Rebuilding Trust - and Margins - in a Declining Print Market
- A Dutch printing and paper company was on the brink — burdened by heavy debt and declining revenues. The bank had placed it under special credit management and was preparing to withdraw its financing.
- We identified the true margin drivers and operational bottlenecks. The fast-growing colored paper division turned out to place a heavy strain on working capital, while other activities were stronger than initially thought.
- We explored the strategic options and helped shape a clear new course: divestment of underperforming segments, renewed focus on customer loyalty and margins in corporate print, and repositioning sheet-fed printing toward the online channel.
- The new direction convinced the bank: “We came here ready to pull the plug — but you’ve convinced us.” Trust was restored, and the company regained its future perspective.
Paper. We all use it — to write, to wrap, to print.
But the printing and paper market is shifting — structurally, sharply, and often unforgivingly. A Dutch group active in sheet-fed printing, corporate print, and colored paper found itself in troubled waters. Revenues declined. The bank lost confidence.
Tristan, strategy consultant at Het Strategiekantoor, was brought in to work with the management team to define a new course. What started as an analysis of margins and working capital evolved into a far-reaching restructuring — with clear decisions, internal alignment, and renewed trust from the bank.
Challenge.
The printing and paper industry is not for the faint-hearted — thin margins, fierce competition, and a structurally declining market. Still, this company had managed to grow for years. First organically, then through acquisitions. The result: a wide portfolio of activities — from sheet-fed printing to corporate print, and from envelope trading to consumer-facing paper concepts.
But just like in the rest of the sector, revenues started to fall. The growth had been heavily financed with debt, which now weighed heavily on the business. The bank had already placed the company under special credit management and was preparing to withdraw financing altogether. Without a credible new plan, continuity was at stake.
Approach.
At first glance, one division seemed promising: colored paper products. It was still growing and appeared to deliver attractive margins — on paper. But as any seasoned entrepreneur knows: paper is patient. And when a company’s survival is at risk, the first step is always the same: make sure you truly understand where the leak is.
Tristan got to work immediately. Not the kind of consultant who hides behind spreadsheets, but someone who’ll kick a box in the warehouse to see how stuck the inventory really is. He asked questions, walked the floor, and worked alongside the team to recalculate margins, reassess the cost structure, and analyze working capital usage.
The analysis revealed the true dynamics. What had internally been considered a crown jewel turned out to be a drag on the business. Inventory turnover was low, thousands of SKUs were outdated, and stock was bloated and hard to unwind. Margins that looked relatively attractive at first sight evaporated after allocating realistic commercial and operational costs. Selling these products required a disproportionate amount of custom work and sales effort.
Once the internal numbers were clarified, we looked at the broader strategic picture — and uncovered more hard truths. Colored paper wasn’t just financially problematic; strategically, its outlook was equally weak. Competition from low-cost Asian suppliers was rising fast, and the European distribution model favored large buyers with considerable leverage — leaving little room for improvement.
At the same time, we saw — together with the management team — that other business lines, once considered less promising, were in fact more solid. Corporate print had modest but stable margins, an understandable competitive landscape, and surprisingly high customer loyalty. We repositioned the division around long-term relationships and consistent value creation.
In sheet-fed printing, we encouraged the team to take a fresh look. By focusing on a specific product subset tailored for the online channel — with predictable volumes and lower indirect costs — a realistic path to profitability emerged. Key to success: better capacity utilization and smarter synergy with the existing client base.
The company’s wholesale function also got a strategic upgrade. Where in the past it was underused, we repositioned it as a key lever for margin improvement in the company supply chain.
The biggest hurdle, however, wasn’t technical or financial— it was human. One of the three managing directors had spent years building up the colored paper division as his personal mission. The discussions weren’t easy. No ‘death by powerpoint’ but by using clear scenarios, real cash flow impact and honest dialogue, we gradually built internal support for what was ultimately a necessary and responsible restructuring.
Within weeks, we had a new course — focused, realistic, and jointly supported:
We made the colored paper division carve-out ready and laid the groundwork for a potential sale.
We repositioned corporate print — with the attention it deserved, and a renewed focus on customer value and distinctiveness.
We mapped out the transition of sheet-fed printing toward the online channel.
We redefined the role of the wholesale business — using purchasing scale as a margin lever.
And Tristan presented the full strategy to the bank: backed by numbers, a clear risk assessment, and a concrete implementation plan.
Impact.
The presentation to the bank became the turning point. Two senior officers from special credit management were present. At the end of the meeting, one of them said:
“When we pulled into the parking lot this morning, we said to each other: this company isn’t going to make it. But you’ve convinced us. The bank will continue to support you.”
That trust was not only essential for the company’s survival — it gave the management team renewed energy and direction. Implementation is now underway: the colored paper carve-out is in motion, corporate print is growing in volume and value, and the first online successes are already visible.
What began as a crisis has become a strategic realignment with perspective. The industry remains tough — but this company is moving forward again, and looking ahead.