Suzano Reports Fourth Quarter 2024 Results; Ribas Performance Drives Record Pulp Sales

The year 2024 was marked by significant advancements in the Company's strategy, including the acquisition of new businesses and the start-up of the new pulp mill in Ribas do Rio Pardo.

Feb. 12, 2025 - Suzano today announced its consolidated results for the fourth quarter of 2024.

HIGHLIGHTS

• Pulp sales of 3,284 thousand tons (19% vs. 4Q23).
• Paper sales¹ of 430 thousand tons (11% vs. 4Q23).
• Adjusted EBITDA² and Operating cash generation³: R$6.5 billion and R$4.8 billion, respectively.
• Adjusted EBITDA² /ton from pulp of R$1,745/ton (28% vs. 4Q23).
• Adjusted EBITDA²/ton from paper of R$1,746/ton (-10% vs. 4Q23).
• Average net pulp price in export market: US$583/ton (2% vs. 4Q23).
• Average net paper price¹ of R$6,926/ton (3% vs. 4Q23).
• Pulp cash cost ex-downtime of R$807/ton (-1% vs. 4Q23).
• Leverage of 2.9 times in USD and 3.3 times in BRL.
• Completion of the learning curve of the Ribas do Rio Pardo unit.

¹ Considers the results of the Consumer Goods Unit (tissue) and the results of the months of Oct/24 and Nov/24 of the operation of the Suzano Packaging US Unit (Pine Bluff and Waynesville).

² Excluding non-recurring items.

³ Considers Adjusted EBITDA less sustaining capex (cash basis).

PaperAge editor's note: Suzano on July 21, 2024 started operations at its new pulp mill in Ribas do Rio Pardo, located in the state of Mato Grosso do Sul, Brazil. The new pulp mill has the capacity to produce 2.55 million tons per year of eucalyptus pulp.

EXECUTIVE SUMMARY

The year 2024 was marked by significant advancements in the Company's strategy, including the acquisition of new businesses and the start-up of the new pulp mill in Ribas do Rio Pardo and the conclusion of its learning curve as early as December, anticipating the initial nine-month forecast.

Regarding the performance of the pulp business unit in the last quarter of the year, base prices in China fell by 15% until the end of November (vs. the 3Q24 average), but it has been stable after this period.

The quarter was also marked once again by the significant appreciation of the average USD against the average BRL and the increase in sales volume, both factors offsetting the decline in the average net pulp price.

The cash production cost (excluding the effect of scheduled maintenance downtime) was 7% lower than in 3Q24, also benefited from the gradual stabilization of production at the Ribas do Rio Pardo unit. Therefore, adjusted EBITDA from pulp remained stable compared to 3Q24, but increased 53% compared to 4Q23.

In the paper business unit, adjusted EBITDA declined in 4Q24 vs. 3Q24 (-9%), but remained stable in relation to 4Q23, in which the Company concluded the acquisitions of the Pine Bluff and Waynesville units (Suzano Packaging US — as previously disclosed to the market).

Finally, consolidated adjusted EBITDA totaled R$6.5 billion in 4Q24, ending the year at R$23.8 billion, representing an increase of 31% when compared to 2023. Operating cash flow reached R$4.8 billion in the quarter and R$16.2 billion in the year (+40% vs. 2023).

As for financial management, net debt in USD was US$12.8 billion, stable in relation to the previous quarter. On the other hand, leverage in USD experienced another decline, to 2.9 times, mainly explained by the increase in Adjusted EBITDA in the last 12 months, remaining fully within the limit of the Company's financial debt policy.

Suzano's complete Fourth Quarter 2024 Earnings Release is available in English (PDF) and in Portuguese (PDF).

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

SOURCE: Suzano