Suzano has released its quarterly results for both the Q4 and FY 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 bn in 2024, 19% higher than in 2023. Adjusted EBITDA grew 31%, to R$23.8 bn, while operational cash generation increased 40%, reaching R$16.2 bn. Suzano reported a net loss of R$6.7 bn 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 bn in 2024, with R$4.5 bn specifically allocated to the new mill – the Cerrado Project – in Ribas do Rio Pardo. 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, 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.”
