Irani Papel e Embalagem (RANI3) Q1 2025 earnings summary

Executive summary

• Net revenue reached BRL 423.1 million in Q1 2025, up 16.7% year-over-year and 3.7% sequentially, driven by higher volumes and prices in sustainable packaging and packaging paper segments.

• Adjusted EBITDA was BRL 136.3 million, up 13.7% year-over-year, with a margin of 32.2%.

• Net profit reached BRL 60.8 million, up 36.8% year-over-year, reflecting improved revenues and margins.

• Discontinued the resin/rosin business segment, focusing on core packaging and forestry operations.

Financial highlights

• Export revenue accounted for 10.1% of total, with strong growth in both domestic and export markets.

• Adjusted EBITDA margin at 32.2%, up from 29.1% in 1Q24.

• Net debt at BRL 1.0 billion, with net debt/EBITDA ratio of 2.21x.

• Dividend payout of BRL 0.71 per share over the last 12 months, totaling BRL 168.5 million.

• ROIC (LTM) at 11.3%, up from 11.0% in 4Q24.

Outlook and guidance

• Expectation of continued revenue and EBITDA growth, with further deleveraging anticipated.

• Price increases in packaging and paper expected to impact Q2 positively.

• Optimism for demand in animal protein and agribusiness sectors, especially in the second half of 2025.

• Management expects strengthening of operating cash flow as Gaia Platform investments ramp up.

• S&P reaffirmed 'brAA' credit rating with a stable outlook, citing resilience in pricing and volumes.