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Supremex Inc T.SXP

Alternate Symbol(s):  SUMXF

Supremex Inc. is a Canada-based company, which manufactures and markets envelopes and provides paper-based packaging solutions designed to the specifications of national and multinational corporations, direct mailers, resellers, government entities, small-medium enterprises (SMEs) and solutions providers. The Company operates through two segments: the manufacturing and sale of envelopes and the manufacturing and sale of paper-based packaging solutions and specialty products. It also manufactures and distributes a diverse range of packaging and specialty products, including high-end quality folding carton packaging and e-commerce fulfillment packaging solutions. Its other packaging and specialty products include the Conformer Products, labels, polyethylene bags for courier applications, bubble mailers and Enviro-logiX. It operates 10 manufacturing facilities across four provinces in Canada and six manufacturing facilities in four states in the United States.


TSX:SXP - Post by User

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Post by mrmoribundon Feb 24, 2022 1:16pm
216 Views
Post# 34458692

Apparent brilliant management of raw materials inventory

Apparent brilliant management of raw materials inventoryOne thing that I think hasn't gotten much attention was the company's management of inventory over the course of 2021.

Essentially, they appear to have dealt with the supply chain issues by bulking up on raw material inventories in anticipation of more supply chain issues.

2020 Q4 - $7.8 million
2021 Q1 - $8.6 million
2021 Q2 - $9.5 million
2021 Q3 - $12.1 million
2021 Q4 - $10.1 million

It has dipped a bit at the end of 2021 but, regardless, I suspect this has turned out to be fantastic for the company. If orders come pouring in and you have the inventory and your competitors don't (and can't get it in a timely manner), well, that is a formula for a cash flow dream come true.

Eventually the supply chain issues will lessen and things will go back to something more like just-in-time inventories. But in the meantime Supremex may have picked up numerous now-grateful long-term customers. So the benefit should outlast the supply chain crunch.
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