PaperAge Magazine

Klabin Reports Increases in Sales, Revenues in First Quarter 2016

Klabin - packaging paper on reel Klabin reported 4% growth in sales volume — which totaled 455,000 tonnes excluding wood — in the first quarter of 2016 compared to the same period in 2015.

April 29, 2016 (Press Release) - Klabin, Brazil's largest packaging paper producer and exporter, and the leading manufacturer of corrugated board packaging and industrial bags, [on April 28] reported its 19th quarter of continuous growth in results, with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 512 million, 11% higher than in the first quarter of last year. Net revenue in the quarter grew 12% from the same period in 2015 to reach R$ 1.4 billion.

First Quarter 2016 Highlights

  • Net revenue of R$1,463 million, up 12% over 2015, even with the deterioration of markets in Brazil.
  • Total sales of 455 thousand tons, 4% increase in the quarter, highlighting the growth of 13% in exports and the sales stability in Brazil even in a challenging scenario, showing Klabin's agility in positioning itself in different market scenarios.
  • In the 19th consecutive quarter of uninterrupted growth, the Adjusted EBITDA totaled R$512 million for the quarter, up 11% over the same period in 2015, without yet including the pulp sales from the Puma Project. The EBITDA Margin was 35%.
  • 1Q16 investments totaled R$853 million, with R$734 million directed towards the new pulp plant.
  • The new pulp plant in Ortigueira (PR), the Puma Unit, launched operations on time and on budget, and on March 4, 2016, produced the first bleached pulp bales, marking a new phase in the Company's existence.

The flexibility and global competitiveness of Klabin's product line, coupled with the recent increases in the Company's production capacity, drove the 4% growth in sales volume — which totaled 455 thousand tonnes excluding wood — in the first quarter of 2016 compared to the same period in 2015.

Domestic sales remained stable in the first quarter of 2016 compared to the same period in 2015, totaling 291 thousand tonnes. Exports totaled 164 thousand tonnes in the period, growing 13% from the first quarter of 2015. Exports accounted for 36% of total sales volume in the quarter, compared to 33% in the same period last year.

Capital Expenditure

Klabin invested R$ 853 million in the first quarter of 2016, with R$ 80 million spent on maintenance of plant operations, R$ 25 million on forest operations, R$ 14 million on special projects and capacity expansion, and R$ 734 million on the Puma Unit.

Puma Unit

Klabin's new pulp plant, the Puma Unit located in Ortigueira, Paraná, started pulp production in March 2016, firmly on schedule. With the plant's startup, the Company begins a new phase in its history, advancing into other markets and becoming the only Brazilian company to simultaneously supply bleached hardwood, softwood and fluff pulp produced in a plant designed entirely for this purpose.

The Puma Unit has a pulp production capacity of 1.5 million tonnes, which include 1.1 million tonnes of bleached hardwood pulp (eucalyptus) and 400 thousand tonnes of bleached softwood pulp (pine), a portion of which is converted into fluff pulp.

Klabin is a leading manufacturer of paper and board for packaging, corrugated board packaging, industrial sacks in Brazil. The company has 15 industrial units in Brazil and one in Argentina. To learn more, please visit: https://www.klabin.com.br/.

SOURCE: Klabin