Brazilian pulp and paper manufacturer Suzano has reported an increased net revenue of R$13.3bn, up 16% year-on-year, as sales of 3.7m tons of pulp and paper increased by 28%.
The company said the increase mainly reflected “the strong operational contribution” of the new Ribas do Rio Pardo pulp mill, following the start-up of production in July 2024.
It said the expansion of pulp production capacity in Brazil, combined with the contribution to paper sales from the mills recently acquired in the United States, and favourable FX rates, mitigated the impact on net revenue of lower pulp prices in the global market compared to the same time a year earlier.
As a result, Suzano’s adjusted EBITDA reached R$6.1bn and operating cash generation totalled R$4.1 billion.
Net profit totalled R$5.0bn positively impacted by the accounting impact of US dollar denominated debt and hedging operations translating into Brazilian Real.
Beto Abreu, Suzano Chief Executive, said: “We have just marked the first year of our new pulp mill in Ribas do Rio Pardo, whose strong operational performance has already strengthened our cost competitiveness.
“At the same time, we continued to execute on our long-term strategy of value-accretive growth, announcing our landmark joint venture with Kimberly-Clark.
“We will remain disciplined and focused on capturing the potential economic gains we believe exist in the new joint venture and on further enhancing our competitiveness in the coming years.”
Suzano to curb pulp production in “challenging pulp market environment”
Elsewhere, Suzano has also announced it will reduce its market pulp production by 3.5% over the next 12-month operational cycle.
It said the decision is based on the assessment that “such production volume would not generate adequate returns for the company, given a more challenging pulp market environment.”
