Dear Colleagues,
I write to you with more pride than I could ever have conceived in your accomplishments over the last 6 months. After a solid start to 2020, little went according plan in Q2 and even our most basic assumptions were challenged. COVID-19 has had and continues to have a devastating impact on people’s lives and the economy. However, in the face of an unprecedented crisis you have repeatedly demonstrated resilience, innovation and care.
1Q 2020 was one of the strongest starts that we have had to a financial year in recent memory, building on a strong 2H 2019, and creating the tailwind of three consecutive quarters of sales and profit growth. In two weeks in early April that all dramatically changed, as the lockdown took hold and many of our customers were forced to close, or saw demand evaporate. We all had to quickly adapt to very new working arrangements in the backdrop of great uncertainty.
April was a very difficult month as we have discussed given how quickly sales volumes declined. In May, we saw the start of a volume recovery and in June we expect our sales to surpass the prior year. July 2019 was a very strong month and was the start of a period of growth for us, so we have much to do in the coming months. However, you can be pleased with and take confidence from the recovery in sales so far, which is a testament to the strength of your relationships and the resilience of our business.
The last few months have been a period of tremendous innovation. Our plants and DCs have devised and implemented new working practices to protect health and all of you who work there have been beacons of inspiration for us all. You have continued put our customers first and to win new business as a result, and our share of voice in the market has never been so strong. From not far short of a standing start, you have deployed an industry-leading suite of digital tools for our customers including the MyPuratos webshop, MyLink and Bakeronline.
You have continued to operate the business with discipline and rigor, managing receivables and inventory carefully, and delivering significant savings. You have taken the opportunity to improve our business – reporting, processes and data have all taken leaps forward. During this tumultuous period, you have not only navigated the crisis but also looked to the future, planning and executing recovery initiatives that build on our existing strategies and position us to win in the new normal.
Most of all, and most importantly, you have demonstrated great care for each other, your customers and community. It has been humbling to see people live our values more than ever during the most trying of periods. For many, this has been while balancing increased responsibilities at home. Our CSR program is making an impact in communities where there is desperate need, and together we are starting our journey to greater diversity and inclusion, although there is much to do.
In a recent blogpost, I outlined that I believe that our industry has great reasons for optimism due to consumer demand, our ability to innovate and the care displayed for the community. Who better to take a leadership role in this than a group of people who have a deep understanding of consumer trends, a proven ability to innovate, and a deep commitment to making a lasting social contribution? With the current increases in the COVID-19 cases and the historical issues that we have been working through, let me say with sincerity that the path forward will not always be smooth and that there will be setbacks.
However, this does not mean that I do not have great optimism for the future and even more than I had before the crisis. I hope you feel like I do that this crisis has been a galvanizing moment for our company, and that it has shown us how quickly and effectively we can overcome obstacles and execute activities when we work together with a clear purpose. Please accept my sincere thanks for everything you have done. Let’s move forwards in 2H 2020 with confidence and purpose, and with the goal of fully recovering our hard won 2019 sales by the year end.
I wish you and your loved ones an enjoyable and relaxing holiday weekend, and I look forward to speaking with you next week at the July Town Hall.
Kind regards,
Andrew Brimacombe
President – Puratos USA