Q2 2024 Klabin SA Earnings Call Transcript
Key Points
- Klabin SA (KLBAY) reported a 15% year-on-year increase in net revenue for the second quarter of 2024, reaching BRL4.9 billion, driven by higher sales volume and favorable exchange rates.
- The company's adjusted EBITDA improved significantly, reaching BRL2,052 million with a margin of 41%, marking a 10-percentage-point increase compared to the same period in 2023.
- Klabin SA (KLBAY) successfully ramped up its coated board machine, which is more profitable than its kraft liner machine, contributing to increased margins.
- The company maintained robust liquidity, ending the quarter with BRL15.7 billion, including BRL13 billion in cash, ensuring financial stability.
- Klabin SA (KLBAY) announced the payment of dividends amounting to BRL410 million, reflecting a dividend yield of 5.7% over the last 12 months.
- Klabin SA (KLBAY) faced logistical challenges, particularly with container exports, which impacted production and could have resulted in an additional 30,000 tons of output.
- The company's net debt increased by approximately BRL2.4 billion compared to the previous quarter, largely due to currency effects, raising concerns about leverage.
- There is a market perception of concern regarding China's consumption, which could negatively impact short fiber pulp volumes in the third quarter.
- The general stoppage in production facilities led to a slight decrease in volume for fluff and coated boards, affecting overall output.
- Klabin SA (KLBAY) experienced a negative impact on its bottom line due to variations in the valuation of biological assets, although this was attributed to natural oscillations.
Good morning and welcome to Klabin's conference call. (Operator Instructions) As a reminder, this conference call is being recorded and is also being transmitted simultaneously via webcast that can be accessed through Klabin's investor relations website where the presentation is also available.
Any statements eventually made during this conference call in connection with Klabin's business outlook, projections, operating, and financial targets, and potential growth, should be understood as merely forecasts based on the company's management expectations in relation to the future of Klabin.
Such expectations are highly dependent on market conditions on Brazil's overall economic performance and on the industry and international market behavior and therefore are subject to changes.
Here with us today are Mr. Cristiano Teixeira, CEO; Marcos Ivo, CFO and IRO, and the company's officers. Initially, Mr. Cristiano and Mr. Ivo will comment on the company's performance during the second quarter of 2024. After that, the officers will be available to answer any questions that you may wish to
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