Friday, 29 October 2021 09:09

Suzano announces record operating cash generation of R$5.2 billion in 3Q 2021

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Driven by strong performance, Suzano’s leverage in USD drops to 2.7 times

Suzano, the global benchmark in the manufacture of bioproducts developed from eucalyptus, announces its results for the three months to September 2021 (3Q21), with operating cash generation reaching R$5.2 billion, a new quarterly record since Suzano’s inception following the merger between Suzano Papel e Celulose and Fibria in January 2019. During the 12-month period ended September 2021, operating cash generation totaled R$17 billion.

Adjusted EBITDA, another important indicator of the company's financial performance, reached a record R$6.3 billion in 3Q21. Due to the increase in adjusted EBITDA, combined with the fresh reduction in net debt to US$10.7 billion, ratio of net debt to EBITDA ended the quarter at 2.7 times in USD. With this, the company concludes its financial deleveraging cycle after the merger with Fibria and kickstarts a new phase of expansion with the construction of a pulp mill in Ribas do Rio Pardo, Mato Grosso do Sul state.

2021 06 28 093020Suzano’s strong results in recent quarters underline its competitive strength and cash generation potential. “This new quarterly record was achieved in spite of inflationary pressures - especially on commodities, and the logistics challenges that have marked international trade in 2021,” says Walter Schalka, CEO of Suzano.

The 3Q21 results were driven by strong sales volume across all businesses. In the pulp segment, sales volume totaled 2.7 million tons. The company’s inventory levels remain below the desirable level from the operational standpoint. In the paper segment, sales volume totaled 337 thousand tons, higher than in the 3Q19, before the pandemic. Suzano’s net revenue came to R$10.8 billion in the period from July to September.

In the last line of the balance sheet, the weakening of BRL against USD at the end of the quarter was chiefly responsible for the negative net result of R$959 million. This is a noncash effect and is primarily explained by the balance of dollar-denominated debt when translated into Brazilian real.

Suzano announced two important developments after the end of Q3. As part of its ESG agenda, the company announced its revised carbon removal target, bringing its goal to remove 40 million tons of carbon from the atmosphere by 2030 forward to 2025. On the expansion front, the company today announced that its Board of Directors has approved the construction of a mill in Ribas do Rio Pardo. Details of the project will be disclosed on November 5.

“Our strategy remains focused on long-term results and on creating value for all our stakeholders. With regard to discussions on the climate crisis, since we understand that effective measures in the short term are critical, Suzano reiterates its commitment to the planet and to people by bringing forward its carbon removal target. By announcing our new goal, we hope that governments, companies and society also revisit their commitments so that COP26 becomes a strategic milestone for the advancement of a new low-carbon economy,” says Schalka.

About Suzano

Suzano is a global reference in developing sustainable and innovative solutions from renewable sources, guided by its purpose of renewing life inspired by trees. It is the world’s leading eucalyptus pulp producer and one of Latin America’s largest paper producers, playing a part in the lives of over 2 billion people from its 11 mills across Brazil and the joint operation Veracel. The company, whose history for over 97 years, has an installed capacity of 10.9 million tons of market pulp and 1.4 million tons of paper a year, and exports to more than 100 countries. Its operations are based on Innovability - Innovation at the service of Sustainability - and on the highest levels of social, environmental and corporate governance practices, and its shares are traded on stock exchanges in Brazil and the United States. For more information, visit www.suzano.com.br/en/

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