RANI3: quote, dividends and indicators for Irani Papel e Embalagem

Irani Papel e Embalagem S.A. is an integrated forestry-based company founded in 1941, originally with the goal of setting up a paper mill in Joaçaba, in western Santa Catarina, now the municipality of Vargem Bonita. The corporate headquarters remain in Porto Alegre, in the state of Rio Grande do Sul, and over the decades the company has consolidated a model that combines owned forests, pulp production, manufacturing of packaging paper, and conversion into corrugated cardboard packaging. The company’s common shares are traded on B3 under the ticker RANI3 and have been registered as publicly held since 1977. In 1994, control passed to the Habitasul economic group, marking a phase of corporate restructuring and expansion. Starting in 1997, with the acquisition of corrugated cardboard industrial assets in São Paulo, Irani began the verticalization of its sustainable packaging business, a movement later reinforced by acquisitions, mergers, and industrial investments in Santa Catarina, Minas Gerais, and São Paulo.

Irani Papel e Embalagem’s business model is based on three operating segments: Sustainable Packaging (corrugated cardboard), Paper for Sustainable Packaging (paper), and Forest RS. The company operates in an integrated manner, with its own and leased forestry base supplying pine wood to produce long-fiber pulp, an input used in the manufacture of kraft and specialty papers for flexible and rigid packaging. The company also uses paper scrap as raw material for the production of recycled papers, which are converted into corrugated cardboard sheets and boxes. This integrated chain, from forest planting to delivery of paper and packaging solutions, is designed to ensure fiber supply security, cost predictability, and logistics efficiency, as well as to allow for adjustment of the mix between paper sales to the market and internal consumption by the conversion units.

In the Paper for Sustainable Packaging segment, Irani produces a range of low and high basis weight kraft papers, in natural, white, and colored shades, from virgin and recycled fiber. Key lines include Fine Kraft, targeted at low basis weight, high-print-definition food and fast-food packaging; Flash Kraft, a machine-glazed paper used in retail bags, labels, envelopes, and food packaging, with optional moisture resistance; Flat Kraft, mainly for industrial sacks; Flexi Kraft, developed for applications requiring high strength and extensibility, such as packaging for building materials, grains, and chemicals; Fancy Kraft, focused on differentiated applications with higher aesthetic value; Bag Kraft, a recycled paper for retail bags; as well as special papers customized for specific industrial applications, such as high-absorption papers for anti-corrosion packaging. The company also manufactures kraftliner, testliner, medium, and recycled papers used to produce rigid packaging, which are fully consumed by its corrugated cardboard plants. In 2025, paper production for packaging totaled 317,060 tons, distributed between the Vargem Bonita (SC) and Santa Luzia (MG) units, supplying both the domestic market and export markets in South America, the Middle East, Africa, and Asia, in addition to serving as input for the packaging segment itself.

In the Sustainable Packaging (corrugated cardboard) segment, the company produces light and heavy corrugated cardboard sheets and boxes, including regular slotted containers and die-cut boxes. Projects are customized for each application, focusing on mechanical performance, product protection, and logistics optimization. The production process uses flexographic printing with water-based inks, aiming to meet friction resistance and print quality requirements. The packaging plants are located in Vargem Bonita (SC) and Indaiatuba (SP), close to the country’s main industrial consumption regions. In 2025, production of corrugated cardboard packaging reached 170,044 tons, with strong correlation to the food sector. That year, 61.0% of consolidated net revenue came from sales of corrugated cardboard packaging, with a predominance of sales to meatpackers, dairy companies, other food producers, beverage companies, and various industrial segments such as plastics, cosmetics, chemicals, glass, and paper. Data from Empapel indicate that Irani held a 4.07% market share in corrugated cardboard in 2025, with a relevant average annual volume growth track record between 2005 and 2024 among the country’s largest producers.

The Forest RS segment concentrates the base of planted forests on the northern coast of Rio Grande do Sul, with approximately 7,800 hectares allocated to timber sales and land leasing for resin extraction. Considering all forestry assets, as of December 31, 2025, the company held about 37,300 hectares of owned land, mainly in Santa Catarina and Rio Grande do Sul, plus approximately 1,000 hectares under lease. The total forestry base comprised 18,400 hectares of planted forests, 2,200 hectares of infrastructure, and 16,600 hectares of native vegetation, legal reserves, and permanent preservation areas, in line with legal requirements and sustainable management practices. The pine forests in Santa Catarina are located within an average radius of 20 kilometers from the pulp and paper mill in Vargem Bonita, which reduces logistics costs and enables a continuous wood supply flow to the industrial unit.

Irani Papel e Embalagem’s geographic footprint is concentrated in the South and Southeast regions, which account for a significant share of Brazil’s GDP. The company maintains four industrial units: in Vargem Bonita (SC), with a pulp and paper plant and a packaging unit; in Santa Luzia (MG), with a packaging paper mill; and in Indaiatuba (SP), with a corrugated cardboard packaging unit. The administrative and investor relations structure is based in offices in Porto Alegre (RS) and Joaçaba (SC). From a commercial standpoint, sales are carried out by an in-house team and a network of representatives, with the commercial area in São Paulo coordinating distribution to the domestic market and exports. In 2025, 91% of net revenue was generated in the Brazilian market, especially in the states of São Paulo, Santa Catarina, Paraná, Minas Gerais, Rio Grande do Sul, Goiás, Mato Grosso, Mato Grosso do Sul, Rio de Janeiro, and Pernambuco. Paper exports accounted for about 10% of this segment’s production, with destinations such as Argentina, Paraguay, Chile, South Africa, Saudi Arabia, China, Pakistan, and other markets.

The company’s industrial operations are subject to a regulatory framework that involves environmental licensing, authorizations for the use of natural resources, and power generation. Irani requires environmental licenses for the installation, expansion, and operation of its units, as well as for cogeneration activities, in compliance with the National Environmental Policy, CONAMA rules, and state and municipal legislation. In addition, it obtains and renews business permits, fire department inspection certificates, and other registrations required for industrial and power generation activities. In recent years, it has invested significantly in self-generation of energy through biomass cogeneration plants, small hydropower plants, and thermoelectric plants, which in 2025 accounted for approximately 69% of the company’s electricity consumption, helping reduce exposure to third-party tariffs and supporting energy risk management.

From an environmental, social, and governance practices standpoint, Irani Papel e Embalagem adopts a set of certifications and projects related to forest management and emissions mitigation. All owned forests are FSC-certified for forest management, and industrial units hold FSC chain-of-custody certifications, in addition to ISO 14001 environmental management certification and, in the case of the packaging units, ISO 9001 and ISO 14064. The company has implemented Clean Development Mechanism projects approved by the UN, including a biomass cogeneration boiler in Vargem Bonita and a fully aerobic wastewater treatment plant, which generate Certified Emission Reductions tradable as carbon credits. Part of these credits is made available in partnership with Instituto Ekos Brasil, within initiatives related to tackling climate change. The company has also issued green debentures, linking long-term funding to expansion and efficiency projects such as those under the so-called Gaia Platform, focused on increasing production capacity, chemical recovery, process improvement, and strengthening energy self-sufficiency.

Irani’s recent trajectory includes migrating to B3’s Novo Mercado segment, completed in 2020 with the conversion of preferred shares into common shares and the redesign of its bylaws, reinforcing corporate governance practices aligned with the exchange’s requirements. In the same year, the company carried out a follow-on equity offering (Re-IPO), increasing the free float of RANI3 and raising funds allocated to financing the Gaia Platform. The corporate structure was also simplified through mergers of operating subsidiaries and export vehicles, while non-core activities were discontinued, such as the furniture segment, specific e-commerce operations, and, in 2025, the sustainable resins plant in Rio Grande do Sul. This repositioning reinforced the exclusive focus on renewable forestry-based packaging, consolidating Irani as a specialized player in sustainable paper and packaging with shares traded on B3.