SAO PAULO–(BUSINESS WIRE)–Suzano, the world’s largest pulp producer, announces its third quarter results for 2024 (3Q24) with operating cash generation reaching R$4.4 billion, up 132% on the same period last year. Adjusted EBITDA totaled R$6.5 billion, a 77% increase over 3Q23. Net revenue reached R$12.3 billion, the highest quarterly performance since 2022, and a rise of 37% on the same quarter last year.
The strong third quarter results were mainly driven by increased sales volume and higher average selling prices of exported products, with a favorable contribution from exchange rates. Pulp sales totaled 2.6 million tonnes, a rise of 6% on the same period last year. Paper sales reached 360,000 tonnes in the third quarter, a 9% increase over 3Q23.
The quarterly results also reflect the early positive contribution from the new mill in the municipality of Ribas do Rio Pardo, Mato Grosso do Sul state, which commenced operations on July 21st 2024. The new mill ended the quarter at 80% of its production capacity (learning curve), significantly ahead of initial expectations to reach 71% capacity. Suzano’s overall cash cost of pulp production increased 4% in the third quarter to R$863 per tonne (excluding downtime).
Improved adjusted EBITDA in the last 12 months has led to an improvement in the company’s leverage position with the ratio of net debt to adjusted EBITDA in US dollars decreasing from 3.2 times at the end of 2Q24 to 3.1 times at the end of 3Q24. Similarly, these strong operational results and the positive financial result with the lower FX rate at the end of the period contributed to a net income of R$3.2 billion in the quarter.
During 3Q24, Suzano completed the acquisition of a 15% stake in the Austrian wood fibre company Lenzing for EUR230 million and forestry assets for R$2.1 billion. On October 1st, Suzano concluded the purchase from Pactiv Evergreen of two US-based mills in a transaction worth U$110 million.
Beto Abreu, CEO of Suzano, commented:
“The third quarter of this year has seen Suzano make substantial progress in a number of strategic areas. We are very excited about the initial performance of our new mill in Ribas do Rio Pardo, our sales volumes were strong, our leverage continued to improve, and we advanced our international growth with progressing our acquisitions in the USA and Austria. The progress this quarter reinforces our conviction that the company, which celebrated its 100th anniversary this year, is very well prepared for the future”.
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