Brazil’s election shock has hit local assets hard, yet a weaker real can quietly reshape the maths for exporters that earn in foreign currency and spend mostly at home. When headlines focus on politics and debt, pricing in exporters often becomes blunt and emotional. This article walks through three Brazilian exporters from our weaker real screener that look particularly exposed to today’s currency story.
The three exporters highlighted below are simply the first pass on this theme. The full screen surfaced 9 more Brazilian companies with equally detailed currency stories that are not covered here. To identify which of these exporters best fits your own risk and return preferences, head straight into the Brazilian exporters benefiting from a weaker real screener.
Overview: Klabin is a Brazilian pulp, paper and packaging producer that exports USD-linked products while carrying a largely Brazilian cost base.
Operations: Klabin generates about R$5.8b from pulp, R$11.0b from papers, R$7.6b from packaging and R$3.3b from forestry activities.
Market Cap: R$22.4b
Klabin is closely aligned with the weaker real theme, as export-linked pricing coincides with largely local costs and integrated forests.
“Ramping up production at Puma II and fully utilizing state-of-the-art assets in Ortigueira and Monte Alegre should lift volumes and operating leverage as commodity prices normalize, supporting EBITDA and earnings.”
Klabin’s earnings profile depends heavily on how the pressure on its costs and pricing balance ultimately resolves.
That cost pressure question is exactly what the full narrative for Klabin unpacks, showing where Klabin’s currency exposure, capital plan and cash generation could be quietly decoupling from headline noise.
Overview: São Martinho is a Brazilian sugarcane group that sells sugar, ethanol and power tied to global markets while most costs stay in reais.
Operations: São Martinho generates about R$3.1b from sugar, R$2.5b from ethanol, R$780 million from corn ethanol, R$290 million from electricity and smaller amounts from yeast, other products and real estate.
Market Cap: R$6.8b
For the weaker real theme, São Martinho matters because sugar and ethanol prices are often referenced to global benchmarks while the heavy lifting in cane fields and plants is paid for in local currency.
“Phase 2 of the Boa Vista corn ethanol plant is reported to be on schedule, with ramp up expected around May to June next year and design capacity of about 1 million tonnes of corn processed annually once fully operational. This would extend São Martinho’s higher margin corn ethanol and DDG contribution to revenue and EBITDA. Industry wide growth in Brazilian corn and sugarcane based ethanol supply, with corn ethanol volumes rising from about 9 billion to 11 billion liters, is contributing to current oversupply and pressure on hydrous prices.”
