Klabin (KLBN11) has announced the distribution of R$ 54 million in dividends to its shareholders, following a decision made by the Board of Directors during their meeting held last Tuesday, February 25, 2025. The announced dividend translates to R$ 0.00888 per ordinary and preferred share and R$ 0.04441 per Unit. Shareholders holding shares until the close of trading on March 5, 2025, will be entitled to receive the dividends, with shares trading as "ex-dividends" from March 6, 2025. The payment is scheduled for March 14, 2025. For shareholders with shares at custodial institutions, payments will follow the procedures of their respective depositaries, whereas investors without custody will have credits available based on their registered banking domicile with Itaú Unibanco, responsible for managing Klabin's shares. Payments will be processed three business days after the correction of any outdated registration information at Itaú branches.
Klabin, Brazil's largest producer of packaging papers and corrugated cardboard, capped off 2024 with a remarkable 47% increase in net profit. The firm reported net income of R$ 543 million for the fourth quarter of 2024 (4T24), which is significantly higher than results from the same period last year. The company's revenue for the same quarter equated to R$ 5.3 billion, marking a 17% consolidated quarterly increase compared to Q4 2023. Throughout 2024, Klabin generated total net revenue of R$ 19.6 billion — up by 9%, primarily attributed to greater sales volume of kraftliner, paperboard, and packaging, alongside rising pulp prices and the strengthening of the dollar against the real.
On the earnings front, Klabin's EBITDA (earnings before interest, taxes, depreciation, and amortization) for the fourth quarter hit R$ 1.82 billion, reflecting an 8% increase from the previous year. The annual EBIDTA reached R$ 7.333 billion, up by 16% year-on-year. Analysts projected EBITDA at R$ 1.87 billion and revenue at R$ 4.98 billion for the quarter according to LSEG. During this period, Klabin's total cash cost stood at R$ 3,173 per ton, with total investments summing up to R$ 3.3 billion. The company distributed R$ 1.5 billion to shareholders this year, reflecting a dividend yield of 6.2%, adhering to its Dividend and Return on Equity Policy.
Explaining the market conditions, Klabin management shared insights about 2024, noting, "We started the year with improved conditions and significant price recovery across our main segments." This statement echoed their previous assertions concerning the revival of pricing dynamics impacting their product lines, which contributed to the overall revenue growth. The company noted, "The market for papers and packaging continued on its recovery path," demonstrating resilience amid challenging economic conditions. Despite the decrease in net income for the complete year (down to R$ 2 billion) compared to 2023, gains were noted during the last quarter, indicating potential stabilization and recovery efforts.
Throughout 2024, Klabin noted several operational adjustments, including scheduled maintenance shutdowns and fluctuations due to unplanned operational halts noted from previous quarters. For the fourth quarter, Klabin reported selling 1.016 million tons of products excluding wood, which is up 6% year-on-year. The annual total volume sold (excluding wood) was 3.870 million tons, also reflecting similar growth compared to 2023. Sales volumes of paperpapers reached 340,000 tons, with significant increases attributed to ramp-up effects from production capacities. Management highlighted, "These growth trends compensated for the maintenance shutdown impacts observed earlier."">
Both on operational and financial fronts, Klabin exhibited considerable cash generation capabilities, with operational cash flow increasing by R$ 373 million over this period alone.
Looking at financial health, Klabin reported gross indebtedness at R$ 40.8 billion as of December 31, 2024, marking R$ 3.8 billion increase from the previous quarter, driven mostly by currency variation affecting debts denominated in foreign currencies. Net debt, accounting for cash on hand, climbed to R$ 33.3 billion, with contingent statements concerning the financial leverage ratio, which stood at approximately 4.5 times against the EBITDA—a notable increase over the past year.
Finally, the company's commitment to addressing this leverage remains evident as Klabin has outlined its strategy to pursue de-leverage initiatives moving forward. This strategic approach, coupled with rising production levels and management's optimistic outlook on demand recovery, positions Klabin favorably within the market for 2025.