Klabin (KLBN4) Q3 2024 earnings summary

Executive summary

• Net revenue for Q3 2024 reached R$4.999 billion, a 14% year-over-year increase, driven by higher pulp, Kraftliner, and containerboard prices, increased paper and packaging sales, and currency depreciation favoring exports.

• Adjusted EBITDA was R$1.805 billion, up 33% year-over-year, with a margin of 36%, an improvement of 5 percentage points from Q3 2023.

• Sales volume reached 938 thousand tons, up 14% year-over-year, with strong growth in coated board and containerboard.

• Strategic capital allocation, including the acquisition of Arauco's areas and the Caetê Project, led to significant cost reductions and operational synergies.

• Focus remains on free cash flow generation and deleveraging, with growth initiatives and disciplined capital allocation supported by new policies and forestry partnerships.

Financial highlights

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

• Adjusted EBITDA: R$1.805 billion (+33% YoY); EBITDA margin: 36%, up 5 p.p. from Q3 2023.

• Total cash cost per ton: R$3,179 in Q3, up 4% year-over-year; 9M24 cash cost: R$3,091, down 6% year-over-year.

• Net debt: R$29.5 billion, up mainly due to the R$6.3 billion payment for Project Caetê.

• Dividend yield: 6% over the last 12 months, with R$1.4 billion paid.

Outlook and guidance

• Expectation of stable or slightly declining short fiber pulp prices in Q4, with potential stabilization thereafter.

• Fluff pulp prices may see a slight drop in Q4 but are expected to improve in 2025.

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

• Corrugated box market in Brazil remains strong, with growth expected to outpace GDP in 2025.

• Logistics bottlenecks persist, with gradual resolution expected.