Pulp Market Facing Challenging Scenario in Prices and DemandComments on Business
Decrease in demand for printing and writing in Brazil.
Decline in pulp prices and appreciation of the BRL were the main factors reducing adjusted EBITDA.
Increase in expenses.
Decline in pulp sales even with higher demand in China.
KPI Driving Revenue and Earnings
Pulp sales volume and revenue -6% vs. 2Q22.
Paper sales -9% vs. 2Q22.
2Q23 Adjusted EBITDA -38% YoY.
Catalysts
Bad earnings should be a catalyst for the stock price to decline.
Trade Structure
Entry: 10.71
Target: 9.29
Stop: 12.12
