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 Biopackaging growth.

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

• Net income dropped sharply to $10 million, a 93% decrease quarter-over-quarter and 70% year-over-year, 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

• Consolidated sales declined 3% quarter-over-quarter and 2% year-over-year, with 12M24 sales at $7.743 billion, down 4% year-over-year.

• Operating costs rose 2% quarter-over-quarter but fell 10% year-over-year; other operating expenses were $330 million, up 3% quarter-over-quarter and stable year-over-year.

• 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, mainly for maintenance and organic growth.

• Net debt at quarter-end was $4.86 billion, with a net debt/EBITDA ratio of 3.15x, down from 3.3x in Q3.

Outlook and guidance

• 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 currency headwinds 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.

• Forward-looking statements highlight risks and uncertainties, particularly those in Note 3 of the financial statements.