Suzano reports record Adjusted EBITDA of R$8.6 billion in the third quarter of 2022

Rhea-AI Summary

Suzano, the world's leading hardwood pulp producer, reported record earnings for the third quarter of 2022, with R$14.2 billion in net revenues, a 32% increase compared to 3Q21. Adjusted EBITDA rose to R$8.6 billion, up 36% year-over-year. Net income reached R$5.4 billion, a stark recovery from a net loss of R$959 million in the previous year. Pulp sales increased by 5% to 2.8 million tons, while paper sales fell by 2%. The firm also revealed plans for a R$16.1 billion capital expenditure and ongoing share repurchase initiatives.

Positive

• Net revenues increased by 32% to R$14.2 billion.
• Adjusted EBITDA rose 36% to R$8.6 billion.
• Net income transitioned to R$5.4 billion from a net loss of R$959 million.
• Pulp sales grew by 5% to 2.8 million tons.

Negative

• Paper sales declined by 2% to 331,000 tons.
• Operating costs increased by 3% to R$883/ton.

Results driven by higher global pulp prices, increasing sales volume and a favourable exchange rate

NEW YORK & SÃO PAULO--(BUSINESS WIRE)-- Suzano, the world’s largest hardwood pulp producer, announces record quarterly results for the third quarter of 2022 (3Q22).

• Net revenues R$14.2 billion, an 32% increase on 3Q21
• Adjusted EBITDA of $8.6 billion, a 36% increase on 3Q21
• Operating cash generation of R$7.2 billion, an 37% increase on 3Q21
• Net income of R$5.4 billion versus a net loss of R$959 million in 3Q21
• Strong pulp volumes during the quarter, while paper sales declined marginally
  • Pulp sales totalled 2.8 million tons, a 5% increase on 3Q21
  • Paper sales totalled 331,000 tons, a 2% decline on 3Q21
• Operating costs excluding downtime, were R$883/ton, an increase of 3% on 2Q22

These strong quarterly results mainly reflect Suzano’s continued operational excellence and is supported by higher global pulp prices, increased sales volume and a favourable exchange rate. While Suzano’s revenues were positively impacted by the FX rate during the period, the company’s operating cash generation demonstrates strong resilience to rising input costs. As a result, the ratio of net debt to adjusted EBITDA ended the quarter at 2.1 times in US dollars, compared to 2.3 times at the end of 2Q22.

Walter Schalka, CEO of Suzano, commented:

“I am very grateful to our workforce’s efforts which has helped deliver another successful and record-breaking quarter, supported of course by favourable market conditions. The cash generated throughout the period will allow us to continue executing on our ambitious long-term capital allocation strategy.”

Since the beginning of the year to end of September 2022, Suzano invested R$11.2 billion. This falls in line with Suzano’s full year 2022 capital expenditure guidance of R$16.1 billion. Moreover, the company has recently launched a third share repurchase programme and announced the acquisition of Kimberly-Clark’s tissue business in Brazil.

These initiatives are in addition to others rolled out this year, including the distribution of R$1.8 billion as dividends to shareholders, a R$2 billion investment to acquire forestry assets, the disbursement of R$1.9 billion in share repurchase programmes, the intensification of environmental and social initiatives to fulfil its Commitments to renewing life, the creation of Suzano Ventures, and the construction of a textile fibre plant in Finland in partnership with Spinnova.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221027006180/en/

Hawthorn Advisors

Jamie Plotnek

suzano@hawthornadvisors.com

Source: Suzano

FAQ

What were Suzano's net revenues for the third quarter of 2022?

Suzano reported net revenues of R$14.2 billion for the third quarter of 2022.

How much did Suzano's adjusted EBITDA increase in 3Q22?

Adjusted EBITDA increased by 36% to R$8.6 billion in the third quarter of 2022.

What is the net income reported by Suzano for 3Q22?

Suzano reported a net income of R$5.4 billion in the third quarter of 2022.

Did Suzano experience any changes in pulp and paper sales in 3Q22?

Pulp sales increased by 5% to 2.8 million tons, while paper sales declined by 2% to 331,000 tons.

What capital expenditure guidance did Suzano provide for the full year 2022?

Suzano's full year 2022 capital expenditure guidance is R$16.1 billion.