CMPC plans to mergers and acquisitions in Brazil

CMPC has the goal of becoming the number 1 company in terms of the tissue market in Latin America, "with better profitability", aims to increase your market share (market share) in Brazil and in Mexico on 500-800 basis points to 17-18 percent, financed mainly through mergers, acquisitions and organic growth. In your fourth ' Day ' Investors, the company told analysts and investors in Brazil guests "would rather focus their mergers and strategic acquisitions to concentrate your regional presence, most of the assets of CMPC are in the southern part of São Paulo", According to the Citi Business, in a report sent to your customers. However, "If the right opportunity", consider getting into other regions of the South American country. The Citi Business was one of the participants of the event that happened in the cities of Santiago and Concepcion, on 22 and 23 August, with exhibitions and visits to company facilities. In addition, margin expansion in Latin America is expected, as the company focuses on higher-margin products (retail and institutional), increasing your participation in sales mix of 50% (from the current 34%). Both segments should continue growing at double digits in the coming years, said the broker. The above would be financed primarily with a cost-cutting plan, for about $70-100 million over the next 3 years ($ 20-30 million already in 2018 '), a reduction of fixed costs in -1.5 1.0% of net sales and (better) fiber management. In the short term, "the banks of tissue CMPC's business still pressed by rising pulp costs, although there is progress in price (increase of + 2%, but need + 4% to compensate for the higher cost). of pulp), "said the Citigroup Citchile. INVESTOR DAY the new CEO of CMPC, Francisco Ruiz-Tagle, and other members of senior management have focused their presentations on productivity, profitability, growth and sustainability. The Citi Business attended the event and declared himself a bit "more optimistic" about the potential for growth and profitability of the company. In a report, the middleman said he was "thrilled" with the discussion on the good expectations of results in the second half of 2018, due to cost-cutting initiatives in the area of tissue as well as a solid pulp market; and growth in the business of tissue (organic and M &), packing boxes and forest area in Brazil.