Suzano has published a financial report detailing its activities during 2023. The leading pulp company, which celebrated its 100th anniversary in January, ended the period with a total investment of R$18.6 billion, setting a record in its history.
The past year was also marked by a significant reduction in average pulp prices, by an advance in the performance of the forestry and industrial operations, and by Suzano’s preparation for the future, especially with the expansion of its forestry base for greater future competitiveness and the progress of work on the Cerrado Project, which includes the largest single pulp production line in the world and requires a total investment of R$ 22.2 billion.
As a result, the company generated operating cash flow of R$ 11.6 billion in 2023. Net income totaled R$ 39.8 billion and adjusted EBITDA totaled R$ 18.3 billion. In the last line of the balance sheet, the company recorded a positive net result of R$ 14.1 billion.
The cash cost of pulp production, without stoppages, showed a continuous evolution with successive falls throughout the year and closed the year at a level of R$ 816 per ton in the last quarter. Sales of pulp, the raw material used in the manufacture of tissue products, printing and writing paper, packaging and special papers developed from eucalyptus cultivation, moved 10.2 million tons. Paper sales totaled 1.3 million tons.
“Our investment cycle, which includes the largest annual disbursement in our history, in 2023, totaled more than R$ 50 billion between 2019 and 2023, and we will invest another R$ 16.5 billion in 2024. At the same time, we maintained solid cash flow generation and managed to keep our net debt at a healthy level of US$ 11.5 billion, reflecting our commitment to strategic growth and financial discipline,” says Walter Schalka, Suzano’s president. “We face a challenging scenario in 2023 and our results show the company’s resilience in generating value for our stakeholders. With the entry into operation of the Closed Project, our structural competitiveness will be even stronger in the coming years,” adds the executive.
Other important investments made by Suzano during 2023 include the acquisition of Kimberly-Clark’s tissue assets in Brazil, the expansion of its forestry and land base and modernizations at the Jacareí (SP) and Aracruz (ES) Units and port terminals. The company also announced investments in the construction of a tissue paper mill in Aracruz and in a project to quadruple, in Limeira (SP), the production capacity of fluff pulp, a raw material used in absorbent and personal hygiene products such as children’s and adult diapers and feminine pads.
Another highlight in 2023 is the advancement of the “Commitments to Renew Life”, a set of long-term goals established in 2020 by Suzano in line with the UN Sustainable Development Goals (SDGs). Details on the results of initiatives such as poverty reduction and removal of carbon from the atmosphere will be disclosed in the 2023 Annual Report, scheduled for March of this year.
