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Suzano Reports Strong First Quarter 2023 Results on Pulp Sales

Walter Schalka "Throughout 2022, Suzano took advantage of a strong cash generation as a result of a high pulp environment to advance its strategic agenda..." – Walter Schalka, CEO of Suzano.

April 28, 2023 - Suzano, the world's largest hardwood pulp producer, announced its financial statements for the first quarter of 2023 (1Q23).

  • Net revenues of R$11.3 billion, a 16% increase on 1Q22
  • Adjusted EBITDA of R$6.2 billion, a 20% increase on 1Q22
  • Operating cash generation of R$4.7 billion, a 21% increase on 1Q22
  • Pulp sales totaled 2.5 million tons, a 3% increase on 1Q22
  • Paper sales totaled 280 thousand tons, a 10% decrease on 1Q22
  • Cash production cost (excluding downtimes) increased by 8% during the quarter to R$937 per ton
  • Net income of R$5.2 billion

The start of the 2023 period has seen pulp prices significantly decline, reflecting the expectation of new market supply. Within this challenging context, Suzano was able to deliver solid results, demonstrating the company's ability to navigate on a more acid market scenario.

The quarterly results contributed to a flat net debt balance, even during company's largest investment cycle to date. Between January and March, Suzano invested R$3.7 billion, R$1.9 billion of which has been allocated to the construction of a pulp mill in the municipality of Ribas do Rio Pardo, Mato Grosso do Sul state. Between 2019 and 2022, the total capital expenditure in new projects, maintenance, modernization and others reached R$32.7 billion.

At the same time, Suzano's net debt to adjusted EBITDA leverage in US dollars fell from 2.0x at the end of 2022 to 1.9x at the end of 1Q23. Net debt totaled US$10.9 billion at the end of March.

CEO Comments

Walter Schalka, CEO of Suzano, said, "Throughout 2022, Suzano took advantage of a strong cash generation as a result of a high pulp environment to advance its strategic agenda while also preparing for a price correction cycle such as the one that we have seen at the start of this year. Due to our financial discipline and structural competitiveness, we remain well-placed to continue ahead with our planned investments, which will be the largest in our history."

Suzano has also launched its 2022 Sustainability Report and its Sustainability Center, a hub of resources dedicated exclusively to the company's sustainability aspects.

Suzano's complete first quarter 2023 financial report can be found on the company's website:

Suzano is the world's largest producer of hardwood pulp and the global leader in the innovation and production of renewable, bio-based materials for consumer and industrial use.

SOURCE: Suzano

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