Fix the process, not the problem
At EHP, we believe in constantly reinvesting ourselves to grow. Our business is made up of many processes, in the plantations, & in our head office, from harvesting to selling to financing. There are always problems, our solution is to improve the process. Follow how we change to grow, here.
Balance sheet 2016
In 2016, as a result of years of expansion of our young plantations, we had built up debts & as the development of new plantations has slowed in recent years & our existing plantations are now maturing, our debts were increasingly short term.
Aligning our debts
After our 2015 integration, we took advantage of a bigger size, increasingly mature assets and strong financial relationships to begin stabilizing our balance sheet. We refinanced our loans with longer maturities, lower interest rates and for the first time reduced our current liabilities rather than new planting as previously. Our debts are now expected to decline.
New purchasing power
We were also able to take advantage of two purchasing systems & a greater purchasing power to improve the process with suppliers. During 2016, our purchasing, legal and finance teams worked together to negotiate for better terms. Where possible, contracts were terminated in order that we could start afresh with better terms. You can see the impact lower short term liabilities.
Better buying
To fix the process, rather than the problem, have now become more selective in new contracts, choosing suppliers who can support our operations according to our sustainable standards. We also leverage our economies of scale to purchase in amounts which match our operational requirements to keep inventory low. We use our SAP system to manage all our supplies .
In 2016, as a result of years of expansion of our young plantations, we had built up debts & as the development of new plantations has slowed in recent years & our existing plantations are now maturing, our debts were increasingly short term.
Aligning our debts
After our 2015 integration, we took advantage of a bigger size, increasingly mature assets and strong financial relationships to begin stabilizing our balance sheet. We refinanced our loans with longer maturities, lower interest rates and for the first time reduced our current liabilities rather than new planting as previously. Our debts are now expected to decline.
New purchasing power
We were also able to take advantage of two purchasing systems & a greater purchasing power to improve the process with suppliers. During 2016, our purchasing, legal and finance teams worked together to negotiate for better terms. Where possible, contracts were terminated in order that we could start afresh with better terms. You can see the impact lower short term liabilities.
Better buying
To fix the process, rather than the problem, have now become more selective in new contracts, choosing suppliers who can support our operations according to our sustainable standards. We also leverage our economies of scale to purchase in amounts which match our operational requirements to keep inventory low. We use our SAP system to manage all our supplies .