Eldorado’s record profit totals BRL 3.53 billion in 2022

Pulp producer Eldorado Brasil ended 2022 with a record net profit of BRL 3.53 billion, a result four times bigger than that recorded in 2021. The company’s performance benefited from high fiber prices in the international market and for its high productivity – the company reached 16.5 million tons of pulp produced in the period of 10 years, advancing the production that was expected to be achieved in 11 years.

The company’s net revenue increased 24%, reaching BRL 7.54 billion, the highest in its history. Eldorado adjusted Ebitda reached a historic level of BRL 4.56 billion, up 30.4% compared to previous year.

Eldorado also achieved record production, with 1.832 million tons of eucalyptus pulp, 22% above the original capacity of its manufacturing unit, which would have been 1.5 million tons.

However, sales remained at a level of stability, totaling 1.759 million tons in 2022, compared to 1.755 million tons in 2021, sustaining normal inventory levels.

In December, the company’s net debt fell from BRL 5.2 billion at the end of 2021 to BRL 2.98 billion. With the debt reduction and Ebitda growth, Eldorado’s financial leverage fell to 0.7 times, compared to 1.5 times a year earlier.

While the company has presented records of financial performance and productivity, the dispute between the partners J&F Investimentos and Paper Excellence signaled to be close to be concluded a few times during the last year, although nothing has come to be definitive so far.