Klabin’s net revenues grew 26% in 3Q 2018 in comparison to the same period of 2017, reaching R$2,807 million ($780 million). The growth is a reflection of higher pulp sales volumes, good price momentum in international markets, in addition to the devaluation of the Real in relation to the US dollar during the period and enhanced by Klabin’s flexibility in switching sales to markets where returns are better.
Tthe year-on-year 72% and 39% increases in revenues from the pulp and Kraftliner markets, respectively. In addition to improvements in prices and to higher volumes, these markets were direct beneficiaries of the local currency’s devaluation. In this context, export revenue increased by 45%.
Higher sales volume and continued price increases in all of Klabin’s markets generated a 26% net revenue increase this quarter in relation to 3Q 2017. This fact, combined with the Company’s efforts to control costs contributed to the increase in operational cash generation (adjusted EBITDA), this reporting R$ 1,248 million ($7347 million) in 3Q 2018, 66% higher than in the same period of the previous year. As a result, the Company was able to register an important increase in EBITDA margin at 44% versus 34% in the 3Q 2017.
Klabin is the largest integrated producer, exporter and packaging paper recycler in Brazil. The Company has a capacity to produce 3.5 million tonnes of products annually.
