Irani Papel e Embalagem S.A. (RANI3), one of Brazil's leading sustainable paper and packaging industries, has announced its financial results for 2024, marking notable growth amid challenging market conditions. The company reported a net revenue of R$ 1.6 billion for the year, reflecting a 2.1% increase compared to the previous year. The standout performance for the fourth quarter was even more impressive, with net revenue reaching R$ 424 million, up 10.1% from the third quarter of 2024, primarily due to improved pricing strategies and increased demand for its sustainable packaging and paper products.
One of the highlights for the year was the 5.7% rise in sales volume of corrugated cardboard, with the company outperforming market trends. This growth was fueled by a stronger overall market and the ramp-up of production capabilities stemming from the Gaia II Project, aimed at enhancing efficiency and sustainability.
Adjusted EBITDA for the fourth quarter stood at R$ 115.4 million, achieving a margin of 27.2%, which reflects a slight decline from the previous year’s margin of 29.1%. The annual EBITDA recorded was R$ 475.7 million with a margin of 29.2%, showing a decrease of 3% from 2023. Odivan Cargnin, the Director of Administration, Finance, and Investor Relations at Irani, stated, "Even with the strong increase in scrap prices, Irani maintained stability in EBITDA and margins, mainly due to capturing returns on investments made under the Gaia platform."
The rise in scrap prices—Irani's main raw material—was significant, with costs climbing by 73.1% compared to Q4 2023 and 28.2% year-over-year, largely attributed to climatic events affecting supply in the Rio Grande do Sul region. Notably, the net income for the fourth quarter was R$ 186.2 million, contributing to an annual profit of R$ 304.5 million. This quarterly net income was bolstered by the recognition of tax credit amounting to R$ 168.2 million related to the exclusion of presumed ICMS credits from the IRPJ and CSLL bases.
When evaluated on a recurring basis, net income for 2024 totaled R$ 136.3 million, dropping from R$ 247 million the prior year. This fluctuation emphasizes the effectiveness of financial strategies and market adaptability under fluctuated raw material costs.
Iran's commitment to enhancing shareholder value was evident through its third buyback program initiated within 2024. By December 31, 2024, the company repurchased 6,300,800 shares at an average price of R$ 7.80 per share, amassing over 20 million shares repurchased since 2021, equaling about 8% of its total stock. This strategy is aimed at reinforcing long-term shareholder value.
Significantly, for the first time, Irani was included in the B3’s Carbon Efficient Index (ICO2 B3), underscoring its dedication to sustainable practices. The company also earned recognition as the 32nd best company to work for in Brazil and placed fourth among industries, according to the GPTW ranking, which reflects its commitment to workplace culture.
Founded in 1941 and controlled by the Habitasul Group since 1994, Irani Papel e Embalagem produces high-quality materials like corrugated cardboard, packaging papers, and natural pine resins. Aligned with circular economy principles, it operates production integrated with its own forests and utilizes self-generated energy. The company's facilities are located across various regions, including Vargem Bonita (SC), Santa Luzia (MG), Indaiatuba (SP), and Balneário Pinhal (RS), employing over 2,300 individuals.
The financial results of Irani, demonstrating resilience and strategic growth, position the company well for future opportunities, as it continues to lead the sustainable packaging sector within Brazil.