Result underlines company's robust financial strength
despite a sharp increase in input costs and a strengthening of the Real
Suzano, one of the world’s largest
integrated pulp and paper producers, announces its first quarter results for
2022 (1Q22) with Adjusted EBITDA reaching R$ 5.1 billion, up 5% on the same period
last year. Operating cash generation, another important indicator of the
company's financial performance, reached R$ 3.9 billion, consistent with levels
seen this time last year.
Despite first quarter headwinds from rising input costs, such as
chemicals and fuels, and an appreciating Brazilian Real, the company continues to
invest in its production capacity with total disbursements of R$ 13.6 billion planned
Suzano continues to maintain healthy levels of indebtedness and
leverage, measured by the ratio of net debt to adjusted EBITDA which stood at
2.4 times (USD), an improvement on 3.8 times at this point last year. Net debt was
almost stable during the quarter (USD 10.5 billion), despite the growth in investments
and the dividend payment in January.
Pulp sales reached 2.4 million tons, driven by a higher concentration of
scheduled downtimes at Suzano's mills in 1Q22. Pulp cash costs reached R$ 868
per ton, an increase of 16% on the last quarter of 2021. The company’s pulp inventory
levels remained low due to strong demand in the quarter.
Paper sales totaled 312 thousand tons. Net revenue, including pulp and
paper sales, amounted to R$ 9.7 billion.
“We had a quarter of consistent cash generation, despite higher input costs
and the strengthening of the Real against the Dollar. These effects were partially
mitigated by higher prices in the international market, not completely
reflected in the results, and by the efficiency of our business model and the competence
of our team on the operational and commercial fronts. We continue to positively
advance our strategic priorities as
expected, with continued ESG progress and the transformational Cerrado project remaining
on time and on budget”, said Walter Schalka, CEO of Suzano, referring to the construction
of a pulp mill in Ribas do Rio Pardo, Mato Grosso do Sul state.
The exchange variation during the first quarter of 2022 led the company
to record a positive net result of R$ 10.3 billion on the bottom line of the balance