The record-high EBITDA and free cash flow were driven by favorable external factors and strong operating performance
SAO PAULO -- Suzano (NYSE:SUZ), the company resulting from the merger of Suzano Pulp & Paper and Fibria, announces today its results for the fourth quarter and fiscal year of 2018, which were the best ever in the company’s history. Because the reporting period ended prior to the consummation of the combination of the shareholder bases with Fibria, on January 14, 2019, the Financial Statements present exclusively the results of Suzano Pulp & Paper. Highlighting that Fibria also reported its annual financial results, which also include record-high figures, as well as pro-forma data* to present, based on the annual results of the two companies (which in 2018 were still operating independently), the combined figures and results of the new Suzano.
Pro-forma* net revenue in the year amounted to R$31.7 billion, advancing 42% on the prior year. Adjusted EBITDA and operating cash flow were R$16.4 billion and R$12.5 billion, respectively. These results, which were supported by the record-high results of both companies, were driven mainly by higher international pulp prices, the more favorable exchange rate for exports, the paper prices implemented in the period and the better operating performances of the business units.
The pro-forma figures*, that simulate the combined results of Suzano Pulp & Paper and Fibria as if it were a sole company on December 31, 2018, indicate production volume of 10.3 million tons of pulp and 1.3 million tons of paper. Both indicators represent increases of roughly 10% on the prior year and reinforce the vision of creating one of Brazil’s most valuable companies and one of the global pulp and paper industry’s most competitive players.
“We have already started building Suzano’s future by laying a foundation that will give it the capacity to create and share value consistently. Our teams are integrated in a single environment and we are already focused on capturing the competitiveness made possible by the merger of the two companies, while remaining attentive to our role as agents of transformation to build a better future for society and aware of the impact of our business on the daily lives of billions of our products consumers,” said Walter Schalka, CEO of Suzano.
The year of 2018 was marked by the announcement, on March 16, of the combination of Suzano Pulp & Paper and Fibria. The merger was approved by the shareholders of both companies, as well as by all applicable regulatory agencies in Brazil and abroad, with the latest approval coming from the European Commission, in November. The consummation of the merger began on January 3, 2019 and ended with the settlement of the transaction, on January 14, 2019.
During the approval process, Suzano concluded the process to list its ADRs on the New York Stock Exchange (NYSE) and raised funds to support the payment of the cash portion established in the agreement.
This year also brought important recognition for Suzano’s credit quality, management and workplace. The company obtained an investment grade rating (BBB-) with a stable outlook from Standard & Poor’s (S&P), which attests to its solidity and financial discipline.
Suzano also was the grand winner in the “Valor 1000” yearbook published by the newspaper Valor Econômico, and figured on the list of the Best Companies to Work For and the Best Companies to Launch a Career, both rankings compiled by the magazine Você S/A, and in the Global 2000 – World’s Best Employers, a ranking compiled by Forbes magazine.
*The pro-forma figures represent unaudited data and are based on assumptions considered reasonable by of Suzano Pulp & Paper and Fibria in light of the circumstance under which they were construed.