In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Klabin SA (KLBAY) reported a 10% increase in net revenue for Q1 2025 compared to the same period last year, driven by higher prices for craft liner and packaging.
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The company achieved an adjusted EBITDA of 1.9 billion reais, up 13% from Q1 2024, with a margin increase of 1 percentage point.
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Klabin SA (KLBAY) successfully reduced its net debt by approximately 2.8 billion reais, attributed to the appreciation of the real against the dollar and positive free cash flow.
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The company maintains strong liquidity, ending March with 9.3 billion reais in liquidity, including cash and undrawn revolving credit facilities.
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Klabin SA (KLBAY) continues to focus on production ramp-up for Puma 2 and cost optimization initiatives, supporting its commitment to cash cost guidance for 2025.
Negative Points
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Sales volume decreased by 2% compared to Q1 2024, due to lower production volume from one-off maintenance events.
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The company faces challenges in the short fiber market, with a negative trend expected due to China's tariff policies affecting exports.
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Klabin SA (KLBAY) anticipates potential pricing pressure on craft liner due to possible recessionary trends in the United States.
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The company is experiencing a neutral demand environment for industrial bags, with no expected increase in sales volume.
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There is concern about increased imports of coated boards from China, which could impact local market dynamics and pricing.
Q & A Highlights
Q: Can you provide more details about the non-recurring maintenance stoppage at the pulp operation and the expected production for the year? Also, how is the performance of Paper Machine 28, especially regarding the production mix for coated boards? A: Cristiano Teixeira, CEO: We expect a positive operational year with 200,000 tons more production compared to 2024. The issues at the beginning of the year were temporary and have been resolved. Paper Machine 28 is performing well, transitioning from container boards to coated boards, and is expected to meet our business plan targets.
Q: How do you see the demand for corrugated boxes in the current high-interest rate environment, and has there been any improvement in demand expectations? A: Douglas, Corrugated Boxes Division: The market is stable, with a slight drop in the first two months but growth in March. We expect a strong year ahead with low unemployment rates in Brazil, and we have been able to pass through prices above inflation, maintaining a positive outlook for 2025.