Mexican major paper, packaging producer Bio Pappel S.A.B. de C.V. recorded solid results despite a substantial increase in the costs of its raw materials and energy during the 1Q 2017. Resulting from the strategy of import substitution and increase in exports, sales increased 15% in this quarter, from $5,044 million pesos ($267 million) to $5,786 million pesos ($307 million), due to a 4% growth in shipments, reaching 426 thousand tons compared to 410 thousand tons in the same quarter of the previous year, as well as an increase in the unit sales price of 10%.
Bio Pappel obtained an EBITDA of $853 million pesos ($45.2 million) in the quarter, representing a 15% increase compared to $744 million pesos ($39.4 million) generated during the same period of 2016. This quarter the company reached a EBITDA margin of 14.7%, remaining the same as the 1Q 2016.
"In this quarter, the company showed the strength of its structural fundamentals and we beleive it is well positioned to compete competitively in a new international business environment where paradigms are changing," said Miguel Rincón Arredondo, CEO and CEO.
Bio Pappel is the integrated producer of containerboard, uncoated free sheet, newsprint, corrugated boxes, cut paper, notebooks, paper sacks and other paper specialties. Bio Pappel operates 30 production facilities and 13 recycled fibers collection centers in Mexico, Southern U.S.A. and Colombia.
