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Paper Recycling March 31, 2021 05:35:17 PM

Bio Pappel Profit Margins Slumped Despite Surge in Shipments

Paul Ploumis
ScrapMonster Author
The net sales for 2020 surged higher by 5.7% from 2019.

Bio Pappel Profit Margins Slumped Despite Surge in Shipments

SEATTLE (Scrap Monster): Mexico City-based leading paper producer Bio Pappel reported results for the previous year. The company’s profit margin narrowed in 2020, despite higher overall shipments when matched with the prior year.

According to company press release, the shipment of finished products from its mills in the U.S. and Mexico stood higher by 3.1% in 2020, as compared with the year before. The company shipped 1.684 million tons during the previous year. The net sales for 2020 surged higher by 5.7% from 2019.

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The higher shipments were despite the huge drop in paper consumption due to closure of offices and schools worldwide, following the spread of Covid-19. Despite shipping higher volumes, the company’s profit margins plunged, courtesy to elevated fiber feedstock prices. The scant supply resulted in higher raw material prices, it noted. The EBITDA margin reported decline from 20.8% in 2019 to 17.7% in 2020.

Miguel Rincón, director general, Bio Pappel noted that the positive results achieved by the company during 2020 demonstrate its strong operational, financial, market and management fundamentals. The company is optimistic about growing its presence in the U.S. market in 2021, he added.

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