Irani profit falls 70.3% to BRL 30.9 million in Q2

Brazilian packaging company Irani Papel e Embalagem reported net income of BRL 30.928 million for the second quarter of 2026, a 70.3% decline from BRL 70.526 million in the same period of the previous year. Sequential profit rose compared with BRL 19 million in the first quarter of 2026. Recurrent net profit dropped to BRL 7.235 million from BRL 50 million, impacted by non-cash biological asset revaluations and higher depreciation and exhaustion.

Net revenue increased 1.6% year over year to BRL 431 million, compared with BRL 424 million a year earlier, and grew 5.4% quarter over quarter. Adjusted EBITDA advanced 8.2% year over year to BRL 131.633 million, representing a 30.5% margin. The company noted that adjusted EBITDA would have reached BRL 136.123 million without a negative impact of BRL 4.490 million caused by a technical issue at the TG4 energy unit.

Sales volumes rose in core lines. Sustainable packaging volume expanded from 41,000 tonnes to 44,000 tonnes, while paper for packaging increased 3.2% year over year to 31,900 tonnes. Realized prices rose 1.3% quarter over quarter in tonnes but dropped 1.9% in square meters. In addition, scrap prices recovered 2.9% quarter over quarter after dropping 20% year over year.

Irani ended the quarter with BRL 833 million in cash, gross debt of BRL 1.9 billion, and net debt of BRL 1,074 million, lowering leverage to 2.07 times net debt to EBITDA. The company completed a BRL 750 million banking facility over a five-year term and repurchased 605,100 ordinary shares under its buyback program. It paid BRL 64.894 million in dividends during the quarter, or BRL 0.28 per share, and proposed an additional distribution of BRL 0.03438359 per share.