Companhia Melhoramentos de São Paulo (MSPA3) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was R$43.388m, up 8% YoY; net loss widened to R$10.318m from R$6.965m.

• Operations improved YoY in Editorial and fibers, while lower paperboard production continued to pressure the forestry business.

Financial highlights

• Net revenue was R$43.388m, up 8% YoY and down 3% QoQ; adjusted net revenue was R$46.550m, up 9% YoY and down 14% QoQ.

• Gross profit rose 3% YoY, though fixed production costs were less diluted; consolidated operating result before finance and taxes was a R$3.013m loss.

• Net loss was R$10.318m versus R$6.965m in Q1 2024; basic loss per share was R$1.61094 versus R$1.08750.

• EBITDA was R$1.873m, down 80% YoY; adjusted EBITDA, excluding non-cash accounting movements, was R$1.012m versus R$0.242m.

• Net financial expense increased to R$6.575m from R$5.573m, reflecting higher interest and foreign-exchange expenses.

Outlook and guidance

• The new sustainable-packaging unit remained on schedule to begin operations in Q2 2025.

• Altea continued developing its landbank through partnerships and advanced tourism plans for Monte Verde, alongside logistics, industrial, residential and environmental-services projects.