Outlook for 2020

We started 2020 full of optimism, as everything pointed to a year of luxury. Having resumed the path of sustained growth, despite the ongoing turbulence in our country’s political environment, we could never have imagined what lay ahead. The unthinkable happened. At the beginning of our journey, we were caught off guard, and here we are now, a bit dazed, trying to find our way back. All the planning we had done was put aside, and in the whirlwind of events, we are working to rediscover ourselves.

Despite this, we are seeking a minimum of rationality in the current context and evaluating medium-term possibilities in our market, both for corrugated cardboard and paper bags. We can now conclude that we will see quite different performances across the sectors in our client portfolio. Some sectors, such as food, hygiene, and cleaning, have maintained consumption levels close to the new normal, not far from pre-pandemic levels. However, others, particularly those in the non-essential and durable goods segments, will certainly face severe disruptions in their order books, resulting in significant deficits in our planned production. In the paper bag sector, our strong dependence on the construction market is expected to lead to substantial drops in volume, as it will take time for this sector to return to normal.

We are exploring all options to minimize the impacts: new markets, new products, new sales channels—any alternatives that can help mitigate the sharp decline we’re currently experiencing.

Companies like ours, which have been established in the market for a long time, are always somewhat prepared to face crises. However, this one is unlike any other. It presents a greater challenge and, due to its complexity, will force many businesses to close their doors. But we are determined to survive. Whether through the strength of our product or the determination of the people in our teams, we will be stronger after all this. We will be ready to take advantage of the opportunities that others leave behind once the crisis passes.

We remain determined and confident in our potential. We are a company built for success, and challenges like this are part of the journey of great winners and future leaders.

Gilmar Luiz Maffei
Sales Superintendence – Trombini Packaging S/A