playbook for success in the years to come."
He adds, "It’s a different company than it was at the end of 2019. Brick by brick we rebuilt, trained up people, brought in people and the end result is that Luster is fundamentally a different business, even though ownership and the cultural heart of the company has not changed."
About Abraxas Group
Founded in 2015 by David Johnson (@TurnaroundDavid), Abraxas Group has adopted and refined a service delivery model in which a single professional assumes a C-level leadership role and drives a business transformation. This approach has generated stellar results across industries and ownership structures in the Middle Market segment.
For more information about the consulting group, visit abraxasgp.com
Eunice Muñoz, 832-515-5189
SOURCE Abraxas Group