Q2 2024 Suzano SA Earnings Call (English, Portuguese) Transcript
Key Points
- Suzano SA (SUZ) reported a strong EBITDA of BRL6.3 billion, showcasing the resilience of its business model.
- The company has successfully started the Cerrado project, which is expected to enhance its market relevance and cost competitiveness.
- Suzano SA (SUZ) is actively deleveraging, with net debt to EBITDA ratio now at 3.2 times, indicating financial strength.
- The company has announced a fifth share buyback program, demonstrating a commitment to returning value to shareholders.
- Suzano SA (SUZ) is strategically expanding into new markets with investments in Lenzing and Pactiv, aiming to understand and potentially scale in these geographies.
- International logistics challenges have impacted Suzano SA (SUZ)'s export volumes, particularly due to vessel delays and port conditions in Brazil.
- The company faces a potential increase in cash costs due to higher FX rates and the start-up of the Cerrado project.
- Pulp prices have declined significantly, creating an environment of lower prices that Suzano SA (SUZ) must navigate.
- The company is experiencing difficulties with pulp demand in China, as customers have reduced purchases due to squeezed margins.
- Despite strong performance, Suzano SA (SUZ) acknowledges the need to continuously monitor and adjust production based on market conditions and marginal costs.
Ladies and gentlemen, thank you for holding, and welcome to Suzano's conference call to discuss the results for the second quarter of 2024. (Operator Instructions)
Before proceeding, please be aware that any forward-looking statements are based on the beliefs and assumptions of Suzano's management and non-information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. You should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Suzano and could cause results to differ materially from those expressed in such forward-looking statements.
Now, I will turn the conference over to Mr. Beto Abreu. Please, you may begin your conference.
Thank you. Hello, everyone. Very happy to be here interacting with all of you now, and now as part of the Suzano's team. And I really would like to thank you for all of you for
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