PaperAge Magazine

Klabin's Second Quarter 2017 Results Up on Strong Performance by "Puma" Unit

Klabin - Puma Unit - pulp Klabin noted the strong performance of the Puma Unit which, after the annual maintenance shutdown at the end of March this year, concluded the ramp-up process and recorded pulp sales volume of 337,000 tons in 2Q17, 12% higher than in 1Q17.

August 1, 2017 (Press Release) - 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 plant, registered its 24th consecutive quarter of growth in financial results. The company recorded adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$595 million in the second quarter of 2017, which is 11% higher than in the same period in 2016.

In the second quarter of the year, the company highlights in its balance sheet the strong and sustained performance of the Puma Unit which, after the annual maintenance shutdown at the end of March this year, concluded the ramp-up process and recorded pulp sales volume of 337,000 tons in 2Q17, 12% higher than in 1Q17. Of the total sales volume in the second quarter of this year, 252,000 tons were hardwood pulp and 85,000 tons were softwood and fluff pulp.

The strong performance of the Puma Unit drove Klabin's total sales volume in the second quarter of 2017 which, together with the solid performance by the paper and conversion units, reached 777,000 tons (excluding wood), up 23% from 2Q16. Net sales revenue totaled R$1,984 million in the second quarter of 2017, increasing 17% from the same period last year.

Another highlight is the increase in sales volume of conversion products, in which Klabin registered growth of 8% in the second quarter of 2017 compared to the same period last year. In the half yearly comparison, the increase was 10% this year compared to last year. This growth was due to acquisitions in the corrugated board market at the end of 2016 (Embalplan and Hevi Embalagens) and demonstrates Klabin's adaptability and competitiveness in diverse markets and adverse scenarios.

Investments

Klabin invested R$209 million in the second quarter of 2017, of which R$43 million went to the Puma Unit, R$64 million to forest operations, R$87 million to working capital of plants and R$15 million in high-return projects aimed at improving the company's performance in all of 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