No. The agreements Apcotex gets into with their customers has variable pricing model based on the raw material. Generally, as the prices of raw materials increase they can pass on this cost to the customer. And they do as well for most of their products. In such cases they don’t lose much of the GM. Company did it well in 2020-2022 period.
Ofcourse, in some products company can’t pass on all the cost to customers. For example their current XNBR Latex is facing demand headwinds and thus to fight off the competition they are selling the XNBR at cost.
Similarly if the prices of raw material decreases they have to pass that cost savings to the customers. Now if they have excessive inventory of that raw material, they will take a hit on GMs.
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