August 3, 2023
(press release)
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2Q23 HIGHLIGHTS Consolidated Sales was USD2,016 million, with a decrease of 5% QoQ and an increase of 2% YoY. The lower dynamics in the Pulp market were partially offset by higher sales in Softys. EBITDA was USD288 million, down by 48% QoQ (or 24% after isolating the effect of insurance income in 1Q23) and down by 51% YoY. The declines are mainly explained by lower selling prices and higher cash costs in the pulp business. Net Income was USD125 million, which compares to USD226 million in 1Q23 and USD225 million in 2Q22, reflecting a lower operating result. In the Pulp business, sales volume to third parties increased by 14% QoQ and 2% YoY, reaching 985 thousand tons. The average selling price decreased by 24% QoQ and 30% YoY. In the Tissue and Personal Care business, Softys recorded higher sales, with increases of 20% QoQ and 35% YoY, as well as higher margins, thanks to a higher average price, favorable exchange rate impact, and volume growth in Personal Care. This result was boosted by the integration of Carta Fabril in June 2022 and P.I Mabe in May 2023. In Biopackaging, sales decreased by 9% QoQ and 4% YoY, in line with lower industry demand. The average price decreased by 1% QoQ and increased by 4% YoY. The Net Debt/EBITDA ratio was 2.29x in 2Q23, above the 1.71x in 1Q23, and remained below the
internal policy range (2.5x to 3.5x).
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