Klabin (KLBN4) Q3 2024 earnings summary

Executive summary

• Net revenue reached R$4.999 billion in 3Q24, up 14% year-over-year, driven by higher pulp and containerboard prices, increased paper and packaging sales, and FX gains.

• Adjusted EBITDA rose 33% to R$1.805 billion in 3Q24, with a margin of 36%, expanding five percentage points from 3Q23.

• Strategic capital allocation included the acquisition of the Caetê Project, leading to significant cost reductions and operational synergies.

• Focus remains on deleveraging and free cash flow generation, with growth investments deferred and new policies reinforcing payout and leverage discipline.

• Net income was R$729 million in 3Q24, up from R$245 million in 3Q23, reflecting improved operational performance.

Financial highlights

• Net revenue: R$4.999 billion in 3Q24, up 14% year-over-year.

• Adjusted EBITDA: R$1.805 billion (+33% YoY), margin 36% (+5 p.p. YoY).

• Net debt: R$29.5 billion as of September 30, 2024, mainly due to the Caetê Project payment.

• Dividend yield: 6% over the last twelve months, with R$1.4 billion paid.

• Total cash cost per ton: R$3,091 for 9M24, down 6% year-over-year, reflecting forestry synergies.

Outlook and guidance

• Short fiber pulp faces uncertainty in China, with a slight price drop expected in Q4, stabilizing thereafter; prices for fluff and long fiber expected to remain positive.

• Paper and packaging segments maintain positive price trends, with volume impacted by maintenance stoppages.

• Management expects continued improvement in packaging and paper market conditions, with logistics issues gradually resolving.

• Project Plateau, a R$1.8 billion forestry partnership, aims to monetize land and optimize capital allocation.