São Paulo, October 26, 2023. Suzano S.A. (B3:SUZB5 | NYSE: SUZ), one of the world’s largest integrated pulp and paper producers, announces today its consolidated results for the third quarter of 2023 (3Q23).
HIGHLIGHTS
- Pulp sales of 2,486 thousand tons (-11% vs. 3Q22).
- Paper sales1 of 331 thousand tons (stable vs. 3Q22).
- Adjusted EBITDA2 and Operating cash generation3 : R$3.7 billion and R$1.9 billion, respectively.
- Adjusted EBITDA2/ton from pulp of R$1,172/ton (-57% vs. 3Q22).
- Adjusted EBITDA2/ton from paper of R$2,366/ton (-16% vs. 3Q22).
- Average net pulp price in export market: US$547/ton (-33% vs. 3Q22).
- Average net paper price1 of R$7,085/ton (+3% vs. 3Q22).
- Pulp cash cost ex-downtime of R$861/ton (-2% vs. 3Q22).
- Leverage of 2.7 times in USD and 2.6 times in BRL.
- Cerrado Project completes 78% of physical progress and 68% of financial progress.
Despite the drop in average net pulp price, the third quarter of 2023 was marked by improved market sentiment, mainly due to the significant growth in demand in China. The evolution of fundamentals sustained a sequence of price increases which, however, are not yet fully reflected in the 3Q23 results. In this context, lower prices combined with practically stable volumes led to the reduction in adjusted EBITDA in this segment. Cash cost of production excluding scheduled maintenance downtime decreased once again, mainly due to lower consumption and lower input prices. The paper business unit posted resilient results in the domestic market; however, the decline in export market prices was the main reason for the decline in EBITDA per ton during the period. Consolidated adjusted EBITDA in the quarter came to R$3.7 billion, while operating cash flow reached R$1.9 billion.
Source: Suzano
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