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Maria Cláudia Almeida
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Kamilla Barboza
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Modified on 02.10.2014

Media | Releases

February 03, 2014 - Fibria closes 2013 with strong operational performance and record revenue of R$ 6.9 billion

Record annual EBITDA of R$ 2.8 billion, with a 40% margin
Free Cash Flow of R$ 1.27 billion in 2013; an increase of 52%
Land sales could reach R$ 1.65 billion

São Paulo (SP) – The strength of the dollar against the real over the past year, along with the increase in dollar-denominated pulp prices, helped Fibria to record healthy operating results in 2013. The company posted record net revenue of R$ 6.92 billion last year, up by 12% over the 2012 figure. In the fourth quarter of 2013, the net revenue was R$ 1.96 billion, 6% higher than in the same period in 2012 and a new quarterly record.

The annual EBITDA (earnings before deducting interest, taxes, depreciation and amortization) reached R$ 2.8 billion last year, an increase of 24% compared to 2012 and yet another new record high since the for the company. And the record fourth quarter EBITDA of R$ 823 million represented an increase of 9% over that of the same period of 2012. The 11% increase in the net average cost in reais, boosted by the appreciation of the dollar against the Brazilian currency, also contributed to the EBITDA growth. The EBITDA margin rose from 36% in 2012 to 40% last year.

The increased EBITDA, together with a significant improvement in working capital, the efficient management of capital investment and the steady reduction of the interest rates paid on the company’s debt gave Fibria a free cash flow of R$ 746 million in the fourth quarter, 87% higher than during the same period of 2012. The total for the whole of 2013 amounted to R$ 1.27 billion, 52% higher than that of the previous year.

The company’s total production in 2013 came to 5.26 million tons, which was 1% down compared to the previous year, mainly due to there being fewer production days in 2013, as well as reduced production at the Aracruz Unit during the heavy rains that hit the state of Espírito Santo in December, causing difficulties in supplying wood to the mills. Fibria's pulp sales in 2013 amounted to 5.2 million tons, 3% less than in 2012, due to the lower production volume available and the need to rebuild inventories to a more suitable level, which stood at 50 days at the end of 2013, close to the logistics chain ideal of 52 days.

Land sales and signing up to Refis

On December 30, 2013, Fibria received R$ 500 million in the first installment relating to its sale of land to Parkia Participações, enabling it to close 2013 with a cash balance of R$ 1.94 billion, after discounting the fair value of the old derivative transactions. This meant that in 2013 the company was able to reduce its leverage, as measured by the ratio between its dollar-denominated net debt and EBITDA, to 2.6, against 3.3 at the end of 2012. If we take into consideration the R$ 903 million outstanding from the sale of land, which is expected to be paid in the first quarter of 2014, the company’s leverage, in dollar terms, falls to 2.3. An additional amount of up to R$ 248 million may be received by the company in relation to the sale of land, payable in three installments, on the 7th, 14th and 21st anniversaries of the signing of the sale contract, taking into consideration the appreciation of the value of the land calculated on each anniversary, which could yield a potential total amount of R$ 1.65 billion for the transaction. On the same date, in addition to the sale contract, the company also signed agreements for forest partnership and the supply of standing wood, both for a period of up to 24 years.

Towards the end of November, the company signed up to Refis, the government’s refinancing program for outstanding Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) in relation to income earned abroad up to December 31, 2012. Fibria opted to make an up-front cash payment, with 100% exemption from fines, interest and other charges, and the sum of R$ 560 million was recorded against the company’s fourth quarter results. Since 30% of this can be offset by credits for tax losses, the effective cash disbursement was R$ 392 million.

Joining the Refis program and the net financial loss of R$ 599 million in the fourth quarter, mainly due to the appreciation of the dollar against the real – which affects around 95% of the company’s total debt – were decisive factors causing Fibria to record a net loss of R$ 185 million for the quarter, bringing the accumulated loss for the year to R$ 698 million, similar to the figure for 2012. Excluding non-recurring items, such as Refis and dollar appreciation, among others, the company would have recorded net profits of R$ 323 million in the fourth quarter and R$ 834 million for the full year.

Repurchasing of debt

This January, Fibria has announced the repurchasing of 100% of the outstanding balance on the Fibria 2020 Bond, equivalent to US$ 690 million, the annual cost of which is 7.5%. The settlement will take place in March 2014, mainly using cash from the land sale transaction. As a result, the average cost of the company’s existing foreign currency debt will fall from the current 4.6% p.a. to 4.0% p.a., generating annual savings on interest payments of approximately US$ 52 million.


Fibria has once again been selected for the portfolio of the BM&FBovespa (São Paulo Stock Exchange) Corporate Sustainability Index (ISE), in which it has been included ever since this indicator was first introduced, in 2005. The ninth ISE portfolio will be in effect from January 6, 2014 to January 2, 2015 and includes 40 companies from 18 different sectors.

The selection of companies for the ISE is carried out by the BM&FBovespa, in partnership with the Center for Sustainability Studies (GVCes) of the Getúlio Vargas Foundation (FGV-EAESP). The assessment is based on a balance between economic growth, social responsibility and environmental performance, through integrated analysis of the different aspects of sustainability.