You and Fibria
Subscribe to our monthly newsletter
Press Offices Contacts
- FSB ComunicaçõesNational
- Paula Barcellos
- Phone.:
+ 55 11 3165 9589 - Carolina Botelho
- Phone.:
+ 55 11 3165-9776 - Erica Benute
- Phone.:
+ 55 11 3165 9687 - Pauta 6 ComunicaçãoEspirito Santo and Bahia
- Rogéria Gomes
- Phone.:
+ 55 27 3235 6996 - ComunicasulRio Grande do Sul
- Néia Olivèirà
- Phone.:
+ 55 51 3024 5289 - Performa ComunicaçãoInterior of São Paulo
- Kamilla Barboza
- Phone.:
+ 55 12 3939 2699
+ 55 12 9710 3194 - Fernanda Turco
- Phone.:
+ 55 12 3939 2699
+ 55 12 8158 4205 - Mariana Strabon Zendron
- Phone.:
+ 55 12 3939 2699
+ 55 12 9709 6341 - Contexto MídiaMato Grosso do Sul
- Luciane Mamoré
- Phone.:
+55 67 3325 4113 - Renato Lima
- Phone.:
+55 67 3325 4113
+55 67 9245 7574
Media | News
05.17.10 - Fibria debuts on the Novo Mercado and closes the first quarter of 2010 with EBITDA of R$ 637 million, 69% higher than that of the same period of 2009
Pulp production reaches 1.3 million tons, 27% more than in the same period of last year.
Liability management and the increase in pulp prices brought about a reduction in the net debt/EBITDA ratio to 5.6, from 7.8 at the end of the 1Q09.
São Paulo – On May 20th, Fibria will make its debut on the BM&FBovespa Novo Mercado, a special listing segment for companies demonstrating the highest standards of Corporate Governance. The positive outlook is also reflected in the company’s EBITDA for the first quarter of 2010, which came to R$ 637 million, an increase of 69% over that of the same period of the previous year. The EBITDA margin was up 12 percentage points, from 26% to 38%. The increased sales volume, higher pulp prices and reduction in the cost of goods sold (COGS) contributed to these results. Meanwhile, the company’s net debt ratio declined by 31% when compared to that at the end of the 1Q09.
Pulp production in the first quarter of 2010 amounted to 1.3 million tons, 27% more than in the same period of 2009. Operations at full capacity at the Três Lagoas Unit (MS) and the record production level at the Aracruz Unit (ES), in March, were the main reasons underlying this growth, more than offsetting the impact of the sale of the Guaíba Unit (RS), in December 2009. Fibria’s pulp sales in the first quarter also came to 1.3 million tons, 14% higher than those of the same quarter of last year, stimulated by strong demand from the European and Latin American markets.
Fibria’s inventories remain at low levels, closing the first quarter of 2010 at 35 days of production – 11 days fewer that at the end of the same period of 2009. The price increases announced in January, February and March this year raised the net average pulp price, in dollars, by 10%. The 2% decrease in the value of the real help to raise the net average price in reais by 14%, in relation to that at the end of the 4Q09, while the increase was 11% in comparison with the net average price at the end of the 1Q09. Fibria’s net operating revenue for the 1Q10 totaled R$ 1,675 million, 17% higher than the figure for the 1Q09.
Market - The scenario for the first quarter of 2010 was for the continuing recovery of the global economy, with a gradual picking up of activity in places such as the United States, Europe and Japan. Emerging economies, such as that of Brazil, were already showing consistent signs of economic expansion. The first three months of the year clearly demonstrated this upturn, with a 7% increase in pulp shipments worldwide, compared to the 1Q09. Another very important factor was the earthquake in Chile, in the end of February, which worsened the already tight supply side situation. As a result, the pulp price per ton rose by US$ 90 during the first quarter of 2010.
Debt - Fibria continues to implement its strategy of reducing the balance and cost of its debt. At the end of March 2010, the company’s gross debt was at R$ 13.54 billion, down 8% in relation to the balance at the end of the previous quarter. The net debt is at R$ 10.86 billion: a reduction of 31% in relation to the figure at the end of the same period of last year and up by 2% in comparison with the 4Q09, mainly due to the depreciation of the Real and the effects of the accrual of interests, partially offset by the operational cash flow generation.
Fibria also carried out a new 10-year bond issue (Fibria II), of US$ 750 million. The aim of this issue is to settle all the remaining derivative debt and to refinance other debt in order to improve the company’s debt profile, remove the derivative related covenants and prepare the company for growth.
Synergies - The capturing of synergies is a goal that has been absorbed into the daily activities of all areas at Fibria. Over 120 measures were adopted in 2009, about 65% of which are already generating gains for the company. Highlights include negotiations with the industrial and forestry suppliers, which led to price reductions, economies of scale and supply chain optimization. Another source of synergies was the measures taken to optimize the administrative processes. As a result, the gains in 2009 from synergies generated a net present value of close to R$ 500 million. In the first quarter of 2010, over 155 measures were implemented, equivalent to 85% of the planned action for the capturing of synergies during the whole of 2010.
Joining the Novo Mercado - As of May 20th, Fibria will be listed on the BM&FBovespa Novo Mercado, which is a special listing segment for companies demonstrating the highest standards of Corporate Governance. Foremost among the voluntary capital market commitments undertaken is to only issue common shares, thereby ensuring that every share confers the right to one vote. In the opinion of Fibria’s CEO, Mr. Carlos Aguiar, “this is an important step that demonstrates the company’s transparency and commitment to good corporate governance, and this will surely attract new investors”.
Paper - In the paper segment, production in the 1Q10 amounted to 77,000 tons, a drop of 19% in relation to the figure for the same period of the previous year, mainly due to the sale of the Guaíba Unit. Paper sales in the 1Q10, at 83,000 tons, were 12% lower than those of the 1Q09. However, specialty paper sales increased by 36%, compared to the figure for the 1Q09, accounting for 50% of paper revenue. This reflects Fibria’s strategy of focusing its participation in the paper business on the higher value added segments.
Revenue and EBITDA - Fibria's net operating revenue for the 1Q10 amounted to R$ 1,675 million, 1% less than in the previous quarter but 17% higher than that of the 1Q09. The net revenue from pulp sales in the 1Q10 came to R$ 1,435 million, compared to R$ 1,395 million in the previous quarter. Despite the 9% decline in sales volume, the net revenue was up by 3%, due to the increase in the net average price and the 4% depreciation of the real. In comparison with the 1Q09, the net revenue from pulp sales was up by 26%, as a result of the greater volume sold (+14%) and the increase in the net average price in reais (+11%).
The adjusted EBITDA for the 1Q10 came to R$ 637 million, with a margin of 38%, compared to R$ 503 million (margin of 30%) in the 4Q09. The main factors underlying this increase were the higher net average price (R$ 119 million net effect) and the lower cost of goods sold (R$ 162 million), even though the sales volume was lower (R$ 191 million).
The financial income for the 1Q10 showed a net expense of R$ 341 million, compared to a net expense of R$ 157 million in the 4Q09, mainly due to the impact of the depreciation of the real on that part of the company’s debt that is denominated in foreign currency (62%), which generated a net expense of R$ 203 million. As a result of the above, the company showed a net profit of R$ 9 million for the first quarter of 2010.
See the full results release for the 1Q10 at www.fibria.com.br/ir.
