Suzano Achieves Record Sales in 2024 with New Mato Grosso do Sul Mill and U.S. Acquisition
Suzano, the world’s largest pulp producer, has reported its financial and operational results for the final quarter of 2024 (4Q24) and the full year, marking a record-breaking performance. With total pulp and paper sales reaching an unprecedented 12.3 million tonnes, the company recorded a 7% increase compared to 2023. This growth was primarily driven by the operational ramp-up of its new pulp mill in Ribas do Rio Pardo, located in Mato Grosso do Sul, and further bolstered by its recent acquisition of paperboard mills in the United States.
Strong Financial Performance and Revenue Growth
Suzano’s higher sales volumes, coupled with favorable exchange rate dynamics that enhanced export revenues, led to total net revenues of R$47.4 billion in 2024. This represents a significant 19% increase from the previous year, underlining the company’s ability to capitalize on its expanded capacity and strong market demand.
The company’s adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) surged by 31%, reaching R$23.8 billion. Meanwhile, operational cash generation exhibited a remarkable 40% growth, totaling R$16.2 billion. These figures highlight Suzano’s financial robustness and operational efficiency despite macroeconomic challenges.
However, the company reported a net loss of R$6.7 billion, primarily attributed to the accounting impact of U.S. dollar-denominated debt and foreign exchange hedging operations when converted into Brazilian real. Importantly, Suzano emphasized that this accounting adjustment does not immediately impact cash flows, with potential cash effects materializing only upon debt and hedge maturity.
Expansion through the Cerrado Project and U.S. Acquisition
Suzano’s total investments in 2024 amounted to R$17.1 billion, with a significant R$4.5 billion allocated to its flagship initiative—the Cerrado Project. This massive undertaking saw the construction and commissioning of the world’s largest single pulp production line in Ribas do Rio Pardo. The new mill commenced operations on July 21 and astonishingly completed its learning curve within six months, setting an industry record for the fastest operational ramp-up.
The addition of this state-of-the-art facility played a pivotal role in improving Suzano’s cost structure. The company reported a 6% reduction in its pulp cash cost, which dropped to R$828 per tonne in 2024 compared to the prior year. This efficiency improvement enhances Suzano’s competitive edge, allowing it to maintain strong margins even in volatile market conditions.
Beyond its domestic expansion, Suzano’s acquisition of U.S.-based paperboard mills further contributed to its record sales. This strategic move diversified the company’s revenue streams and reinforced its position in the global pulp and paper industry, ensuring greater access to key North American markets. The acquisition aligns with Suzano’s long-term vision of expanding its international footprint and leveraging its expertise in sustainable forestry and production practices.
CEO’s Perspective and Future Strategy
Commenting on the company’s performance, Suzano’s CEO, Beto Abreu, expressed confidence in the firm’s strategic direction:
We successfully completed our Cerrado Project and made significant strides in our strategy, with the acquisition of assets in the U.S. and a stake in Lenzing, the Austria-based textiles business. Despite these investments, we ended 2024 with lower net leverage than the prior year, reflecting Suzano’s discipline in capital allocation, operational competitiveness, and financial strength.”
This statement underscores the company’s commitment to balancing growth investments with prudent financial management, ensuring long-term sustainability and profitability.
Financial Discipline and Shareholder Returns
A key highlight of Suzano’s financial strategy in 2024 was its disciplined approach to capital allocation. The company’s net leverage ratio in U.S. dollars declined from 3.1 times in December 2023 to 2.9 times by the end of 2024. This reduction demonstrates Suzano’s ability to execute its largest-ever capital investment project while maintaining financial stability within the company’s predefined policy limits.
Beyond its expansion initiatives, Suzano continued to focus on shareholder value. The company allocated R$2.8 billion towards its share buyback program and distributed R$1.5 billion in interest on equity payments to its shareholders. This strategic approach reflects Suzano’s commitment to balancing reinvestment in growth opportunities with delivering returns to investors.
A Century of Innovation and Sustainability Commitment
As Suzano celebrated its centenary in 2024, it reached a workforce milestone, employing 56,000 direct and indirect employees worldwide. This achievement underscores the company’s significant contribution to job creation and economic development across its operational regions.
Beyond financial and operational success, Suzano reaffirmed its dedication to sustainability and environmental stewardship. The company unveiled an ambitious commitment to invest up to US$100 million over a ten-year period in research, knowledge generation, and education initiatives focused on sustainability. These initiatives are being undertaken in collaboration with globally renowned institutions, including the University of Cambridge and the International Union for Conservation of Nature (IUCN), among others.
Suzano’s central sustainability goal revolves around fostering global efforts to protect and restore natural ecosystems. The company aims to lead advancements in conservation, climate change mitigation, and water resource management through pioneering research and education. By integrating sustainability into its core strategy, Suzano continues to position itself as a responsible industry leader, driving positive environmental and social impact.
Outlook for 2025 and Beyond
Looking ahead, Suzano remains focused on consolidating its market leadership and expanding its global footprint. With its newly operational Cerrado Project mill and the integration of its U.S. assets, the company is well-positioned to capture future growth opportunities.
Key priorities for 2025 include further optimizing production efficiency, reducing costs, and enhancing sustainability initiatives. Given its strong financial position, Suzano is also expected to explore additional strategic acquisitions and partnerships to reinforce its competitive position in the pulp and paper industry.
Moreover, as global demand for sustainable materials continues to rise, Suzano is poised to play a crucial role in meeting market needs through its responsibly managed forestry operations and innovative product offerings. The company’s proactive approach to sustainability, coupled with its robust operational performance, sets a strong foundation for continued success in the coming years.
Suzano’s record-breaking performance in 2024 underscores its ability to execute large-scale expansion projects while maintaining financial discipline and sustainability leadership. The successful commissioning of the Cerrado Project, along with strategic acquisitions in the U.S., has propelled the company to new heights, reinforcing its status as the world’s leading pulp producer.
As Suzano embarks on its next chapter, its unwavering commitment to innovation, environmental stewardship, and operational excellence will continue to drive its success. With a clear strategic vision and a solid financial foundation, the company is well-equipped to navigate the evolving industry landscape and deliver long-term value to stakeholders worldwide.
