Suzano’s Q3 Profit Soars to R$3.24 Billion, Beating Forecasts

Suzano, Brazil’s pulp and paper powerhouse, has stunned the market with its exceptional third-quarter performance in 2024. The company’s financial results have surpassed all expectations, marking a significant comeback from previous challenges.

The São Paulo-based firm reported a net profit of R$3.24 billion ($578.6 million) for the quarter. This impressive figure represents a complete reversal from the R$729 million loss recorded in the same period last year. Analysts had predicted a profit of R$2.72 billion ($485.7 million), but Suzano exceeded these forecasts.

Suzano’s success story extends beyond its bottom line. The company’s net revenue reached R$12.7 billion ($2.27 billion) in Q3 2024. This amount signifies a 7% increase from the previous quarter and a substantial 37% year-over-year growth. Notably, 79% of this revenue came from international markets, highlighting Suzano’s global reach.

The company’s operational metrics also showed remarkable improvement. Pulp sales climbed to 2.6 million tons, reflecting a 6% increase compared to the same quarter in 2023. Paper sales followed suit, rising by 9% to reach 360,000 tons. In total, Suzano’s sales volume hit 3 million tons, marking a 6% year-over-year growth.

Suzano’s financial indicators further underscore its strong performance. The company’s adjusted EBITDA soared to R$6.52 billion ($1.16 billion). This figure represents a 4% increase from the previous quarter and an impressive 77% jump year-over-year. The EBITDA margin stood at a robust 53%, slightly down from 55% in Q2 but up significantly from 40% in Q3 2023.

Several market factors contributed to Suzano’s stellar results. The average net price of pulp rose to $671 per ton, a 23% increase from Q3 2023. In Brazilian reais, the average net price reached R$3,720 per ton, reflecting a 40% increase. This growth was partly due to the appreciation of the US dollar against the Brazilian real.

Suzano’s Q3 Profit Soars to R$3.24 Billion, Beating Forecasts

Suzano’s financial position also showed signs of improvement. As of September 2024, the company’s gross debt stood at R$87.8 billion ($15.68 billion). Importantly, 91% of these maturities are concentrated in the long term, providing Suzano with financial stability. The company’s leverage ratio, measured by net debt to adjusted EBITDA in dollars over 12 months, improved to 3.1 times from 3.2 times in the previous quarter.

The start-up of the Cerrado Project in July 2024 played a crucial role in Suzano’s success. This new venture is expected to boost the company’s production capacity significantly. Suzano also reported increased investments in lands, forests, and new projects. These initiatives include a tissue factory and a new biomass boiler in Aracruz, Espírito Santo.

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