Message from the Chief Executive Officer
The year 2024 was especially significant for Klabin, as it celebrated its 125th anniversary. The Company has built a legacy of growth, sustainability and resilience, establishing itself as a global leader in the pulp and paper sector. As a forest-based company, we know well what it means to plant and harvest. I would therefore like to use this analogy here in a broader sense to explain Klabin’s recent trajectory.
The year marked the beginning of a period of reaping the results from the major investments we have made. At the Ortigueira Unit (PR), we followed the ramp-up of Paper Machines 27 and 28; at the Piracicaba II Unit (Figueira Project), in São Paulo, the start of operations with cutting-edge, low-conversion-cost technology brought strong expectations for efficiency gains; at the Horizonte Unit (CE), we completed the expansion project with the start-up of a new printer, increasing our capacity to serve customers. In addition, we successfully incorporated Arauco’s forest assets in Paraná (Caetê Project). All these investments are evidence of sound decision-making that has placed us in a more competitive market position.
The year presented varying business conditions, which tested and ultimately strengthened Klabin's adaptability, flexibility and highlighted our commitment to delivering strong results. The international pulp market heated up in the first half of 2024 before prices fell back in the final months of the year. Internally, the Company optimized its revenue management and margins, aided by its diversified sales mix and geographic sales flexibility. Meanwhile, the paper packaging market recovered. For example, the paperboard segment remained resilient due to Klabin’s exposure to essential sectors such as fresh and processed foods, as well as hygiene and cleaning products. Paperboard sales grew 16% year-on-year, while net revenue rose 14%.
In containerboard, sustained demand throughout the year allowed us to increase our export volume by 44% and net revenue by 30%, compared to 2023. Corrugated cardboard shipments grew by 6.3% in terms of volume, outperforming the sector as a whole, which expanded by 5.3%, according to the Brazilian Paper Packaging Association (Empapel). Net revenue increased by 4% year-over-year, due to robust consumption. Sales volume and net revenue for industrial bags were in line with the figures achieved in 2023. Demand from the cement industry and expansion in foreign markets, especially in the last quarter of the year, were highlights in this area.
Looking at our results as a whole, 2024 was a strong year. Our sales volume increased 6% from 2023, while net revenue grew 9%. At the same time, our total cash cost per metric ton declined 1% compared to 2023, contributing to solid cash generation.
Adjusted EBITDA, excluding non-recurring effects, was R$7.3 billion in the year, while our EBITDA margin was 37%, up 2 percentage points from 2023. Over the course of 2024, R$1.5 billion was distributed in cash dividends, corresponding to a dividend yield of 6.2%.
Looking to the future, in 2024 we approved and launched the Monte Alegre Plant Modernization Project, which will replace the site’s ecovery oiler 1 with a new one, to ensure the operating site’s continuity by enhancing its efficiency, competitiveness and sustainability. We also announced the Plateau Project, which involves entering into agreements with a Timber Investment Management Organization (TIMO) to undertake forestry activities, thus accelerating the monetization of surplus land from the Caetê Project. The Plateau Project reflects Klabin’s commitment to disciplined capital allocation, reduction in leverage and optimization of return on invested capital (ROIC), generating value for all stakeholders.
In the area of sustainability, we made some important advances. Attaining our highest ever ratings, we remained in the Dow Jones Best-in-Class World Index and rejoined the Dow Jones Best-in-Class Emerging Markets Index (formerly the DJSI – Dow Jones Sustainability Index). These indices feature world-class companies in terms of financial, governance, social and environmental performance. We obtained approval from the Science Based Targets initiative (SBTi) for new greenhouse gas emission reduction targets for Scopes 1, 2 and 3, in line with the global temperature increase scenario of up to 1.5°C by 2030, as well as a net-zero target.
We published our Climate Transition Plan and Biodiversity Conservation and Ecosystem Services Plan, aligned with the formats of the Task Force on Climate-Related Financial Disclosures (TCFD) and Task Force on Nature-Related Financial Disclosures (TNFD). Our commitment to this subject gained even more strength and engagement as we formally linked the performance-based pay of directors, managers, coordinators and specialists to achievement of our annual targets regarding climate, water, diversity, communities and safety.
In 2024, we saw progress in relation to the Klabin 2030 Agenda’s targets for water use, greenhouse gas emissions and partnerships with the value chain to promote the circular economy.
In 2025, we plan a comprehensive evaluation of the Klabin Sustainable Development Goals, to take stock of progress and make possible adjustments, focusing on more ambitious results in relation to the market. All this work reflects Klabin’s commitments as a signatory to the UN Global Compact Brazilian Network.
For the third year running, Klabin is exceeding its target for its community perceptions survey, achieving an 83.6% acceptance rate in the Company’s areas of operation, in 2024. The daily strengthening of these relationships and the Company’s social and environmental actions have played a key role in local development.
The year 2024 was also notable for the evolution of our culture. We solidified our Vision and Mission and reviewed the Klabin Attitude – a set of core values and skills required to do business with us. This move was important to connect the behaviors and principles already practiced with our business strategy and delivery of solid results. These new skills have already been incorporated into employees’ performance evaluation in 2025, reinforcing their importance.
As we reflect on the year’s challenges and achievements, Klabin wishes to thank its employees, board members, investors and other partners for making 2024 a memorable year, worthy of its 125-year history. Their dedication and trust reflect Klabin’s enduring innovative spirit, which always seeks the best for its customers, its professionals and the planet. We envision that our harvest of sustained results will continue in 2025, as we remain focused on operational efficiency, financial discipline and creation of value for all our stakeholders.
Cristiano Teixeira
Chief Executive Officer, Klabin
