Suzano S.A. announces its 2Q20 results

Suzano S.A. (B3: SUZB3 | NYSE: SUZ), one of the world’s largest integrated pulp and paper producers, announces today its consolidated results for the second quarter of 2020 (2Q20).
HIGHLIGHTS
• Pulp sales of 2,778 thousand tons (+25% vs. 2Q19).
• Pulp inventory reduction of approximately 220 thousand tons.
• Paper sales of 235 thousand tons (-22% vs. 2Q19).
• Adjusted EBITDA1 and Operating cash generation² of R$4.2 billion and R$3.4 billion, respectively.
• Adjusted EBITDA1 /ton3 from pulp of R$1,391/ton (+7% vs. 2Q19).
• Adjusted EBITDA1 /ton4 from paper of R$1,348/ton (+11% vs. 2Q19).
• Average net pulp price – Export Market: US$470/t (-25% vs. 2Q19).
• Average net paper price5 of R$4,330/ton (+7% vs. 2Q19).
• Pulp cash cost ex-downtime of R$599/ton (-14% vs. 2Q19).
• Capture of operating synergies in line with planning.

The quarter was marked by the continued effects of the Covid-19 pandemic on the Company’s business environment. In this scenario, Suzano’s focus throughout the second quarter remained on taking preventive and mitigation measures to protect people and society, while also ensuring business continuity. Considering the donations and other expenditure on initiatives aimed at fighting the new coronavirus, the Company’s investments totaled R$75 million until the end of June.

Suzano once again showed its resilience to overcome the challenges in a highly unpredictable market scenario resulting from the global situation. In the pulp business, the strong sales volume further reduced inventories, while the improved production cash cost despite exchange rate pressures underscored the continued gains in structural competitiveness, which in turn, was driven by the synergies obtained from the merger with Fibria. The paper business’ performance was boosted by exports, though affected by the record slump in demand on account of the pandemic, especially in the printing & writing segment. The combination of strong operating performance and the average depreciation of BRL against the USD fueled the 38% growth in Adjusted EBITDA in relation to the prior quarter, to reach R$4.2 billion.

As for financial management, in the second quarter, the Company reduced its net debt in USD and its leverage, measured by net debt/Adjusted EBITDA in the last twelve months. Its liquidity position remained solid, representing zero refinancing risk until 2022. Suzano remains focused on its financial discipline, as evident from its clear and consistent policies over time, and believes that it diligently plays its role of generating and sharing value in the long term.
more detail at: https://s1.q4cdn.com/987436133/files/doc_financials/2020/q2/Release-de-Resultados_2T20_vFinal-EN-US-CVM.pdf

Related Posts

EAM Expansion Will Position Domtar as a Leading Nonwovens Provider

Domtar leaders, along with numerous Georgia state and local officials, recently broke ground to celebrate the expansion of our Jesup, Georgia-based Engineered Absorbent Materials (EAM)* facility. The project will add a large-scale airlaid production line to the facility, making Domtar a leading nonwovens provider. “This project is an integral part of our long-term strategy to grow our position as a leading global absorbent materials and technology business, offering our customers both fluff pulp and airlaid nonwoven materials,” said Domtar President & CEO John Williams about Domtar’s goal to become a leading nonwovens provider. “Combining EAM’s expertise with our world-class fluff pulp business will allow us to deliver value to our customers, and Domtar, for many years to come.” “When it comes to absorbent hygiene products, what you can’t see is often the most important part,” said Lewis Fix, Domtar vice president, commercial pulp and airlaid. “We design and manufacture customizable, thin and flexible airlaid and laminate materials that keep customers comfortable and dry. Manufacturers incorporate these high-performance materials into a wide range of products sold under the NovaThin® and NovaZorb® brands.”

Antti Koulumies to lead UPM Forest and UPM Timber and Sauli Brander to lead UPM Global Forest Affairs

Antti Koulumies, M.Sc. (Eng.), has been appointed Senior Vice President, Timber and Forest. Koulumies will take the leadership of UPM Forest and continue to lead UPM Timber. The current leader of UPM Forest Sauli Brander, B.Sc. (Eng.), eMBA, has been appointed Vice President, UPM Global Forest Affairs. He will focus on global forest advocacy as well as global forestry themes, such as climate-positive forestry and biodiversity. Both appointments will take effect on 1 September 2023. Koulumies and Brander will continue to report to Bernd Eikens, Executive Vice President, UPM Fibres, and they will also continue as members of UPM Fibres business area management team.

Global Water Technologies Leader Solenis Chooses Delaware for $40M Expansion

Delaware-based global water technologies leader Solenis has chosen its hometown of Wilmington as the site for a $40 million research and development expansion. In response to increasing market demand for its sustainability-focused products and expertise and with an eye toward long-term growth, Solenis will expand its R&D operations with a move to the 100,000-square-foot Building 713 at Chestnut Run Innovation and Science Park (CRISP). CRISP is a former DuPont campus that MRA Group is developing into a hub for a range of life sciences and advanced chemical companies. The new CRISP facility will provide Solenis with 20,000 square feet more lab space than the company currently has at its existing R&D center on Ashland’s Wilmington campus. In addition to more space, the larger, upgraded site will allow Solenis to add up to 46 new highly skilled Delaware jobs — including lab technicians, scientists and R&D supervisors — within the next three years.
Back To Top
×Close search
Search