Suzano announces first quarter results and Cerrado Project nears completion
May 09 2024 - 4:30PM
Business Wire
World’s largest single pulp production line is
set to commence operations in the coming weeks
Suzano, the world’s largest pulp producer, which
celebrates its centenary this year, announces its financial results
for the first quarter of 2024 (1Q24). The highlight of the period
is the progress of the Cerrado Project, the largest ever capital
investment project by the company. The new pulp mill, under
construction in the municipality of Ribas do Rio Pardo, Mato Grosso
do Sul state, is now 94% complete and will be operational in a few
weeks. It will be the largest single-line pulp mill in the
world.
With a total planned investment of R$22.2 billion, of which
R$19.1 billion has been deployed as of the end of April, the new
mill will have annual production capacity of 2.55 million tons of
pulp, used in the production of sanitary papers and sanitary pads,
printing & writing papers and packaging paper, among other
items.
Given the combined impact of the investment in the construction
of the mill and lower pulp prices in recent quarters, Suzano’s US
dollar leverage ended the quarter at 3.5 times, within the limits
established in the company’s policy.
“This is a transformational project in Suzano’s history and
marks a new and important cycle of value creation for the company.
With the new unit, Suzano celebrates its centenary even more
prepared to grow and benefit its stakeholders,” said Walter
Schalka, CEO of Suzano.
The results also reflect the recovery trend of international
pulp prices and stable production costs in relation to the previous
quarter, as well as seasonal effects on sales in the sector.
Suzano’s adjusted EBITDA totaled R$4.6 billion, while operating
cash generation came to R$2.5 billion. Net revenue in the quarter
was R$9.5 billion. Suzano registered net income of R$220 million.
Net debt ended the quarter at US$11.9 billion, including Suzano’s
share buyback program and interest payments on equity during the
quarter.
Cash cost of pulp production, excluding downtimes, ended the
quarter at R$812 per ton. Pulp sales totaled 2.4 million tons,
while paper sales totaled 313,000 tons.
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suzano@hawthornadvisors.com
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