Inapa posts €16M for H1

Portuguese paper distribution company Inapa reported a profit of €16 million for the first half of the year.

The company led by Diogo Rezende benefitted from revenues from paper sales and an improved gross margin, as well as reduced overhead costs despite higher transport costs.
However, Diogo Rezende has admitted to difficulties in supplying enough paper to meet demand and in an interview with ECO, the CEO said that Inapa has had to pass on price increases of over 30% on average.
The closure or reconversion of paper factories during the pandemic, continuing logistics problems at an international level and the war in Ukraine are causing disruptions in the supply of paper.
Despite provisioning capacity and strategic agreements with several suppliers, the CEO of Inapa – which ceased industrial production in 2000 when it sold its industrial assets — said the company was having to turn down large orders because of a lack of paper.
However, the group says it wants to widen its geographical footprint and products portfolio in sectors other than paper distribution since Portugal only has 5% of its sales.
Diogo Rezende says that the company is looking to buy companies in the packaging and visual communication sector overseas” that would enable it to “create value by enlarging its geographical presence” in terms of its product portfolio.