Northstar AdvisoryDecision brief12 October 2026
Why is margin falling while revenue grows?
Prepared for the Harbour Foods board
Executive summary
Revenue grew 14%, but contribution margin fell 4.5 points. Growth came from wholesale, where rebates, freight and product mix all work against margin. Capping rebates and passing on freight recovers most of the loss.
- Revenue, FY26
- +14%
- Margin, now 29.6%
- −4.5 pts
- Rebates, now 11.8%
- +3.4 pts
RecommendationCap wholesale rebates at 9% and add a freight surcharge.
Key actionNotify the three largest accounts by 1 December.
Next steps
- Approve the rebate cap at the November board meeting.
- Introduce the surcharge for orders under 40 cartons.
- Reprice or retire the 12 SKUs below 15% margin.
- Review progress at 30, 60 and 90 days.