A Christmas story: Roncadin
In s-peek we like to discover little-known stories of remarkable companies. Today we talk about Roncadin, a company risen from its ashes.
On the 22nd of September 2017, Roncadin, a leading producer of frozen pizzas, caught fire. 6 thousand square meters of the factory burned to the ground, right where 4 of the 6 production lines were located. The damages amounted to 50 million euros.
The story we are going to tell is above all a story of human solidarity. The day after the fire, the transport company Autotrasporti Tavano offered its means free of charge to move the left raw materials in the decentralized warehouses, while Zerbinati, producer of those raw materials, donated a batch of vegetables for the piazza's filling. Henkel Italia and Banca Friulovest also participated, the first delaying the payment terms and the second one suspending the mortgage ‘s installments of Roncadin employees.
How did the company rebound?
Let's take a step back, a few months before the blaze. In the financial statement of 2016, Roncadin's turnover amounted to 97 million, with over € 3 million in profits. s-peek shows us that it was economically and financially well-managed, with a BBB rating and a rather low probability of default.
Yet the leverage values were above the average, meaning that the company's indebtedness was high. On the other hand, the value of the liquidity and the profitability ratios were good, and the overall economic and financial situation was balanced.
One would expect all values to collapse after the blaze. Instead, Roncadin’s financial statement of 2017 shows a turnover of 128 million and profits of 7 million.
How did Roncadin manage to get back on its feet?
After the blaze, the company decided to continue the production with the only two plants left. The working shifts were rescheduled to ensure a non-stop production's workflow, 24 hours a day, 7 days a week. In a short time, Roncadin managed to return to the previous production levels, exceeding 2 million pieces per week.
However, the Roncadin family knew that a long-term strategy was needed to get back on track and opted for a € 35 million investment plan for the construction of new and more efficient plants.
In less than a year, Roncadin returned to growth. In 2018 the company recorded a turnover of 118 million, while the values of ROI and ROE far exceeded the sector average. Not only no one has been left home, but the number of employees has increased. All thanks to the brilliant economic and financial management.
With this happy ending story, we wish you a merry Christmas and happy holidays. See you again in January, ready to start with new energy.
What’s the story of your company?
If you want to share with us the story of your company, contact us at email@example.com specifying in the subject Little-known stories of remarkable companies. The most interesting ones will be published on this blog.
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