– Operating cash generation of R$906 million in 3Q17, increasing 78.6% from R$507 million in 3Q16;
– Adjusted EBITDA of R$1.186 billion in 3Q17 and R$3.190 billion in 9M17;
– Pulp and paper sales volume of 3.5 million tons in 9M17.
São Paulo, October 27, 2017 – We announced our financial results for the third quarter of 2017. The highlights include Operating Cash Generation of R$906 million, up 78.6% from the same period last year, and Adjusted EBITDA of R$1.186 billion, an increase of 54.5%. Adjusted EBITDA margin stood at 45.7%, expanding from 35.3% in the third quarter of 2016, while Return On Invested Capital (ROIC) reached 13.0%, supported by better pulp prices, disciplined cost control and the ongoing focus on productivity gains.
In addition to the strong operating and financial results, our quarter was marked by other important corporate advances, noted our CEO Walter Schalka. During the period, our company was listed on the Novo Mercado special segment of the São Paulo Stock Exchange (B3), with all its preferred shares converted into common shares at the ratio of one preferred share to one common share, in an important demonstration of the controlling shareholders’ confidence in our future.
Other highlights in the quarter include the conclusion of the debottlenecking project at the Imperatriz Unit, in Maranhão state, which increased the plant’s annual production capacity to 1.65 million tons, and the startup of tissue production (sanitary papers) at the Mucuri Unit, in Bahia state. The entry into the tissue segment was accompanied by the creation of the Consumer Goods Department and the hiring of executives to lead the team.
We also carried out an internal organization in the quarter to optimize our operations and support the growth of each business area. “The quarter was marked by the successful conclusion of many important projects to prepare Suzano Pulp & Paper for the future,” said Schalka.
Our company also continued to advance other expansion and productivity projects in the third quarter, in which it invested a total of R$508 million, with R$280 million allocated to industrial and forestry maintenance and R$228 million to Structural Competitiveness and Adjacent Business projects as well as other initiatives, such as the retrofitting of the Wastewater Treatment Plant at the Mucuri Unit. In the whole of the year, investments should come to R$1.8 billion.
Our operating cash generation (Adjusted EBITDA less Maintenance Capex) amounted to R$2.438 billion in the period from January to September, advancing 14.3% in the year-ago period, supported by the Adjusted EBITDA of R$3.190 billion in the nine-month period. Pulp and paper sales in the period came to 3.5 million tons, slightly above the sales volume registered in the same period of 2016. Meanwhile, cash cost excluding downtime stood at R$594 per ton, a reduction of 7.6% from a year earlier.
We reported net income of R$800.9 million in 3Q17 and of R$1.45 billion in 9M17. At the end of the quarter, Suzano Paper’s market capitalization stood at R$20.2 billion.