Klabin: Klabin SA (KLBAY) Q4 2024 Earnings Call Highlights: Strong Revenue Growth Amid Strategic ...

In This Article: Release Date: February 27, 2025 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 elaborate on Klabin's strategic view regarding capital allocation and potential M&A activities? A : Cristiano Cardoso Teixeira, CEO, emphasized that the priority is deleveraging, focusing on reducing the company's leverage over the next 18 to 24 months. While M&A is always considered, the current focus is on paying off debt rather than pursuing acquisitions or share buybacks. The company is also concentrating on cost improvements and efficiency gains, particularly through the CATIE project. Q : What is Klabin's approach to managing costs, especially in pulp, paper, and packaging? A : Cristiano Cardoso Teixeira, CEO, highlighted that the company is focusing on reducing cash costs through the CATIE project, which has already shown significant improvements. The ramp-up of Paper Machine 28 and other projects will help dilute fixed costs. Klabin is committed to maintaining efficiency gains in G&A and improving cash generation. Q : How does Klabin view the current pulp market, especially with the impact of a major Chinese player exiting the market? A : Alexandre Nicolini, Pulp Commercial Director, noted that the exit of a large Chinese player has reduced pulp supply, contributing to price increases. The market remains uncertain, but Klabin expects further price improvements, particularly after the Shanghai Pulp Week. Q : With Klabin's focus on deleveraging, when can we expect new investment announcements? A : Cristiano Cardoso Teixeira, CEO, stated that no new investments will be announced in 2025 or 2026. The focus will remain on efficiency and deleveraging. Any potential investment discussions will occur in 2027, with a strong emphasis on maintaining financial discipline. Q : How does Klabin plan to handle potential macroeconomic changes in Brazil, particularly in the paper and packaging sectors? A : Cristiano Cardoso Teixeira, CEO, explained that Klabin is well-positioned to adapt to macroeconomic changes due to its diversified product mix and flexibility. The company can shift production between coated boards and kraft paper, catering to both domestic and export markets. Klabin's strategic investments have prepared it to handle fluctuations in the Brazilian economy. For the complete transcript of the earnings call, please refer to the full earnings call transcript . This article first appeared on GuruFocus .