Brazilian pulp and tissue giant Suzano has reported increased operational efficiency with sales of 3.6m tonnes of pulp and paper combined – up 20% on the same quarter last year – in its third quarter results.
It said the result was driven by operations at its Ribas do Rio Pardo pulp mill, and by the integration of paper production from assets acquired in America in October 2024.
The cash cost of pulp production (excluding downtime) was R$801 per tonne, a 7% reduction compared to 3Q24.
Suzano said the results reflected “the continuation of the downward trend in production costs and the ongoing improvement in structural competitiveness.”
Net revenue for the quarter totalled R$12.2bn, broadly flat year-on-yeaer.
Adjusted EBITDA totalled R$5.2bn and operating cash generation was R$3.4bn, a result it said of lower pulp prices and a weaker exchange rate for exports. Net profit totalled R$2bn.
Suzano Packaging also delivered its first positive Adjusted EBITDA from the US operations acquired in October 2024.
Beto Abreu, Chief Executive of Suzano, said: “Even in challenging market conditions, we continued to improve our competitiveness and we remain strongly cash generative, boosted by the exceptional efficiency of our new Ribas do Rio Pardo mill.
“We remain focused on further strengthening our competitiveness, deleveraging the company and unlocking value from the capital allocations made to date.
“The solid progress toward establishing the joint venture with Kimberly-Clark, along with the learnings and positive momentum from our packaging operations in the United States, indicate we are on the right path.”
