The largest manufacturer of paper for packaging in Brazil, had a net profit of R$ 790 million in the fourth quarter, in a performance above the expected by the market average and driven by product price increases that minimized the drop in volumes sold, in addition to the contribution of exchange variation on the debt.
The result for the last three months of last year, however, was 25% lower than that obtained in the fourth quarter of 2021 and 62% lower than the net profit for the third quarter of last year.
Analysts, on average, expected net income of 414.5 million reais for Klabin in the fourth quarter, according to data from Refinitiv.
The financial result, which is traditionally a relevant component in the results of exporting companies, was negative at R$ 31 million in the fourth quarter, compared to R$ 390 million also negative a year earlier.
The volume sold fell 5% in the annual comparison and 9% in the quarterly, to 928 thousand tons.
Net revenue grew 11% over the fourth quarter of 2021, to BRL 5.1 billion, but fell 7% in the quarterly comparison. The market expected revenues of around R$ 5 billion in the period.
According to the company, there was less demand in the bag segment, amid a retraction in cement consumption in Brazil.
In corrugated cardboard, there was an 8% drop in volume sold over a year earlier, “due to the reduction in the fruit harvest due to market problems, especially in Europe, and climate,” said the company.
Klabin cited even lower protein exports, a sector in which, along with fruit, the company “has a relevant share in the supply of corrugated cardboard”.
The company, which increased investments at the end of the year by 37% over the same period of the previous year while building the second paper machine at a factory in Paraná – a project known as Puma 2 – had cash generation measured by adjusted Ebitda of R$ 1.9 billion, virtually in line with the figure obtained a year earlier. Analysts had expected R$1.96 billion, according to Refinitiv.
Indebtedness in relation to Ebitda fell from 3 times at the end of 2021 to 2.7 times in the fourth quarter in reais. In dollars, leverage increased from 2.9 times to 2.6 times.
Klabin stated that the total cash cost rose 23% in the fourth quarter in the annual comparison, to R$ 3,399 per ton, already excluding maintenance costs with scheduled general stops.
Considering only cellulose, the company’s cash cost of production in the period was R$ 1,338 per ton, an annual increase of 25%.
“The main reasons for these increases are related to the sharp rise in commodity prices in the period, which impacted fuel and chemical input costs, especially caustic soda, as well as service and labor inflation and lower sales revenue. of energy due to the drop in the PLD”, stated Klabin in the balance sheet, adding that greater use of third-party fibers also weighed on the balance sheet.
Source: CNN Brasil
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