It’s often been said that one should never let a good crisis go to waste. Probably used for the first time by Winston Churchill during World War II, it is a statement that can apply to many scenarios.
The situation facing Richard Manzini when he was appointed as Chief Executive Officer of Daybreak Foods was dire. To the long-running and somewhat predictable problem of loadshedding was added an outbreak of avian influenza which had a huge impact on all of the country’s poultry producers. In order to continue to supply customers, Daybreak Foods had to buy eggs and chicks, an expensive operation.
A third factor was increasing input costs and there was also the fact that the company had not turned a profit for some time. In addition, a company statement put out at the time that Manzini began the restructuring process referred to the fact that “Daybreak Farms’ corporate image had been marred by negative media” related to financial management. The company has since been renamed Daybreak Foods and it is wholly owned by the Public Investment Corporation.
In announcing the appointment of new people in the posts of Chief Commercial Officer, Chief People Officer and Chief Operations Officer to work with Manzini, the company stated that the new appointees would be “focused on reshaping Daybreak Farms’ reputation through the delivery of quality products, ethical operations and positioning the company as an employer of choice”.
In selecting Richard Manzini to lead the company’s revitalisation, the PIC chose an eminently qualified person. His four degrees range across business, law and science and include an MBA, an MSc and a Master of Management in Finance and Investment from Wits Business School. In the light of those qualifications, Manzini was as well prepared for tackling a financial turnaround as it is possible to be.
Daybreak Foods is bigger than me, which is why I want to build an incredible team of experts and individuals around me to make sure I make the right decisions for the people and business.
Add in nearly a decade’s worth of originating, executing and managing private equity, private credit and impact investments in emerging markets for the PIC and a two-year spell as a non-executive director of Southern Farms and it becomes clear that he was almost uniquely qualified for the role of CEO at that time in the company’s history.
This really was a case of “cometh the hour, cometh the man”. Crucial as the decision was to appoint the correct person, Manzini himself is focussed on building a good environment for leadership. As he says, “Daybreak Foods is bigger than me, which is why I want to build an incredible team of experts and individuals around me to make sure I make the right decisions for the people and business.”
The turnaround strategy
Financial controls and improved governance were top of the agenda to turn the Daybreak ship around. With a stronger board in place, clear lines of authority and transparent accounting procedures established, the company can move forward with confidence. Not only confident within itself and among the staff, but also assured that the governance infrastructure will pass muster with the shareholder and any potential investors or customers.
The turnaround strategy has been underpinned by two core pillars: people and data. Get the right people into the right jobs and motivate them. Then make sure that reliable and relevant information is improving operations and making reporting more reliable.
Says Manzini, “The right mix of technology and people will translate into even more growth for Daybreak, and with the strong and dedicated leaders in the various departments I am confident that this growth will be quickly attained and steadily improved.”
Data analytics
The sensible use of data is already making an impact. “We’ve seen significant improvements in supply-chain management, demand forecasting and operational efficiency,” says Manzini. “The data analytics capabilities have enabled us to respond swiftly to market trends and customer needs.”
This has resulted in enhanced decision-making and accountability. “We’ve seen notable improvements in internal controls, audit processes and compliance,” reports Manzini, with a good balance being struck between accountability at all levels and empowerment of staff.
He expands, “It has enabled clear lines of authority, streamlined decision-making and fostered a culture of ownership among senior management. This has led to improved productivity, reduced bottlenecks and enhanced collaboration across functions.
“We’ve implemented robust financial management systems, enhanced internal audit processes and established clear policies and procedures. I had to make sure that our financials are valid, accurate and complete. These measures have significantly improved our financial reporting, reduced risks and enabled data-driven decision-making.
“It has also sought to give comfort to our stakeholders that use our various reports to make informed economic decisions.” As a result, Daybreak is on track to achieving profitability, with significant progress made in cost management and revenue growth.
People focussed
“I’m proud of each and every one of our employees and excited about our future prospects,” says Manzini, highlighting one of the key features of his management philosophy.
He continues, “Essentially, this business is its people. Not only is it my mission to build a profit-making business, but to build one where people feel free to be themselves, to bring their strengths to table. Even the most junior staff can have opinions that can cause rapid or distinctive improvements within the business, which is why I listen to them as much as I do to my more senior staff.
“The heads of each department spend hours at their post. Their ‘can-do’ attitudes and their easy way of sharing means that every day they teach me more about our business and our operations and they are fully committed to our stated objectives. They are making decisions daily, managing change-management processes and practices without seeming to tire. Because of this elevated level of teamwork, we have seen cost savings, and furthermore, behavioural changes that bodes well.”
The goal is to create an environment where employees are empowered to excel, innovate and grow. Performance-based incentives are set to play a key role in achieving this vision. Creating employment opportunities in local communities and playing a role in supporting local economies is also something Manzini is pleased with.
Manzini asserts, “Our staff are our greatest asset, and we’re committed to their development and well-being. Staff have embraced development opportunities and I’m proud of their growth. We’ve invested in training programmes, mentorship initiatives and education assistance to support their career aspirations. Our goal is to create a culture of continuous learning and development,” says Manzini.
“I think one of the greatest abilities a leader can have is to connect with people of all levels. To this end I ensure that I am as comfortable with high-powered individuals as I am with the sweepers at the plants. It’s about meeting the needs of Daybreak’s employees and winning back the community wherein the business operates. Daybreak needs to cement itself and reclaim our market share, at every level.”
Says Manzini, “I have the utmost admiration for my team, they truly deserve the recognition and more importantly, on any platform. I convey my gratitude for the work they have done in steering us to where we are.
“While there is a journey we need to take with Daybreak, I’m clear of what that entails and how we reposition it. I want to remain extra vigilant to the compact we have signed with our employees, the promise of job security and alignment with our principles and values. We care, we make the right business decisions and we make informed decisions.”
In line with the commitment to making a positive impact in the communities that Daybreak Foods serves, the company has launched the Youth Employment Service (YES) programme, a strategic initiative aimed at addressing the pressing unemployment challenge in South Africa. The first phase of the partnership with the YES Programme will provide 104 participants with work experience across all sectors of Daybreak’s business, giving a new generation of agribusiness leaders a taste of what to expect in the world of work.
Into the future
With the C-Suite now running smoothly with highly qualified executive and non-executive directors, strategies for sustainability and growth are being worked out in respect of challenges in the existing market and possible future opportunities that might lie ahead.
The board of the PIC handed the management and CEO a large vote of approval in the way that the turnaround had been handled in September 2024 when a loan of R250-million was approved. With stability in the boardroom and staff buying into the steps taken by the CEO, the focus can now be on the future. The money will be used to bolster the balance sheet of the firm and to upgrade various machines and to invest in a water-treatment plant that will improve efficiency in the processing of chickens.
The CEO is upbeat about the future, but speaks in measured tones about expansion: “Our immediate aim is to figure out segments that are profitable and maintain market share. We anticipate positive growth over time as we defend our position. We will seek to expand over time in tandem with improved economic conditions.
We’ll continue to invest in innovation, enhance our operational efficiency and pursue strategic partnerships to drive business growth. Our long-term vision is to solidify our position as a market leader and expand our footprint into new markets.
“The growth story of Daybreak Foods is that we are and will continue to be more than a food or protein business, we will play across the entire value chain. And this strategy excites me,” adds Manzini. “We aren’t just looking for more SKUs, but other divisions; we are looking to broaden our product offering and while growth might start off in an organic way, inorganic growth will be optimistically pursued with the support of the board and the shareholder.”
Manzini is looking at the long term: “We’ll continue to invest in innovation, enhance our operational efficiency and pursue strategic partnerships to drive business growth. Our long-term vision is to solidify our position as a market leader and expand our footprint into new markets.”
The experience of being CEO of Daybreak Foods has reinforced for Manzini the importance of people, adaptability, strategic planning and empowering leadership. He says, “We continue to navigate complex challenges and a very tough operating environment.”
The challenges that the poultry industry faces are not going to magically go away. These include changes in regulation, supply-chain problems and fierce competition. Manzini responds by listing the practical steps that Daybreak Foods is taking: “We’re investing in market research, developing agile business models and fostering strong relationships with stakeholders to navigate these challenges and capitalise on opportunities.”
Manzini is confident there will be a return. As he sees it, “We have put in place all the ingredients that will see us delivering on value for our stakeholders.”
Contact Daybreak Foods
- Address: 31 Spanner Rd, Clayville Industrial, Olifantsfontein, Gauteng 1666
- Tel: +27 (12) 641 0050
- Email: Infodb@daybreak.co.za
- Website: www.daybreak.co.za
