By Brazil Stock Guide – Irani Papel e Embalagem S.A. (B3: RANI3) reported a 79.6% drop in fourth-quarter net profit on Monday, as the year-earlier comparison included a large one-off tax credit.
The Porto Alegre-based paper and packaging maker posted net income of 37.997 million reais ($6.8 million) for the October–December period, versus a base inflated by a 168.248 million reais tax credit booked in the fourth quarter of 2024.
Excluding that non-recurring item, prior-year quarterly profit would have been 17.935 million reais, implying underlying earnings more than doubled year on year.
Net revenue rose 2.0% to 415.996 million reais in the quarter, while adjusted EBITDA increased 8.7% to 129.024 million reais. EBITDA margin expanded to 31.0%, up 1.9 percentage points from a year earlier.
According to the company, the decline versus the fourth quarter of 2024 mainly reflects the absence of the net tax credit recognized in that period.
Corrugated packaging prices rose 7.0% year on year in the quarter, partly offsetting a 6.0% drop in volumes. Scrap paper prices fell 13.7% compared with the previous quarter, easing raw material costs late in the year.
Free cash flow totaled 64.899 million reais in the quarter. Net debt to EBITDA stood at 1.99 times at the end of 2025, below the company’s 2.5 times internal ceiling.
Leave a Reply