- Growth trend in adjusted EBITDA continues, which reached R$ 1.843 billion in 2Q22, excluding non-recurring effects, increasing 2% from the same period last year. Net revenue in April, May and June this year exceeded R$ 5 billion, up 24% from the second quarter in 2021, underscoring Klabin's successful integrated, diversified and flexible business model. Klabin recently announced a new phase in its expansion cycle - the Figueira Project - which involves the construction of a corrugated board packaging unit at Piracicaba, São Paulo, slated to go operational in the second quarter of 2024

São Paulo, July 27, 2022 - Klabin, Brazil’s largest producer and exporter of paper for packaging and sustainable solutions for paper packaging, besides offering hardwood pulp, softwood pulp and fluff to the market, has reported Adjusted EBITDA (Earnings Before Interest, Taxes,  Depreciation and Amortization) of R$1.843 billion in the second quarter of 2022, excluding non-recurring effects, an increase of 2% from the same period last year.

Excluding wood, sales volume in April, May and June 2022 surpassed 1 million tons, thanks to operational efficiency and flexibility, diversification of products and markets, and higher production by MP27, the first paper machine of the Puma II Project.  Growth in the period was 7% in relation to the second quarter of 2021.

Net revenue reached R$ 5.039 billion in the second quarter of this year, up 24% year on year,  driven by higher sales volume and consistent growth across all business lines, which offset the impact caused by the higher real vis-à-vis the dollar on exports during the period.

Cash generation once again benefited from higher EBITDA and diligent capital allocation, which helped maintain the Return on Invested Capital (ROIC) in the last 12 months at 18.6%.  Klabin thus underscores its successful integrated, diversified and flexible business model, which once again enabled it to combine growth and value generation for shareholders in different market scenarios.

Investments

In 2Q22, Klabin invested R$1.545 billion in its operations and expansion projects. Of the total investments, R$ 242 million went to forestry operations, R$ 185 million to working capital requirements at the mills and R$ 236 million to Special Projects and Expansions, especially for projects approved in 2021, the construction of the port terminal at the Port of Paranaguá and the expansion of the Horizonte unit in Ceará. In addition, R$ 118 million were invested in acquiring forests strategically located in Santa Catarina for future expansion.

In the Puma II Project, Klabin invested R$ 882 million in the second quarter, bringing total investments in the project to R$ 9.371 billion. Construction work on the second paper machine (MP27), which will focus on the paperboard market, had reached 47% during the measurement made on July 10.

Transparency in the ESG Agenda 

Recognized for its commitment to the 2030 Agenda, Klabin updated in June, its ESG Dashboard, which brings together key indicators on the Company's environmental, social and governance fronts, guaranteeing quick and simplified access to transparent information. The publication of the new data accompanies the 2021 Sustainability Report.

Figueira Project

In yet another important phase of its expansion plans, Klabin announced gross  investments of R$ 1.57 billion in July, including R$ 200 million in recoverable taxes, towards the construction of a mill in Piracicaba, São Paulo, with the capacity to produce 240,000 tons of corrugated board packaging a year.  With operational startup scheduled for the second quarter of 2024, the Unit will be the most modern in the segment in Brazil.

Financial Highlights

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