08:25 uur 29-10-2021

Suzano kondigt record operationele cash generatie aan van R$5,2 miljard in 3Q21

SÃO PAULO & NEW YORK–(BUSINESS WIRE)– Suzano, de wereldwijde benchmark in de productie van bioproducten die zijn ontwikkeld op basis van eucalyptus, maakt zijn resultaten bekend voor drie maanden tot september (3Q21), waarbij de operationele kasstroom R$5,2 miljard bereikt, een nieuw kwartaal record sinds de fusie met Fibria in januari 2019. De aangepaste EBITDA bereikte een record van R$ 6,3 miljard in 3Q21.

Als gevolg van de stijging van de aangepaste EBITDA, in combinatie met de nieuwe verlaging van de nettoschuld tot 10,7 miljard dollar, eindigde de verhouding tussen de nettoschuld en de EBITDA het kwartaal op 2,7 keer in USD. Hiermee beëindigt het bedrijf zijn financiële schuld afbouwcyclus na de fusie en start een nieuwe fase van expansie met de bouw van een pulpfabriek in Ribas do Rio Pardo, in de staat Mato Grosso do Sul.

Suzano announces record operating cash generation of R$5.2 billion in 3Q21

SÃO PAULO & NEW YORK–(BUSINESS WIRE)– Suzano, the global benchmark in the manufacture of bioproducts developed from eucalyptus, announces its results for the three months to September (3Q21), with operating cash generation reaching R$5.2 billion, a new quarterly record since the merger with Fibria in January 2019. Adjusted EBITDA reached a record of R$6.3 billion in 3Q21.

Due to the increase in adjusted EBITDA, combined with the fresh reduction in net debt to US$10.7 billion, ratio of net debt to EBITDA ended the quarter at 2.7 times in USD. With this, the company concludes its financial deleveraging cycle after the merger and kickstarts a new phase of expansion with the construction of a pulp mill in Ribas do Rio Pardo, Mato Grosso do Sul state.

Suzano’s strong results in recent quarters underline its competitive strength and cash generation potential. “This new quarterly record was achieved in spite of inflationary pressures, especially on commodities, and the logistics challenges that have marked international trade in 2021,” says Walter Schalka, CEO of Suzano.

The 3Q21 results were driven by strong sales volume. In the pulp segment, sales totaled 2.7 million tons. The company’s inventory levels remain below the desirable level from an operational standpoint. In the paper segment, sales volume totaled 337 thousand tons. Suzano’s net revenue came to R$10.8 billion in 3Q21.

In the bottom line, the weakening of BRL against USD at the end of the quarter was chiefly responsible for the negative net result of R$959 million. This is a noncash effect and is primarily explained by the balance of dollar-denominated debt when translated into Brazilian real.

Suzano has announced two important developments since the end of 3Q21. As part of its ESG agenda, the company revised its carbon removal target, bringing its goal to remove 40 million tons of carbon from the atmosphere by 2030 forward to 2025. On the expansion front, the company announced that its Board of Directors has approved the construction of a mill in Ribas do Rio Pardo. Details of the project will be disclosed on November 5.

“Our strategy remains focused on long-term results and on creating value for all our stakeholders. By announcing our new carbon removal target, we hope to encourage governments and companies to revisit their commitments so that COP26 becomes a strategic milestone for the advancement of a new low-carbon economy,” says Schalka.


Hawthorn Advisors
Zinka MacHale


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