Klabin (KLBN4) Q4 2024 earnings summary

Executive summary

• Sales volume reached 1.1 million tons in Q4 2024 and 3.9 million tons for the year, with revenue of R$5.3 billion in Q4 (+17% YoY) and R$20 billion for 2024 (+9% YoY), driven by higher pulp and kraftliner prices, increased volumes, and BRL depreciation.

• Adjusted EBITDA reached R$1.8 billion in Q4 2024 and R$7.3 billion in 2024, up 17% year-over-year, with margins at 35% and 37% respectively.

• Strategic focus on a balanced product mix (fibers, papers, packaging), operational flexibility, and efficiency, supported by ramp-ups of PM27/PM28 and Caetê Project synergies.

• Strong cash generation and free cash flow, with dividend yield at 6.2% and R$1.5 billion distributed to shareholders in 2024.

• Sustainability milestones achieved, including continued inclusion in the Dow Jones Sustainability Indices and new SBTi-approved decarbonization targets.

Financial highlights

• Q4 2024 net revenue: R$5.3 billion (+17% YoY); adjusted EBITDA: R$1.8 billion (+13–17% YoY), margin 35–36%.

• 2024 net revenue: R$20 billion (+9% YoY); adjusted EBITDA: R$7.3 billion (+17% YoY), margin 37%.

• Total cash cost per ton in 2024: R$3,173, in line with projections; 2025 guidance: R$3,100–R$3,200/ton.

• Net debt at year-end: R$33.3 billion, leverage at 3.9x net debt/EBITDA (USD); average debt maturity: 87 months, cost in USD: 5.7% p.a.

• Free cash flow for 2024 was R$305 million, impacted by the R$6.4 billion Project Caetê payment.

Outlook and guidance

• Focus on deleveraging, operational efficiency, and disciplined investments, with no major expansion before 2027.

• Positive trends expected for pulp and fluff prices in Q2 2025, with neutral outlook for packaging.

• No general maintenance stoppage planned for 2025 at Monte Alegre, supporting operational continuity.

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