Klabin (KLBN4) Q4 2024 earnings summary

Executive summary

• Net revenue for 2024 reached R$20 billion, up 9% year-over-year, with Q4 2024 revenue at R$5.3 billion, up 17% YoY, driven by higher sales volumes, favorable FX, and ramp-ups of new projects.

• Adjusted EBITDA for 2024 was R$7.3 billion (+17% YoY), with a margin of 37%, and Q4 2024 EBITDA was R$1.8 billion (+13% YoY).

• Net income for 2024 was R$2.05 billion, down 28% YoY, mainly due to higher financial expenses and FX impacts.

• Dividend yield for 2024 was 6.2%, with R$1.5 billion distributed to shareholders.

• Major investments included the Caetê Project acquisition and Figueira Project start-up, with a strategic focus on operational efficiency and sustainability.

Financial highlights

• 2024 net revenue: R$20 billion (+9% YoY); Adjusted EBITDA: R$7.3 billion (+17% YoY), margin 37% (+2pp YoY); Q4 2024 net revenue: R$5.3 billion (+17% YoY); Q4 2024 Adjusted EBITDA: R$1.8 billion (+13% YoY), margin 35%.

• Net income for 2024: R$2.05 billion (-28% YoY); Q4 2024 net income: R$543 million (+47% YoY).

• Sales volume (excluding wood) grew 6% to 3,870 thousand tons in 2024; Q4 2024 sales volume was 1,106 thousand tons.

• Total cash cost per ton in 2024: R$3,173, in line with projections.

• CAPEX for 2024: R$3.3 billion, 22% lower than 2023 and in line with guidance.

Outlook and guidance

• Focus for 2025–2026 is on deleveraging, operational efficiency, and disciplined investments, with no major expansion planned before 2027.

• 2025 cash cost per ton guidance: R$3,100–R$3,200, consistent with 2024.

• Positive price trends expected for pulp and paper; neutral for packaging; no general maintenance stoppage at Monte Alegre in 2025.

• Incremental EBITDA projection for 2027 remains unchanged.

• Project Plateau's first installment (~R$800 million) to be received in February 2025.