Press Offices Contacts

Fleishman HillardNational
Andrea Donadio
Tel.: (11) 3185 9934
Cel.: (11) 99686 5073
Célia Nogueira
+ 55 11 3185 9923
+55 11 98999 0069
Pauta 6 ComunicaçãoEspirito Santo and Bahia
Rogéria Gomes
+ 55 27 3235 6996
Performa ComunicaçãoInterior of São Paulo
Kamilla Barboza
+ 55 12 3939 2699
+ 55 12 99188 7437
Performa ComunicaçãoMato Grosso do Sul
Kamilla Barboza
+ 55 12 3939 2699
+ 55 12 99188 7437
Luciana Navarro
+ 55 67 9803 7092

Updated on 23.10.2015



  • Net revenue grew 60% in the third quarter from the same period in 2014, reaching R$2.8 billion.
  • Free cash flow generated in the last 12 months totaled R$2.3 billion, excluding dividends paid in May and capex on the Horizonte 2 Project.
  • Sales totaled 1.298 million tons and inventories declined to 53 days.
  • Net debt fell to US$2.4 billion and leverage in USD fell to 1.58 times, the lowest in Fibria’s history.
  • Release of Dividend Policy, approved yesterday by the Board of Directors.
  • Fibria proposes extraordinary dividend distribution of R$2 billion.


São Paulo, October 23, 2015 – Fibria, a Brazilian forestry company and the world’s leading eucalyptus pulp producer, closed the third quarter of 2015 with the best operational performance in its history, breaking records for EBITDA, EBITDA margin and free cash flow. This was the result of strict financial discipline and operating excellence, combined with strong global demand for pulp and the appreciation of the U.S. dollar.

In the quarter, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$1.55 billion, up 683% over the same period in 2014 and 127% over last quarter. EBITDA margin was the highest in Fibria’s history at 56%, a gain of six percentage points over the last quarter and 21 percentage points over the same period in 2014. Bolstered by the appreciation of the U.S. dollar against the Brazilian real, free cash flow generation excluding capex on the Horizonte 2 Project came to R$1.12 billion in the quarter, more than double than in the second quarter of 2015 and accounting for nearly 50% of free cash flow in the last 12 months – which came to R$2.297 billion before distribution of dividends in May and capex on the Horizonte 2 Project.

“We did our homework well and are now reaping the rewards. Our strong cash generation enables us to execute the Horizonte 2 Project, which involves expansion of the Três Lagoas (MS) unit, without compromising Fibria’s credit quality. At US$2.5 billion in investments and currently under construction, the project is one of the largest private investments underway in Brazil and is a milestone for competitiveness in the sector,” said Fibria CEO, Marcelo Castelli.

In the third quarter of 2015, Fibria’s net revenue was R$2.79 billion, up 60% from the same period in 2014 and 21% from the previous quarter. Eucalyptus pulp sales in the third quarter were driven by strong global demand, particularly in mature markets such as Europe and China, due to newly installed paper plants.  As such, the typical seasonal downturn in pulp demand in the third quarter – weaker months due to shutdowns by paper producers during summer vacation in the Northern Hemisphere – was practically nullified and Fibria sold 1.298 million tons, outpacing the previous quarter and reducing inventories to 53 days.

Yesterday, the meeting of the Board of Directors of Fibria approved its new Dividend Policy. In implementing the approved policy, the Company proposes the distribution of dividends of R$2 billion, subject to approval by shareholders at the Extraordinary Shareholders Meeting called for November 30. Factors behind the Company’s decision to submit this proposal include Fibria’s low leverage level, strong cash generation, a cash position above the minimum cash requirements, low average cost of debt and the fact that funding for the Horizonte 2 Project has already been settled. With this, Fibria demonstrates its commitment to capital discipline. If the proposal is approved, the dividends should be paid in December 2015.

“With this Dividend Policy, we signal to the market that Fibria’s management will base this dividend payment proposal on its capacity to generate cash while respecting its financial policies – particularly the Debt and Liquidity Policies – and upholding its commitment to remain Investment Grade, and also considering its strategic plans,” said Guilherme Cavalcanti, Chief Financial and Investor Relations Officer of Fibria.

Fibria ended September with net debt of US$2.411 billion, down 19% from the third quarter in 2014 and 9% from the balance at the end of June. This debt reduction, coupled with EBITDA growth, led Fibria’s leverage, as measured by the net debt/EBITDA ratio, to decline to 1.58 times in dollar terms – the lowest in the Company’s history.

Since Fibria is an exporter and since more than 90% of its debt is in U.S. dollar, any depreciation of the Brazilian real favors the Company’s financial conditions by increasing its free cash flow. However, it also has a non-cash accounting effect of increasing the balance of dollar debt when the same is translated into real. Thus, the appreciation of the dollar in the quarter had an accounting effect on Fibria’s net result, which ended the period with a book loss, with no cash effect, of R$601 million.

“Fibria is living one of the best operational and financial moments of its history. The net result of income or loss is an accounting portrait that does not adequately reflect the Company’s capacity to generate value for shareholders, as measured by free cash flow. When the exchange rate stabilizes, the effect of exchange variation will cease to exist in the Company’s books and the Company will begin to report a net result that better reflects its economic and financial performance. Excluding the effects of exchange variation, Fibria’s net result in the quarter would have been an income of R$873 million,” Mr. Cavalcanti explained.

Follow the highlights of Fibria’s third quarter results on social media using #FIBR3_3T15.


About Fibria

A world leader in eucalyptus pulp production, Fibria is a company that strives to meet the growing global demand for forestry products in a sustainable manner. With annual pulp production capacity of 5.3 million tons, the company has industrial units in the cities of Aracruz (Espírito Santo), Jacareí (São Paulo) and Três Lagoas (Mato Grosso do Sul), and in Eunápolis (Bahia), where it operates the Veracel plant through a joint-operation with Stora Enso. In May 2015, Fibria announced the expansion of its Três Lagoas unit in Mato Grosso do Sul, which will receive a new line with the capacity to produce 1.75 million tons of pulp per year. The new line, which will receive investment of US$2.5 billion, is slated to start operations in the fourth quarter of 2017. Fibria has 967,000 hectares of forests, with 563,000 hectares of planted forests and 343,000 hectares of environmental preservation and conservation areas. The pulp manufactured by Fibria is exported to more than 40 countries.


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