Suzano’s Resilience Shines Through Record Revenue as Dollar-Driven Losses Test Financial Discipline

On February 12, 2025, Suzano S.A. announced its financial results for the fourth quarter of 2024 (4Q24) and full-year 2024. Suzano reported a net loss of R$6.737 billion ($1.17 billion) in 4Q24.

This figure reversed the net profit of R$4.515 billion ($785.61 million) recorded in 4Q23. The company attributed the loss to exchange rate impacts on debt and derivatives.

Suzano increased net revenue by 37% year-over-year to R$14.177 billion ($2.47 billion) in 4Q24. Pulp sales volumes grew by 19% as export revenues benefited from favorable currency effects.

The company raised full-year revenue by 19% to R$47.4 billion ($8.25 billion) in 2024. Adjusted EBITDA rose 44% year-over-year in 4Q24 to R$6.481 billion ($1.13 billion). For the full year, adjusted EBITDA reached R$23.8 billion ($4.15 billion) with a 31% annual increase.

Operational cash generation increased by 40% to R$16.2 billion ($2.82 billion) for the year. The Ribas do Rio Pardo mill enhanced production capacity and shortened learning curves.

This facility reduced pulp production costs by 6%, reaching R$828 per ton ($144.07 per ton) for the year. Suzano executed strategic investments and efficiency improvements at scale.

Suzano’s Performance Amid Currency Volatility

Currency volatility affected the company as the U.S. dollar appreciated by 18% against the Brazilian real. Export revenues improved due to stronger currency effects, yet debt servicing costs rose.

The company suffered a net financial loss of R$15.556 billion ($2.71 billion) in 4Q24 due to hedging and debt impacts. Global pulp prices suffered pressure amid oversupply concerns in key markets like China.

Benchmark prices fell by 15% before stabilizing at $550 per ton. Suzano maintained an export market pulp price of $583 per ton, a 2% increase. Suzano improved performance in the paper segment by increasing sales volumes by 11% to 430 thousand tons in 4Q24.

The average net paper price climbed 3% to R$6,926 per ton ($1,205.12 per ton). These results underscored diversified revenue streams and market adaptation. Suzano adhered to disciplined capital management this year. It invested R$17.1 billion ($2.98 billion) in various projects.

It reduced its net debt ratio in dollars from 3.1x to 2.9x and in Brazilian reais to 3.3x. The company executed a share buyback program of R$2.8 billion ($487.2 million). It paid R$1.5 billion ($261 million) in interest on equity.

Suzano plans to leverage its expanded capacity and improve cost efficiencies in early 2025. It anticipates further pulp price increases from recent announcements. High leverage and global volatility pose ongoing challenges for cost management.

Suzano’s 2024 performance reflects careful execution amid macroeconomic pressures. The company balances strong operational growth with financial discipline. It navigates a global marketplace that tests resilience and strategic planning.

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