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

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