Profit of US$24.77 million: CMPC reduced its earnings by 50% in March

Empresas CMPC reported its first-quarter results to the Financial Market Commission (CMF), which revealed a 50.2% year-on-year decline in earnings through March. These totaled US$24.77 million.

In its report, the Matte group company stated that the drop in profits is explained 'mainly by the decline in Adjusted EBITDA and an increase in net financial expenses.'

The 8.1% year-on-year decrease in 'Adjusted EBITDA' was due to 'a lower operating margin in the pulp segment, which was partially offset by the better performance of Softys, associated with a more favorable sales mix, with a higher share of the personal care unit.'

In its reasoned analysis sent to the CMF, the paper company included a letter from CMPC's CEO, Francisco Ruiz-Tagle, addressed to investors, where he noted that 'although the first-quarter results reflect a still challenging environment, the company is deploying all its efforts to continue improving its competitiveness.'

Regarding the pulp business, the executive noted that they observed increases in short-fiber prices compared to the previous quarter. 'This upward trend has continued during the quarter, supported by a tighter market balance in a context of lower supply, coinciding with general plant shutdowns carried out by producers in Latin America, Northern Europe, and Asia,' he added.

Source: El Mercurio