Fibria, one of the largest producer of eucalyptus pulp in the world, closed the second quarter with a net income of R$631 million. The result is a significant improvement compared to the R$19 million profit posted in the first quarter of this year and to the R$593 million loss posted a year earlier.
Among the main factors leading to this result, the highlight is on the securing of premium Tax (IPI) credits under the Special Export Program (BEFIEX) for the net after-tax amount of R$568 million, and the improved income given the lower impact with financial costs arising from transactions involving the repurchase of company debt. Excluding these effects, Fibria's net income would have been of approximately R$139 million in the second quarter, reaching a cumulative profit of R$358 million in the first half of the year.
The company's pulp sales were up 12% over the 1Q14, and 5% year-on-year, closing at 1.334 million tons. As a result, pulp inventories ended the quarter in 52 days, a level considered optimal for its logistics chain and a day less than in 2013.
Pulp production stood at 1.271 million tons, steady compared to 1Q14, and down 1% YoY due to the scheduled maintenance shutdown at the Veracel plant, which, unlike in 2013, took place mainly in the second quarter. Over the past twelve months, Fibria's sales added up to 5.265 million tons of pulp, representing more than 100 percent of its production in the period.
Fibria reported an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 594 million, with a margin of 35%, a reduction of 13% and 8% percent over the previous quarter and the same period of 2013, respectively. The decrease in EBITDA in the second quarter is explained mainly by lower net pulp prices in Reais and higher cost of goods sold - largely due to the increase in the sales volume.
