Suzano Reports Record Operating Cash Generation of R$22.6 billion in 2022

Rhea-AI Summary

Suzano, the largest hardwood pulp producer globally, reported a 22% increase in FY22 net revenues, totaling R$49.8 billion. The company's adjusted EBITDA rose 20% to R$28.2 billion, with operating cash generation also up 20% to R$22.6 billion. Pulp sales remained steady at 10.6 million tons, while paper sales saw a 1% rise. Operating costs increased 28% per ton, reflecting global logistics challenges. Notably, the net debt to adjusted EBITDA ratio improved from 2.4x to 2.0x. The company plans to invest over R$18.5 billion in 2023 following significant CAPEX between 2019-2022.

Positive

• FY22 net revenues increased by 22% to R$49.8 billion.
• Adjusted EBITDA rose by 20% to R$28.2 billion.
• Operating cash generation grew 20% to R$22.6 billion.
• Net debt to adjusted EBITDA improved from 2.4x to 2.0x.
• Pulp and paper sales remained stable with minor increases.

Negative

• Operating costs increased 28% per ton, impacting margins.

SÃO PAULO & NEW YORK--(BUSINESS WIRE)-- Suzano, the world’s largest hardwood pulp producer, announces its financial statements for the full fiscal year of 2022.

• FY22 Net revenues of R$49.8 billion, a 22% increase on FY21
• FY22 Adjusted EBTIDA of R$28.2 billion, a 20% increase on FY21
• FY22 Operating cash generation of R$22.6 billion, a 20% increase on FY21
• FY22 Pulp sales totalled 10.6 million tons, in line with FY21
• FY22 Paper sales totalled 1.3 million tons, a 1% increase on FY21 sales volume
• FY22 Operating costs (excluding downtime) were R$855 per ton, a 28% increase on FY21

2022’s strong results reflect buoyant global pulp prices and pulp sales volume, which offset significant pressures from production costs and global logistics challenges experienced across the value chain. This stability in sales volume, combined with a favourable exchange rate and higher prices, supported record net revenues of R$49.8 billion.

Cash generated across the period supported Suzano’s deleveraging, despite an acceleration in CAPEX and long-term investments. The net debt to adjusted EBITDA ratio (US Dollars) fell from 2.4x in 2021 to 2.0x in 2022. On the bottom line, Suzano registered a net income of R$23.4 billion.

Walter Schalka, CEO of Suzano, said:

“Supported by our structural competitiveness and a positive price trend, Suzano has once again demonstrated its capacity to generate cash in an environment of sharp cost increases and against the largest investment cycle to date.”

After investing R$32.6 billion between 2019 and 2022, Suzano plans to invest over R$18.5 billion in 2023.

Other initiatives during 2022 included the completion of a port terminal in Maranhão state, ongoing modernisation advances of the Aracruz and Jacareí units and expansion of its forest bases, the launch of Suzano Ventures and Biomas (in partnership with five other companies), and advances in the construction of a textile fibre plant in Finland (via the Woodspin JV) in partnership with Spinnova. Suzano also announced the acquisition of Kimberly-Clark´s tissue business in Brazil, which is still pending approval by Brazil’s antitrust agency CADE. Finally, Suzano continued its capital allocation programme with a dividend distribution of R$4.2 billion and the disbursement of R$1.9 billion in various share repurchase programmes.

On a sustainability front, progress achieved towards Suzano’s 15 long-term targets (the Commitments to Renewing Life) will be detailed in Suzano’s Annual Sustainability Report, which will be published soon.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230228006428/en/

Hawthorn Advisors

suzano@hawthornadvisors.com

Source: Suzano

FAQ

What were Suzano's net revenues for FY22?

Suzano's net revenues for FY22 totaled R$49.8 billion, marking a 22% increase from FY21.

How much did Suzano's adjusted EBITDA grow in FY22?

Suzano's adjusted EBITDA grew by 20% in FY22, reaching R$28.2 billion.

What was Suzano's operating cash generation in FY22?

Operating cash generation for Suzano in FY22 was R$22.6 billion, reflecting a 20% increase.

What is Suzano's plan for capital investment in 2023?

Suzano plans to invest over R$18.5 billion in 2023.

How did Suzano's operating costs change in FY22?

Operating costs in FY22 increased by 28% per ton, reaching R$855 per ton.

What was Suzano's net income in FY22?

Suzano reported a net income of R$23.4 billion for FY22.