Suzano reports Adjusted EBITDA of R$6.3 billion in the second quarter of 2024
09 August 2024 - 8:00AM
Business Wire
Suzano, the world’s largest pulp producer, announces its
financial results for the second quarter of 2024 (2Q24).
Adjusted EBITDA totaled R$6.3 billion, a 60% increase on 2Q23,
reflecting higher pulp prices, favorable FX rates, increased sales
volume, and reduced production costs compared to the same period
last year. Operating cash generation totaled R$4.5 billion, the
strongest quarterly result since 1Q23, and net revenue came to
R$11.5 billion, the strongest quarterly result since 4Q22.
Pulp sales reached 2.5 million tonnes, while paper sales totaled
333,000 tonnes. The cash cost of pulp production, excluding
downtime, was R$828 per tonne. Suzano reported a net loss of R$3.8
billion due to the foreign exchange impact in the financial
results, with a non-cash impact until maturity of such financial
transactions.
Driven by the strong EBITDA performance, Suzano’s US dollar
leverage decreased from 3.5 times to 3.2 times, in line with
Suzano’s expectation to execute its largest-ever capital investment
project within the limits established in the company´s policy. As
of the end of June, Suzano had deployed 89% of the R$22.2 billion
total planned investment in the Cerrado Project, the world’s
largest single-line pulp mill.
Beto Abreu, CEO of Suzano, commented:
“The Cerrado Project’s startup represents a
significant milestone in Suzano´s century-long history and its
future capacity for value generation. With the lowest structural
cost across all our operations, the new mill will enhance our scale
and competitiveness in the pulp business. At the same time, we
continue to advance in other strategic avenues, including the
acquisition of industrial assets from Pactiv Evergreen and taking a
significant minority stake in Lenzing.”
Suzano’s new mill began operations on July 21 in the
municipality of Ribas do Rio Pardo, Mato Grosso do Sul state, with
an annual production capacity of 2.55 million tonnes. The mill´s
ramp-up process is expected to be completed in 2Q25.
Between June and July, Suzano also announced the acquisition of
a 15% stake in Lenzing, the Austria-based specialist in cellulose
fiber production for the textile industry, as well as the
acquisition from Pactiv Evergreen of two US-based mills that
manufacture liquid packaging board and cupstock.
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version on businesswire.com: https://www.businesswire.com/news/home/20240808569652/en/
Hawthorn Advisors Jamie Plotnek suzano@hawthornadvisors.com
Suzano (NYSE:SUZ)
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