Bio PAPPEL S.A.B. de C.V. reported 2Q 2017 financial results. In this quarter derived from the strategy of imports substitution and increase in exports, sales increased 4% to $6,078 million pesos ($340 million), although shipments decreased 4%, reaching 422 thousand tons.
In this quarter, Bio PAPPEL continued its strategy of import substitution, improvement in the average price of products, and reduction in operating expenses that allowed us to offset the impacts of 6% devaluation and higher raw material and energy costs, to obtain an EBITDA of $947 million pesos ($53 million) in the quarter.
In the first half, sales increased 9% from $10,897 million pesos ($609 million) in the first half of 2016 to $11,864 million pesos ($663 million) in the first half of this year, maintaining the level of shipments.
In the first half of 2017, an EBITDA of $1,800 million pesos ($100.5 million) was recorded, similar to what was obtained in the previous year.
"During the first half of the year, the company increased its sales 9%, allowing us to compensate the 13% increase in cost of sales and record an EBITDA of $1,800 million pesos ($100.5 million), similar to the previous year. As we enter the second half of 2017, our focus will continue to be to improve our operating structure and market strategies," Miguel Rincón Arredondo, President and CEO, said.
Bio PAPPEL is the integrated producer of containerboard, uncoated free sheet, newsprint, corrugated boxes, cut size paper, notebooks, paper sacks,and other specialties.
