Klabin: Klabin SA (KLBAY) Q3 2024 Earnings Call Highlights: Strong Revenue Growth Amid Logistical Challenges

In This Article: Release Date: November 05, 2024 For the complete transcript of the earnings call, please refer to the full earnings call transcript . Positive Points Negative Points Q & A Highlights Q : Can you discuss Klabin's capital allocation strategy and the potential for increasing fluff capacity given market needs? A : Cristiano Teixeira, CEO, explained that Klabin is focused on deleveraging and sees long fiber fluff as a strategic product for future investment. Despite market needs, the company will not change its two-year trajectory focused on reducing debt and generating cash before considering new investments. Q : What are the expectations for the corrugated box market in the fourth quarter and 2025? A : Douglas Dalmasi, Packaging Business Director, noted that the corrugated box market has been strong, driven by export sectors like proteins and fruits. Klabin expects continued growth slightly above GDP in 2025, with opportunities to pass on cost increases due to strong demand. Q : Is Klabin considering share buybacks or M&A activities as part of its growth strategy? A : Cristiano Teixeira, CEO, stated that while share buybacks are always under consideration, there are no current plans for mergers and acquisitions. The focus remains on deleveraging and optimizing existing operations. Q : How is Klabin addressing logistics issues affecting pulp and container board shipments? A : Roberto Bizon, Supply Chain Manager, highlighted ongoing global and domestic logistics challenges, including geopolitical issues and terminal capacity constraints. While there is slight improvement, significant bottlenecks remain, impacting shipment schedules. Q : What is the outlook for pulp prices, particularly in China and Europe? A : Marcos Ivo, CFO, indicated that pulp prices in China have stabilized, with signs of increased demand, particularly in the tissue segment. In Europe, price adjustments are ongoing, with expectations of reduced additional volumes starting in November. For the complete transcript of the earnings call, please refer to the full earnings call transcript . This article first appeared on GuruFocus .