Empresas CMPC (CMPC) Q4 2023 earnings summary

Executive summary

• 4Q23 sales were $1,959M, down 2% YoY; EBITDA fell 50% to $229M and net income fell 84% to $35M from $221M, reflecting weaker pulp results and higher costs.

• Softys growth partly offset Pulp and Biopackaging pressure; Softys accounted for 51% of sales and 62% of EBITDA in 4Q23.

Financial highlights

• 4Q23 EBITDA margin was 11.7%, versus 13.2% in 3Q23 and 22.8% in 4Q22; operating income was $32M, down 75% QoQ and 91% YoY.

• FY23 sales rose 4% to $8,100M; EBITDA fell 37% to $1,337M and net income fell 53% to $470M.

• 4Q23 free cash flow was an outflow of $144M; FY23 outflow was $511M, versus $705M in FY22.

Outlook and guidance

• Softys presented its business roadmap toward 2028 and a renewed brand identity in December 2023.

• BioCMPC was in ramp-up at Dec. 31, 2023, on schedule and within budget; cumulative investment reached $513M.

• Sustainability goals include a 50% reduction in absolute Scope 1 and 2 emissions by 2030, zero waste to landfill by 2025, and 25% lower industrial water use per ton by 2025.