Suzano, the world’s largest pulp producer, announces its quarterly results for both the final quarter (4Q24) and the full year (2024). Pulp and paper sales reached a new record of 12.3 million tonnes, rising 7% on 2023, mainly driven by the additional capacity from the new pulp mill in Ribas do Rio Pardo in Mato Grosso do Sul state. Further capacity from the recent acquisition of paperboard mills in the United States has also contributed to the record sales volume.

The higher sales volumes and favorable exchange rates boosting export revenues resulted in net revenues of R$47.4 billion in 2024, 19% higher than in 2023. Adjusted EBITDA grew 31%, to R$23.8 billion, while operational cash generation increased 40%, reaching R$16.2 billion. Suzano reported a net loss of R$6.7 billion due to the accounting impact of US dollar denominated debt and hedging operations translating into Brazilian Real. There is no immediate cash impact of this accounting adjustment and the potential cash effect will only occur at debt and hedging maturity.

Suzano invested R$17.1 billion in 2024, with R$4.5 billion specifically allocated to the new mill - the Cerrado Project - in Ribas do Rio Pardo. The world's largest single pulp production line began operations on July 21 and completed its learning curve process in less than six months, well ahead of expectations and setting a record timeline in the industry's history. The new mill has also contributed to reducing Suzano's pulp cash cost by 6% to R$828/tonne in 2024 versus the prior year.

Beto Abreu, CEO of Suzano, commented:

“We successfully completed our Cerrado Project and made significant strides in our strategy, with the acquisition of assets in the U.S. and a stake in Lenzing, the Austria-based textiles business. Despite these investments, we ended 2024 with lower net leverage than the prior year, reflecting Suzano's discipline in capital allocation, operational competitiveness and financial strength”.

Suzano’s net leverage in U.S. dollars fell from 3.1 times in December 2023 to 2.9 times at the end of 2024, in line with Suzano’s commitment to execute its largest-ever capital investment project within the limits established in the company’s policy. In addition to maintaining robust investment plans, Suzano allocated R$2.8 billion to fund its share buyback program and paying a total of R$1.5 billion as interest on equity to its shareholders.

In the year of its centenary, Suzano reached the mark of 56,000 direct and indirect employees and embarked on an ambitious commitment to invest up to US$100 million over a ten-year period in initiatives focusing on research, knowledge generation and education for sustainability, in collaboration with renowned international institutions, including the University of Cambridge and the non-governmental organization IUCN, among others.

Suzano's central goal is to drive global efforts to protect and restore nature by developing expertise and leadership in sustainability, and accelerating research and education in conservation, climate change, and water resource management.

Hawthorn Advisors Jamie Plotnek suzano@hawthornadvisors.com

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