Klabin reports 47% growth in Adjusted EBITDA in 2018
Adjusted EBITDA in 4Q18 reached R$ 1,133 million, up 33% from the same period last year. Growth in 2018 compared to 2017 was 47%.
Net sales revenues in 4Q18 increased 21% versus 4Q17, driven by higher volume and improved price scenario.
Operating above its nominal capacity, the Puma Unit set a pulp production record of 416 thousand tons in 4Q18.
São Paulo, February 7, 2019 – Klabin, Brazil’s largest paper producer and exporter, the leading manufacturer of paper and board for packaging, corrugated board packaging and industrial bags, and the only company in Brazil to produce hardwood, softwood and fluff pulp in the same industrial unit, registered its 30th straight quarter of growth in its financial results (EBITDA in the last twelve months). The Company reported Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of R$1,133 million in the fourth quarter of 2018, which represents growth of 33% over the same period the previous year. In 2018, Adjusted EBITDA came to R$ 4,024 million, an increase of 47% from 2017.
Total sales (excluding wood) in 4Q18 stood at 861 thousand tons. Pulp sales by the Puma Unit, which has been operating at above its nominal capacity, reached 399 thousand tons, up 10% from 4Q17, and included 299 thousand tons of hardwood pulp and 100 thousand tons of softwood and fluff pulp. Another highlight is the company’s solid performance in the paper and packaging segment, marked by the 8% growth in kraftliner sales in the fourth quarter of 2018, driven strongly by domestic sales, which grew 25% in comparison with the fourth quarter of 2017. During the period, Klabin expanded its footprint and share in markets such as fruits in northeastern Brazil and in industrial bag exports.
Net revenue increased 21% in 4Q18 compared to the same period in 2017, reaching R$ 2,785 million. The Company highlights the 52% growth in pulp revenue, which stood at R$ 1,107 million, and the 39% growth in the kraftliner segment, which registered higher sales volume and better prices. In the annual comparison, Klabin registered 9% growth in net revenue from its paper business unit and 7% growth at the packaging unit.
Driven by improved results, dividends of R$ 75 million and interest on equity of R$ 265 million were paid in the fourth quarter. Moreover, dividends of R$ 145 million and interest on equity of R$ 125 million were approved for payment in February 2019.
“Klabin ended 2018 with financial results that are both sustainable and within the planned growth margins. Our flexibility in pursuing and adapting ourselves to more profitable markets, combined with the continuously strong performance by the Puma Unit, were some of the key driving factors during the period”, says Gustavo Sousa, Chief Financial and Investor Relations Officer of Klabin.
In 4Q18, Klabin invested R$280 million, of which R$76 million were allocated to forestry operations; R$164 million to ensure operational continuity of the industrial units; and R$ 40 million were invested in special projects and expansion, especially in high-yield projects designed to improve the company’s operational performance in its business segments. With this, Klabin’s investments in 2018 totaled R$ 956 million.