SÃO PAULO--(BUSINESS WIRE)--
Performance driven by growth in pulp sales and paper exports
Suzano announced its results for the second quarter of 2019 (2Q19). The period was marked by accelerated growth in pulp and paper exports. As a result, the Company registered operating cash generation of R$2.2 billion, +25% than 1Q19. Adjusted EBITDA reached R$3.1 billion, with adjusted EBITDA margin of 48%, excluding Klabin sales.
“The business environment in the pulp market remains challenging, especially due to macroeconomic and geopolitical issues, causing an imbalance between supply and demand. However, we noticed growing demand during the quarter, which supported the improved sales performance. The Company’s competitive costs, coupled with our solid financial health, make us fully resilient to operate in the more adverse environment right now,” said Walter Schalka, CEO of Suzano.
Pulp sales reached 2.2 million tons in 2Q19, +28% from the total sales in 1Q19. Paper sales totaled 301,000 tons, +10% in the same comparison, reflecting the Company’s strategy to increase the flexibility of commercial allocation in order to serve both domestic and foreign clients.
Suzano’s net revenue in the period came to R$6.7 billion. Considering the last 12 months, thereby providing an annual overview of the Company’s figures, net revenue totaled R$29.4 billion. Note that the numbers for 2018 disclosed today by Suzano, the company resulting from the merger of Suzano Papel e Celulose with Fibria, consider pro forma data as if the two companies had already been integrated a year ago. The merger was concluded on January 14, 2019.
Net income in the second quarter was R$700 million, benefited by higher pulp and paper sales volumes, and the positive impact of exchange variation on the net financial result.
In the second quarter, the Company’s financial health was improved by increasing its liquidity to R$10.8 billion, as well as by lengthening the average term and reducing its debt.
The Company ended the first half of the year with total investments of R$2.8 billion. Capital expenditure in 2019 is estimated at R$5.9 billion, about R$500 million less than initially planned for the year, which once again attests to the Company’s financial discipline in light of adverse market conditions.