Forward-Looking Statements
This presentation may contain forward-looking statements that should be considered as good faith estimates. Such statements are subject to risks and uncertainties outside of CMPC's control that could cause CMPC's actual results to differ materially from those set forth in the forward-looking statements. These risks include in particular those described in CMPC's Financial Statements, Note 3 ("Risk Management").
Forward-looking statements speak only as of the date they are delivered. CMPC undertakes no obligation to publicly update or revise them based on developments which differ from those anticipated.
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Opening Comments
A 100 years company, leading sustainable producer of pulp, tissue, wood and packaging products, based in Latin America with global commercial presence.
Strategic but disciplined approach towards new market opportunities
Great operational execution under a constant progress
Deleveraging in the range with a strong financial discipline
4Q20 Highlights
Operational & Financial Highlights
Pulp sales volumes of 1,001,000 tons, 9% higher QoQ and 7% higher YoY.
Hardwood CIF 465 USD/ton
Softwood CIF 590 USD/ton
Biopackaging sales volumes of 239,000 tons, 12% higher QoQ and 8% higher YoY.
Tissue sales volumes of 200,000 tons, 1% up QoQ and YoY.
Personal Care product sales volumes reached 1,794 million units, decreasing 3% QoQ and increasing 8% YoY.
EBITDA of USD257 million, in line with the previous quarter and 15% higher YoY.
Positive free cash flow reached USD24 million, compared to USD54 million in 3Q20 and a Negative free cash flow of USD298 million in 4Q19.
Net debt to EBITDA ratio of 3,13x, decreasing from 3,27x in 3Q20 and increasing from 2.81x in 4Q19.
Net income of USD85 million, compared to an income of USD0.6 million in 3Q20 and a loss of USD18 million in 4Q19.
In USD Milllion
Revenue COGS
Other Operational Expenses
EBITDA
EBITDA margin %
Operational Result Non Operational Result
Net Income
4Q19 3Q20 4Q20
QoQ
3rd Party Volumes Forestry + Solid Wood Prod. (1) Market Pulp(2)
Biopackaging
(2)
Tissue Papers(2)
Personal Care Products(3)
YoY | ||
3% | ||
2% | ||
-7% | ||
15% | ||
202 bps | ||
29% | 142% | |
N/A | N/A | |
>1000% | N/A | |
4Q19 3Q20 4Q20 | QoQ | YoY |
20% | 47% | |
9% | 7% | |
12% | 8% | |
1% | 1% | |
-3% | 8% |
1.372 1.290 1.409 9%
(942) (858) (958) 12%
(207) (178) (193) 8%
223
254
257
16,2% 19,7% 18,3% -141 bps
35 (53)
66 85
(65) 0
(18)
1
85
861
1.055 1.269
940
915 1.001
222
213 239
198
198 200
1.665
1.848 1.794
1%
COGS and Other Operating Expenses
COGS (USD Million)
Other Op. Exp (USD Million)
+2%
-7%
4Q19
3Q20
4Q20
4Q19
3Q20
4Q20
COGS
Other Operating Expenses
Up 12% QoQ:
(-) Higher sales volumes of Pulp and Biopackaging
(-) Increase in direct costs in Softys due to higher unitary costs in the personal care segment.
(-) Higher operating expenses in Pulp.
Up 8% QoQ:
(-) Higher administrative expenses in all businesses due to Chilean peso appreciation and higher administrative expenses.
(+) Lower expenses related to COVID-19
Up 2% YoY:
(-) Higher manufacture cost in Pulp and Softys.
(+) Lower direct costs in all businesses areas due to higher operational efficiencies and lower raw material costs.
(+) Positive effect related to local currency devaluation.
Down 7% YoY:
(+) Lower administrative expenses in all businesses
(+) Positive effect due to local currency depreciation.
(+) Lower marketing expenses in Softys
(-) Higher COVID-19 expenses
Pulp Business
Sales*
EBITDA*
4Q19
3Q20Forestry
4Q20Pulp
Third Party Sales Volumes
- Pulpwood
- Sawing Logs
- Sawn Wood
- Millwork
- Plywood
- Others
Total ( t h. m 3) BSKP
BEKP
Total Market Pulp (Th. Tons) P&W Guaiba (Th. Tons)
* Figures in USD million
+25%172
185
4Q19
3Q20 4Q20
4Q19
3Q20
4Q20 QoQYoY
77
43
62
44% -20%
351
555
779
40% 122%
158
170
156
-8% -1%
45
56
57
2% 26%
115
115
102
-11% -11%
115
117
112
-4% -3%
861
1.055
1.269
20% 47%
170
769
180
735
175 -3% 3% 826 12% 7%
940
13
915
12
1.001 14
9% 7% 21% 11%
Revenues: +12% QoQ, +9% YoY
Forestry Sales Volumes: +20% QoQ, +47% YoY
Forestry Prices: -18% QoQ, -24% YoY
Pulp Production: +7% QoQ, +10% YoY
Planned maintenance downtime at Laja during the quarter, and
Pacifico and Guaiba II in 3Q20.
Pulp Sales Volumes -- QoQ (+9%)
+12% BEKP: higher exports to China.
-3% BSKP: lower exports to China, partially compensated by
Europe.
-- YoY (+7%)
+7% BEKP: higher sales to China.
+3% BSKP: higher exports to Europe, LatAm and China.
Pulp Prices: BSKP USD590/ton, BEKP USD465/ton.
EBITDA: -- QoQ (+7%)
Higher sales volumes together with slightly higher prices.
Higher operating costs and administrative expenses due to maintenances and Chilean peso appreciation.
-- YoY (+25%)
Higher sales due to higher volumes and pulp prices, together with lower administrative expenses.
Higher distribution costs due to the increase in sales volumes.
Softys Business
Sales*
EBITDA*
-6%
4Q19
3Q20
4Q20
Third Party Sales Volumes
- Chile
- Brazil
- Mexico
- Argentina
- Peru
- Uruguay
- Colombia
- Ecuador
Total Tissue Paper (Th. Tons)
- Diapers
- Feminine Care
- Others
Total Personal Care (M. Units)
4Q19
3Q20 4Q20
4Q19
3Q20
4Q20 QoQYoY
39
39
39
-2% -2%
59
59
59
-1% 0% +6% QoQ; -5% YoY for Tissue Paper
38
35
39
13% 4%
24
28
27
-4% 11%
25
24
24
-2% -3%
5
5
5
-1% -7%
7
6
6
5% -6%
2
2
2
-8% -14%
198
198
200
1% 1%
1.004 322 338 1.665
1.102 372 374 1.848
1.073 336 384 1.794
-3% 7%
-9% 4% -- YoY (-14%)
3% 14% -3% 8%
Revenues: +5% QoQ, -6% YoY
Volumes: -- Tissue Paper:
+1% QoQ, higher volumes in Mexico (+13%), compensated by lower volumes in Argentina (-4%), Chile (-2%) and Brazil (-1%).
+1% YoY, higher sales volumes in Argentina (+11%) related to the Zarate ramp-up, and Mexico (+4%), partially compensated by lower volumes in the away from home segment.
-- Personal Care Products:
-3% QoQ driven by lower volumes of feminine care products and diapers, mainly in Chile.
+8% YoY, driven by higher sales in every category, with diapers increasing in Argentina and Mexico, wet wipes in almost every country, and feminine care products increasing in Argentina and Uruguay.
Prices (in USD):
+3% QoQ, -16% YoY for Personal Care Products
EBITDA: -- QoQ (-5%)
Higher operating costs due to higher unitary costs in the personal care segment.
Partially compensated with higher average prices in US dollars.
Lower sales due to lower average prices, together with higher operating costs due to face masks production.
Partially compensated with lower administrative expenses due to local currencies depreciation and lower marketing expenses.
Biopackaging Business
Sales*
EBITDA *
+138%
4Q19
3Q20
4Q20
Third Party Sales Volumes
30
30
4Q19
3Q20 4Q20
4Q19
3Q20
4Q20 QoQYoY
- Boxboard
- Paper Sacks
- Other Papers
- Corrugated Paper
- Corrugated Boxes
- Molded Pulp Trays
Total (Th. Tons)
113
106
118
12% 5%
20
25
28
12% 37%
26
15
21
35% -20%
26
31
30
-2% 16%
35
32
40
22% 14%
3
5
3
-35% 14%
222
213
239
12% 8%
Revenues: +11% QoQ, +8% YoY
Volumes: -- QoQ (+12% )
Higher sales of boxboard (+12%) and corrugated boxes (+22%), partially offset by lower volumes of molded pulp trays (-35%) and corrugated paper (-2%).
-- YoY (+8%)
Higher sales volumes of paper sacks (+37%), boxboard (+5%), corrugated paper (+16%) and corrugated boxes (+14%).
Prices: -1% QoQ, stable YoY
EBITDA : -- Stable QoQ
Highersales volumes, particularly in boxboard andcorrugated boxes.
Compensated with lower average prices and higher operating costs due to the higher volumes.
-- YoY (+138% )
Lower operational costs due to lower raw material costs and higher operational efficiencies.
Lower administrative expenses.
Financial Execution & Cash Generation
Free Cash Flow of USD24 million, from positive USD54 million in 3Q20 and a negative free cash flow of USD298 million in 4Q19.
CAPEX of USD134 million during 4Q20, increasing from USD68 million in 3Q20 and decreasing from USD429 million in 4Q19.
Cash position of USD891 million at the end of 4Q20, down 7% QoQ and up 45% YoY.
Net debt of USD3,094 million at the end of 4Q20, down 1% QoQ and 6% YoY.
Net Debt/EBITDA ratio of 3.13x during the quarter, decreasing from 3,27x in 3Q20 and up from 2.81 x in 4Q19.
USD Million | 4Q19 | 3Q20 | 4Q20 | QoQ | YoY |
(i) Current Interest-Bearing Liabilities | 507 | 335 | 253 | -25% | -50% |
(ii) Non-Current Interest-Bearing Liabilities | 3.367 | 3.683 | 3.748 | 2% | 11% |
(iii) Other Obligations | (29) | (27) | (27) | -2% | -6% |
(iv) Net Hedging Current Liabilities related to Debt Instruments | 2 | 11 | 5 | -49% | 219% |
51 | 77 | 6 | -93% | -89% | |
3.898 | -2% | 2% | |||
615 | -7% | 45% | |||
3.283 | -1% | -6% |
(v) Net Hedging Non-Current Liabilities related to Debt Instruments
Gross Debt ( (i) + (ii) + (iii) + (iv) + (v) )
4.078 3.985
Cash*
958
891
Net Debt
3.120 3.094
2021 Strategic Outlook
A 100 years company, leading sustainable producer of pulp, tissue, wood and packaging products, based in Latin America with global commercial presence.
Positioned to benefit from improving market conditions
Fully committed to the execution of our growth strategy
Efficiencies and productivity under a constant improvement, looking for further margin increases
Sustainability in the core of CMPC´s strategy, long-term relationship with our stakeholders and environment
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Empresas CMPC SA published this content on 03 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2021 22:22:07 UTC.