Analysis Center

Irani (RANI3) closes 1Q25 with growth in revenue, EBITDA and profit and reinforces focus on sustainable packaging

• • Net revenue of R$423 million, up 16.7% over 1Q24
  • Sustainable packaging sales volume grew 5.1%, while the market fell 0.7%
  • Adjusted EBITDA from continued operations of R$136.3 million, up 14.8% compared to 4Q24
  • Net income of R$60.8 million, 36.8% higher than in 1Q24
  • Net debt/EBITDA at 2.21x, with 92% of debt in the long term
  • Progress in the buyback program: more than 22 million shares since 2021 (8.9% of the shareholder base)

Net revenue reached R$423 million in 1Q25, an increase of 16.7% compared to the same period last year. The positive result is due to the increase in sales volume and the recovery of prices in the Sustainable Packaging and Paper for Sustainable Packaging segments. These figures already take into account the adjustment of previous periods with the exclusion of the resin operation, discontinued in this first quarter.

“Given the sharp increase in the cost of OCC in the last twelve months, Irani is in a trend of passing on prices to restore margins. Our result was also positively impacted by the increase in packaging sales volume, which grew 5.1% compared to the first quarter of last year, while the market fell by 0.7% in the period, thanks to investments in the Gaia II project, which expanded our production capacity”, says Irani’s Director of Administration, Finance and Investor Relations, Odivan Cargnin.

The company also reported an 8.3% increase in sales in the Sustainable Packaging Paper (Paper) segment compared to 1Q24 – and 12.4% compared to 4Q24. According to the executive, this is a reflection of the more buoyant market and investments in expansion. Regarding the closure of the gum resin distillation plant in Balneário Pinhal/RS in 1Q25, the executive states that this is a move that reflects Irani’s commitment to optimizing its operations, making better use of its assets and generating greater value for shareholders. “We are reinforcing our position as the only player focused on sustainable packaging on the B3,” Cargnin highlights.

Adjusted EBITDA in 1Q25 was R$136.3 million, with a margin of 32.2%, an increase of 14.8% compared to the amount recorded in 4Q24 (R$118.7 million with a margin of 29.1%). Compared to 1Q24 (R$119.8 million with a margin of 33.1%), the increase was 13.7%. “The improvement in Adjusted EBITDA from continued operations is associated with the increase in revenues due to higher production and sales volumes and better prices practiced in 1Q25”, reinforces Cargnin. The executive also highlights the net debt/Adjusted EBITDA ratio, of 2.21 times at the end of 1Q25, which is within healthy levels for the company, which has recently invested heavily. In addition, 92% of the debt has a long-term profile, 99% in local currency, and the quarter ended with R$667.1 million in cash. “Irani remains focused on generating value for its shareholders in a healthy and sustainable manner.”

Net income in 1Q25 was R$60.8 million, 36.8% higher than the result in 1Q24 (R$44.5 million). Compared to 4Q24, disregarding the non-recurring effect of a tax credit of R$168.2 million, the result was 181.6% higher.

The company is advancing in its third Share Buyback Program. In 1Q25, 1,835,600 shares were repurchased at an average price of R$7.07. Since the beginning of the first program in 2021, more than 22 million shares have been repurchased, 8.9% of the shareholder base. The strategy aims to enhance the creation of value for shareholders in the long term.

Summary of 1Q25:

Operating Cash Generation (Adjusted EBITDA FROM CONTINUING OPERATION)

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