Pulp News

Eldorado breaks record and net revenue reaches R$1.6 billion in the third quarter

Compared to last year, revenue rose 40%; resulting in a net income of BRL 352 million

Eldorado Brasil released its third quarter results, which were driven by realized prices above the market average. The company achieved net revenue of R$1.6 billion, surpassing the record set in the previous quarter.

Compared to last year, revenue rose 40% and, in the quarterly comparison, the growth was 2%, despite the drop in production and sales in volume resulting from the scheduled stoppage at the plant in Três Lagoas (MS), Brazil, which occurs every 15 months.

The company produced 416,000 tonnes of pulp between July and September, representing a drop of 11% compared to the previous year and 10% compared to the second quarter. The company sold 408,000 tonnes, down 13% and 7%, respectively.

Adjusted quarterly EBITDA (earnings before interest, taxes, depreciation and amortization) reached R$ 1 billion for the second time in history, up 64% compared to the same period in 2020.

Despite the negative financial result of BRL 610 million, Eldorado ended the interval with a net profit of BRL 352 million, more than three times higher than that registered in the third quarter of 2020.

According to the company’s financial director, Fernando Storchi, despite the result of tripled net income, it is not in the company’s plans, so far, to pay dividends. The focus remains on preparing the company for the next growth cycle and reducing financial leverage, which, in September, dropped to the lowest level since the formation of Eldorado, to 1.7 times.

Valor Econômico
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