Post-pandemic financial recovery- KLK News

Post-pandemic financial recovery | by KLK

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Post-pandemic financial recovery

November 2, 2022

Last week, specifically on October 26th, under the organization framework of the Asturian Quality Club, a meeting was held in Oviedo with a current topic based on the post-pandemic financial recovery that our companies are going through.

From the Quality Club have gathered different Asturian companies and their top financial managers to share strategies, knowledge and ways of success in a working group where our financial director Alvaro Pidal Rodriguez, has been in charge of presenting our “how and why KLK, YES…”.

From the KLK blog, we would like to export to all regular readers the ideas that Pidal handles to understand “a post-pandemic at the level of opportunity” and how to get to assume cost increases, alternative financing sharing knowledge beyond a working table.

Alvaro Pidal |KLK Financial Manager

At KLK, we have experienced firsthand the impact of a succession of events.

Pidal, affirms that:

“One of the main implications of the Post-Pandemic era has been the breakdown of equilibrium in international markets. During the pandemic, all markets had to adapt their supply to the new demands generated by the new situation, giving rise to changing economic environments and great uncertainties. In fact, we can affirm that the markets, even today, are still searching for their rebalancing points.

All of this has forced companies to reinvent themselves, improving their flexibility and ability to adapt to change as part of the success of their survival.

At KLK, we have suffered first-hand the impact of a succession of events. From the international shipping crisis, to the increases in raw material costs that in 2021 reached record highs, and that are still looking for their break-even points.

KLK Export Zone| Pick by Daniel Rendueles

Like many other companies, at KLK we have worked on improving our capacity to adapt to change, trying to be more flexible, reducing external dependencies and looking for alternatives for our Suppliers and Materials identified as critical in our manufacturing processes.

As a “life insurance” or “floater”, we have also worked on improving our capacity to adapt to change. We have also worked on improving our working capital financing capacity, establishing internal control procedures that allow us to optimize our Trade Working Capital, and using tools to accelerate the conversion of our working capital accounts into cash. We believe that a “healthy” company is one that is capable of balancing its working capital accounts, and that, with the resources generated from a good Collections policy, is capable of attending to and meeting its payment obligations with employees, suppliers and other agents.

On the other hand, we have also worked on optimizing our stock levels through market and material studies, and focusing on an efficient management of available resources.