Klabin, Brazil’s largest packaging paper producer and exporter and leading manufacturer of corrugated board packaging and industrial bags, reported its 20th straight quarter of growth, with adjusted EBITDA (earnings before interest, tax, depreciation and amortization) in the second quarter of 2016 of R$538 million, or 37% higher than in the second quarter of 2015. Net revenue including wood sales amounted to R$1,699 million, advancing 27% on the prior-year period.

• Adjusted EBITDA amounted to R$538 million in the second quarter of 2016, an increase of 37% from the same period of 2015.
• Net sales revenue in the second quarter advanced 27% on the prior-year period to R$1,699 million.
• In March, Klabin successfully commissioned its Puma Unit in Ortigueira, Paraná. Pulp production continued to ramp up during the quarter, with sales corresponding to 50% of the mill’s nominal capacity.   

The second-quarter results benefitted from the commencement of pulp sales by the Puma Unit, which marked a new phase in the Company’s growth. The unit’s operations are ramping up within the established learning curve and contributed 181,000 tons to pulp sales volume in the period, with 165,000 tons of hardwood pulp and the remainder softwood pulp, generating revenue of R$286 million.

Klabin’s sales volume in the second quarter amounted to 631,000 tons (excluding wood), or 45% higher than in the same period last year. In addition to the additional pulp volume in the period, the Company registered 4% growth in sales of paper and packaging, which reached 450,000 tons. This growth was supported by the expansion in production capacity, the debottlenecking actions carried out in 2015 and the flexibility of its product mix, which allows production to be directed to various different markets.  

Export volume in the quarter corresponded to 50% of total sales volume, compared to 32% in the second quarter of 2015. The increase is explained by the growth in paper exports and, especially, by the start of pulp sales.

Capital Expenditure
Klabin invested R$649 million in the second quarter of year, with the highlight the investment of R$505 million in the new pulp mill in Ortigueira, Paraná. Capital expenditure to sustain the industrial operations came to R$99 million. Meanwhile, R$34 million was allocated to the forestry operations and R$11 million to special projects and capacity-expansion projects.

Financial Highlights

About Klabin

Klabin is Brazil's largest paper producer and exporter and the leading manufacturer of paper and board for packaging, corrugated board packaging, industrial bags and timber in logs. Founded in 1899, it has 15 industrial units in Brazil and one in Argentina. Klabin is organized into four business units: Forestry, Pulp, Paper (paperboard, kraft paper and recycled) and Packaging (corrugated board and industrial bags).
Management of the company is entirely oriented towards sustainable development, in the pursuit of integrated and responsible growth that combines profitability, social development and a commitment to the environment. Klabin has been included in the Corporate Sustainability Index (ISE) of the São Paulo Stock Exchange (BM&FBovespa) since 2014. It is also a signatory to the United Nations Global Compact and the Brazilian Pact to Eradicate Slave Labor, and seeks suppliers and business partners that adopt the same values of ethics, transparency and respect for the principles of sustainability.

Learn more at www.klabin.com.br