The Brazilian pulp manufacturer Suzano recorded a 17% growth in net revenue in the quarter compared to the previous year, totaling 11.5 billion reais. However, there was a 98% drop in net profit in the annual comparison, to 182 million reais ($34.7 million).
Adjusted Ebitda, in turn, rose 6% to 6.3 billion reais – the company’s second highest semester. The result was benefited by the strong sales volume and high prices – in the last year, the average net value of pulp, in dollars, rose 15% and that of paper, 31%.
The company recorded sales of 2.66 million tons of pulp and 324 thousand tons of paper in the range, up 5% and 10%, respectively, in the annual comparison.
Operating cash rose 2% compared to the second quarter of 2021, to R$5.1 billion. In the accumulated period between July 2021 and June 2022, operating cash generation added up to a record amount of 19 billion reais.
The company’s positive results are a reflection of higher prices, higher sales volume and the company’s efforts to mitigate cost inflationary pressure due to high commodity prices.
“The strong second quarter results stem not only from higher prices and positive market demand, but also from the efforts of Suzano’s teams on all fronts to further expand our operational excellence. Financial solidity and consistent operational performance have allowed us to expand our ability to generate and share value with our stakeholders,” said Suzano’s president, Walter Schalka.
The pulp company will increase the amount to be invested throughout the year, from 13.6 billion reais to 16.1 billion reais. Of this amount, 7.3 billion reais remains earmarked for the Cerrado Project, which currently has reached 21% of its physical progress.
In recent months, Suzano has announced several projects and investments, such as Suzano Ventures, the new tissue mill in Brazil, the acquisition of additives that will increase the structural competitiveness of wood, in addition to the payment of dividends and a new shares buyback program.