From margin loss to margin gain: why profit recovery matters more than ever

Day in, day out, I work alongside suppliers to help them realise the full value of their trade agreements. I see that suppliers today are working harder than ever — but seeing less in return. While revenue growth remains strong in many sectors, profits are being chipped away by rising costs, operational complexity, and unseen leakage in commercial agreements.

That’s why Salitix set out to create From margin loss to margin gain: A profit recovery guide for FMCG suppliers — a detailed look at what’s really happening behind the numbers, and what suppliers can do to take back control of their margins.

Built on in-depth interviews with retail experts, supported by independent data, and shaped by Salitix’s extensive experience in frictionless profit recovery, the report is designed to offer clarity and action. It’s not just a snapshot of the challenges. It’s a practical tool for commercial and finance leaders who are ready to reclaim lost margin — without disrupting their retailer relationships.

Why Salitix created this report

For over a decade, Salitix has worked with FMCG and retail suppliers to recover revenue lost through misallocated trade spend, pricing errors, and contract drift. In that time, we’ve recovered over £100 million for our clients — and we’ve seen how often the problem isn’t fraud or failure, but complexity and capacity.

Our in-depth report reveals that most suppliers don’t have the time, resource or data visibility to catch every discrepancy — especially when commercial teams are being asked to do more with less. Junior staff are being fast-tracked into big roles without the experience to challenge deductions or validate agreements. Transformation projects eat up bandwidth. And “good enough” becomes the default when the real cost of missed profits remains hidden.

We created this guide to challenge that status quo, and to prove there’s a better way. One that’s collaborative, fair, and commercially sound.

A new view of a fast-changing market

The guide brings together exclusive insights from voices across the industry, including:

• Ged Futter, former senior buyer at Asda and now an independent advisor to brands
• Nick Downing, retail strategist and non-exec director
• Guy Cuthbert, supplier data platform expert
• Ben Lewis, commercial lead at Salitix

Together, they paint a picture of an industry under strain — but not without options.

Here are just a few of the insights that emerged:

🔹 Sales are up — but profits are lagging behind.
In Q1 2025, 44% of manufacturers reported increased sales — yet only 17% saw profit growth. Costs are up, margins are down, and many suppliers are unknowingly leaving value on the table.

🔹 Leakage is often hidden — but costly.
From incorrect deductions to forgotten rebate terms, many suppliers are missing out on money that’s rightfully theirs. With thousands of products, constant promotional changes, and limited audit bandwidth, it’s easy for value to slip through the cracks.

🔹 Commercial complexity is overwhelming teams.
Rising staff turnover and rapid promotions mean newer team members are managing high-value accounts without the training or systems to maintain accuracy. That makes suppliers more vulnerable to mischarges — and less able to challenge them.

🔹 Outsourced support is no longer a luxury.
Suppliers don’t need to go it alone. As Ged Futter notes in the report: “Why do you think all the retailers have forensic auditors in? Because there’s money for them to make. They haven’t got the time to do it, so they employ somebody else to do it.”

What frictionless profit recovery can offer

The report highlights Salitix’s unique approach to profit recovery: a service designed to operate independently from commercial channels, preserving relationships while delivering meaningful financial returns.

It’s called frictionless profit recovery, and here’s how it works:

• No disruption to supplier–retailer relationships
• Deep forensic reconciliation of agreements, invoices and trade spend
• No upfront cost — suppliers only pay a share of recovered value
• Actionable insights to improve future accuracy and margin protection

On average, Salitix recovers 5% of annual net profit for suppliers, and helps teams understand exactly where leakage is happening so they can prevent it in future.

A call to action for commercial and finance leaders

The message is simple: profit recovery isn’t just about clawing money back. It’s about building resilience. It’s about fairness, accuracy, and protecting the commercial foundations of your business.

Whether you’re navigating high volumes of deals, short-term contracts, or the push-and-pull of CPI negotiations, this report can help you take stock — and take action.

You’ve already done the hard work. Now it’s time to make sure every penny of value makes it to your bottom line.