Empresas CMPC (CMPC) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales were $1.919 billion, down 3% quarter-over-quarter and 2% year-over-year, mainly due to lower revenue in Pulp and Softys, partially offset by growth in Biopackaging.

• EBITDA reached $332 million (17.3% margin), down 23% quarter-over-quarter but up 45% year-over-year.

• Net income was $10 million, a sharp decline from $147 million in Q3 and $35 million in Q4 2023, mainly due to lower EBITDA and higher deferred tax expense.

• Pulp contributed 65% of EBITDA, Softys 30%, and Biopackaging 5%.

• Pulp sales volume increased 10% quarter-over-quarter, but lower prices impacted revenue; Softys faced a 6% sales drop due to currency depreciation and weak demand; Biopackaging sales rose 4% on higher volumes.

Financial highlights

• EBITDA decreased 23% quarter-over-quarter, primarily due to lower average pulp prices, but rose 45% year-over-year.

• Net income dropped to $10 million, down 93% quarter-over-quarter and 70% year-over-year.

• Operating costs rose 2% quarter-over-quarter but fell 10% year-over-year; other operating expenses increased 3% quarter-over-quarter.

• Free cash flow was a net outflow of $109 million, compared to an inflow of $61 million in Q3.

• Investments in Q4 2024 totaled $261 million, up 35% quarter-over-quarter and 19% year-over-year.

Outlook and guidance

• Management expects further cost improvements in pulp and packaging, with ongoing competitiveness initiatives.

• Pulp prices increased in January 2025, with expectations for higher prices through the year, though market uncertainty remains.

• Softys targets EBITDA margins of 15% and above, despite ongoing currency and competitive pressures.

• CapEx for 2025 is budgeted at $600–$700 million, with about half allocated to forestry assets.

• Company remains focused on sustainability, operational efficiency, and market adaptation amid currency and price volatility.