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Irani (RANI3) announces third-quarter 2024 financial results

• • Net Revenue: R$426.4 million, an increase of 4.5% (3Q23) and 8.4% (2Q24), driven by solid demand and the beginning of price increases.
  • Adjusted EBITDA: R$125.3 million, margin of 29.4%; positive impact of investments in the Gaia Platform.
  • Sustainable Packaging: Sales volume +6.1% and prices +1.5%.
  • Net Income: R$37.6 million, reduction due to lower variation in fair value and higher depreciation.
  • Share Buyback: 3.3 million shares repurchased in the quarter, totaling 17 million since 2021.
  • Debt: Net Debt/EBITDA of 2.26x, average cost of debt at 11.3% per year.
  • Recognition: GPTW Awards and Anefac Transparency Trophy.

Net revenue reached R$426.4 million, up 4.5% from 3Q23 and 8.4% from 2Q24, demonstrating strong demand during this period and signaling the beginning of price pass-through to customers.

Adjusted EBITDA in 3Q24 was R$125.3 million with a margin of 29.4%, slightly below that recorded in 3Q23, which was R$133.3 million with a margin of 32.7%, and higher when compared to 2Q24, which was R$118.0 million with a margin of 30.0%.

“In this quarter, we saw a 30.8% increase in costs for OCC, our main raw material. Even so, the Company maintained a stable level in EBITDA and margin, mainly due to the beginning of the capture of returns on investments made in the Gaia Platform”. points out Irani’s Director of Administration, Finance and Investor Relations, Odivan Cargnin.

“The sales volume of the Sustainable Packaging segment (Corrugated Containerboard) increased by 6.1% (in tons) in 3Q24 compared to 3Q23, reflecting the more heated market in 2024 and the ramp up of production capacity added by the Gaia II Project, compared to a 4.2% increase (in tons) in the Paper market in the same period. In addition, we had a 1.5% increase in prices compared to the second quarter of this year, initiating the movement of transfers to customers”. Comments Lindomar Lima de Souza, Director of the Packaging Business.

The company’s net income closed at R$37.6 million, a reduction of 41.8% compared to 3Q23 and 6.1% compared to 2Q24. The decreases mainly reflect the lower variation in the fair value of biological assets and the higher depreciation, due to investments in the Gaia Platform. It is important to note that these items have no cash effect, that is, they do not generate disbursements by the company.

In 3Q24, 3,311,600 shares were repurchased under the 2024 Share Buyback Program. The average buyback price in the quarter was R$7.98. In total, 3,897,400 shares were repurchased since the beginning of the 2024 Share Buyback Program, at an average price of R$8.09. The company is in its third share buyback program since 2021 and, in total, more than 17 million shares have been repurchased, corresponding to a total of 7% of the shareholder structure. As commented by the company, this strategy aims to enhance the creation of value for shareholders in the long term.

The company continues to keep its debt under control, with a Net Debt/Adjusted EBITDA ratio of 2.26 times in 3Q24, in line with the parameters established in the Policy for Financial Management. The company also highlights the average cost of debt, which, in the last 12 months, was 11.3% per year (equivalent to CDI + 0.3%)

This quarter, the company was recognized with important awards. In the people dimension, the company entered the GPTW® ranking of Best Companies to Work for in Brazil for the second time, reaching 32nd place nationwide. Irani also won, for the fourth consecutive time, the Transparency Trophy from the National Association of Finance, Administration and Accounting Executives (Anefac), highlighting the quality of its financial statements and reinforcing its commitment to transparency and the ethical principles that guide the company’s decisions.

Q3 2024 Summary:

Operating Cash Generation (Adjusted EBITDA)

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