Q2 2024 Empresas CMPC SA Earnings Call Transcript
Key Points
- Empresas CMPC SA (XSGO:CMPC) reported a 30% quarter-over-quarter increase in EBITDA, driven by higher average sales prices and lower cash costs.
- The Pulp business achieved an EBITDA margin of 33.5%, with a significant 61% year-over-year increase in EBITDA.
- Operating costs decreased by 3% quarter-over-quarter and 14% year-over-year, indicating improved cost management.
- The company has made progress in reducing its net debt-to-EBITDA ratio from 4.03 times to 3.75 times, with expectations for further improvement.
- Empresas CMPC SA (XSGO:CMPC) has been conservative in capital expenditures, preparing its balance sheet for future projects like the Natureza Project.
- Net income decreased to $125 million from $209 million in the previous quarter, indicating a decline in profitability.
- Softys business experienced a 20% quarter-over-quarter decrease in EBITDA, affected by rising pulp prices and currency depreciation in key markets.
- Biopackaging saw a 27% quarter-over-quarter decline in EBITDA, attributed to reduced sales and higher raw material costs.
- Pulp sales volume decreased by 10% quarter-over-quarter and 21% year-over-year, impacted by logistical issues and weaker demand in some markets.
- The company's net debt remains high at $4.761 billion, with a net debt-to-EBITDA ratio still above its internal policy range.
Hello, everyone, and welcome to Empresas CMPC second-quarter 2024 earnings webinar. I am Fernando Hasenberg, CFO of the company. And joining me today, we have Francisco Ruiz-Tagle, CEO of CMPC; Raimundo Varela, CEO of CMPC Pulp; Guilherme Viesi, Commercial Director at CMPC Pulp; and Claudia Cavada, our Investor Relations Officer.
Please note that the statements made today during the presentation and Q&A may include forward-looking statements to assist you in understanding our expectations for future performance. These statements are subject to some risks and could cause actual results and events differ materially.
For the second quarter of 2024, sales were $1.888 billion, EBITDA was $377 million and net income was $125 million. The Pulp business generated an EBITDA of $251 million with an EBITDA margin of 33.5%. EBITDA increased 30% quarter-over-quarter, which is explained by a higher average sales price and lower cash costs.
Softys business show an EBITDA of $132 million with an
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