Unipar Carbocloro (UNIP6) Q1 2025 earnings summary

Executive summary

• Achieved adjusted EBITDA of R$355 million, up 53% year-over-year, with a margin of 26% versus 20% last year, and net income of R$150 million, up 168% year-over-year.

• Maintained 20 consecutive quarters of positive net results and continued dividend payouts and share buybacks.

• Cash position reached R$1.5 billion, covering 36 months of debt principal amortization.

• Faced challenges from a low petrochemical cycle, severe weather in Argentina, and high PVC imports in Brazil.

• Operations were impacted by severe rainfall in Bahía Blanca, Argentina, causing an 8-day plant shutdown and supply chain disruptions.

Financial highlights

• Operating cash generation was R$156 million, up from R$25 million year-over-year.

• Adjusted net revenue in Brazil was R$1,363 million and in Argentina R$298 million for 1Q25.

• Maintenance CapEx for the quarter was R$23 million.

• Adjusted COGS was R$900 million, up 19% year-over-year due to higher raw material costs.

• Adjusted general and administrative expenses fell 39% from 4Q24.

Outlook and guidance

• Expect continued pressure on soda and PVC prices due to the prolonged low petrochemical cycle and global trade tensions.

• Projected self-produced energy in Brazil to reach 80% by year-end after Cubatão modernization; self-generation reached 64% in March 2025.

• SG&A reductions expected to be sustained, barring unforeseen circumstances.

• Technological modernization in Cubatão is progressing on schedule, with operations expected to start by end of 2025.

• Strategic CAPEX cycle continues, aligned with ESG best practices.