Suzano S.A. Reports Record Production and Revenue Growth in 2024
- Suzano S.A. achieved record sales of 12.3 million tonnes of pulp and paper, a 7% increase from 2023.
- The company reported net revenues of R$47.4 billion, a 19% rise, with adjusted EBITDA increasing by 31%.
- Suzano invested R$17.1 billion in 2024, focusing on sustainability and operational enhancements, including a new pulp production line.
Suzano S.A. Achieves Record Production and Revenue Milestones in 2024
Suzano S.A., the world’s leading pulp producer, announces remarkable results for the fourth quarter and the entirety of 2024, showcasing its robust operational capabilities and strategic growth initiatives. The company records an unprecedented sales volume of 12.3 million tonnes of pulp and paper, reflecting a 7% increase from the previous year. This surge is significantly attributed to the successful launch of its new pulp mill in Ribas do Rio Pardo, located in Mato Grosso do Sul, and the acquisition of U.S. paperboard mills. These developments not only enhance Suzano's production capacity but also solidify its position as a key player in the global pulp and paper market.
The financial performance of Suzano is equally impressive, with net revenues climbing to R$47.4 billion, a 19% rise compared to 2023. The adjusted EBITDA experiences a notable increase of 31%, reaching R$23.8 billion, while operational cash generation rises by 40% to R$16.2 billion. Despite facing a net loss of R$6.7 billion resulting from accounting adjustments linked to U.S. dollar-denominated debt—an issue that does not impact immediate cash flow—the company maintains a strong financial footing. CEO Beto Abreu emphasizes the disciplined approach to capital allocation, which has led to a reduction in net leverage from 3.1 times in December 2023 to 2.9 times by the end of 2024.
In line with its long-term strategic vision, Suzano invests R$17.1 billion in 2024, with R$4.5 billion specifically allocated to the Cerrado Project, which features the largest single pulp production line that commenced operations in July. This line not only exceeded expectations by completing its operational learning curve in under six months but also contributed to a 6% decrease in cash costs to R$828 per tonne. As part of its centenary celebration, Suzano hires 56,000 individuals and commits to investing up to US$100 million in sustainability initiatives over the next decade, collaborating with renowned institutions like the University of Cambridge and the International Union for Conservation of Nature (IUCN) to bolster global conservation efforts.
Suzano’s strategic initiatives also include a R$2.8 billion share buyback program and R$1.5 billion distributed in interest on equity to shareholders. These measures reflect the company’s commitment to returning value to its investors while simultaneously enhancing its operational capabilities. With a focus on innovation and sustainability, Suzano is well-positioned to navigate the evolving landscape of the global pulp and paper industry, ensuring its leadership and resilience in the market for years to come.