Klabin Reports Strong First Quarter 2017 Results
(Brazil, May 01, 2017) Klabin, Brazil’s largest paper producer and exporter, on April 27 reported financial results for the first quarter of 2017. The company recorded Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 539 million in the first quarter of 2017, an increase of 5% compared to the same period in 2016.
Total sales volume came to 759,000 tonnes (excluding wood) in the first quarter of this year, an increase of 67% from the same quarter last year, driven mainly by sales of pulp produced by the Puma Unit and by conversion products.
Net sales revenue totalled R$1,867 million in 1Q17, up 28% from the same period in 2016. The recent acquisitions in the corrugated board market — Embalplan (Rio Negro – PR) and Hevi Embalagens (Manaus – AM) — combined with the flexibility of Klabin’s product line and the consistent growth in industrial bag exports, as reflected in the sales of conversion products, which increased 13% from the first quarter of 2016 to reach 186,000 tonnes.
Sales volume of pulp produced by the Puma Unit in the first quarter of the year remained stable in comparison with the fourth quarter of 2016. Despite the first maintenance shutdown in March 2017, Klabin registered pulp sales of 301,000 tonnes in 1Q17, which included 225,000 tonnes of hardwood pulp and 76,000 tonnes of softwood and fluff pulp. In the first two months of the year, the Unit significantly progressed in its learning curve by registering production at over 90% of its nominal capacity. After this maintenance shutdown, the plant is prepared to reach 100% capacity utilization, further reducing pulp production costs.
Klabin invested R$251 million in 1Q17, with R$99 million going to the Puma Unit, R$43 million to forest operations, R$90 million to operational continuity of plants and R$19 million to special projects and expansion, all aimed at improving the company’s performance across its operating segments.
Klabin is Brazil’s largest paper producer and exporter, and the leading manufacturer of paper and board for packaging, corrugated board packaging and industrial bags. Founded in 1899, it has 17 industrial units in Brazil and one in Argentina. Klabin is organized into four business units: Forestry, Pulp (hardwood, softwood and fluff pulp), Paper (paperboard, kraft paper and recycled) and Packaging (corrugated board and industrial bags). To learn more, please visit: www.klabin.com.br (Source: Klabin)