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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 in two reporting 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 folding carton packaging and e-Commerce fulfillment packaging solutions. Other packaging and specialty products include the Conformer Products, labels, record sleeves and jackets, polyethylene bags for courier applications, bubble mailers and Enviro-logiX. It operates over ten manufacturing facilities across four provinces in Canada and five manufacturing facilities in three states in the United States.


TSX:SXP - Post by User

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Post by DanielDardenon Nov 12, 2023 1:42pm
252 Views
Post# 35730952

Dominant with Pricing Power

Dominant with Pricing PowerIn reviewing the recent results it is obvious how important pricing power can be if used correctly. Because of its’ dominance in it’s industry SXP is able to maintain cash flow even when business is down. Few issuers have this advantage as it can lead in upward pricing and at the same time increase market share. The small players merely follow along to stay profitable rather than compete on pricing. This has been the key to SXP’s success as they swallow competitors without increasing share count and buying back their shares. If the $1.5M/yr saving happens dividends should increase thereafter. 
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