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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

Comment by birderon Nov 07, 2024 9:17am
72 Views
Post# 36300705

RE:a friend of mine had a scheme

RE:a friend of mine had a schemeEnvelop EBITDA margins are down because of mix.
The margins are better in Canada as they run a quasi-monopoly, but it's more competitive in the USA.

Canadian volume isn't increasing as they already capture almost all the volume and this isn't a growing industry.
Incremental volumes comes from the USA.

That being said, they are restructuring their operation in Ontario with expected $2M in annual saving from closing facilities and consolidating volume into one plant. That will help margins.

Small US acquisitions like Forest Envelop could also help margin over time as they add volumes into existing plants. These aren't immediately showing as they need to transfer sales, machines, employees... which cost money up front.
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