Suzano's Q4 swings to net loss of 58M reais from net income of 34M reais in year-ago period, with adverse effects of operating factors, exchange variation, financial expenses, other influences; Q4 net revenue up 12.9% year-over-year, to 1.66B reais

Mar 14, 2014 – Suzano Holding SA By Debra Garcia

Headlines are rewritten for editorial clarity. The original story and headline begin below.

Original Headline: 4Q2013 Earnings Release

Paper, Pulp & Cellulose

SAO PAULO , March 14, 2014 (press release) –

São Paulo, March 14th, 2014. Suzano Papel e Celulose (Bovespa: SUZB5), one of the largest integrated pulp and paper producers in Latin America, announces today its consolidated results for the fourth quarter of 2013 (4Q13) and the fiscal year (2013). The consolidated interim financial statements were prepared in accordance with the standards of the Securities and Exchange Commission of Brazil (CVM) and the Accounting Pronouncements Committee (CPC) and comply with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). The operational and financial information is presented based on consolidated figures and in Brazilian real. Note that figures may present discrepancies due to rounding. Non-financial data, such as volume, quantity, average price, average quotes in Brazilian real and U.S. dollar, were not examined by our independent auditors. 
 
Adjusted EBITDA of R$555/ton, increasing 41% from 2012

4Q13 Highlights

  • Record-high Adjusted EBITDA of R$543 million (+38% vs. 4Q12), with adjusted EBITDA margin of 32.7% (+6 p.p. vs. 4Q12)
  • Increase in pulp and paper sales volume of 5% from 4Q12
  • Cash cost increased R$30/ton (+5.7%) from 4Q12, below the inflation recorded in the period. The increase in cash cost was driven mainly by higher wood costs (+R$26/ton) 
  • Reduction of 3.1% in selling, general and administrative expenses from 4Q12

2013 Highlights

  • Record-high Adjusted EBITDA of R$1,781 million (+41% vs. 2012), with adjusted EBITDA margin of 31.3% (+7 p.p. vs. 2012) 
  • Maranhão Project began operations on schedule with total investment above the initially announced figure by 4.4%
  • Higher wood costs due to the increased use of third-party wood in the supply mix and the higher average supply radius at the Mucuri Unit 
  • Cash cost increased by R$17/ton (+3.1%) from 2012, below the inflation recorded in the period. The increase in cash cost was driven primarily by higher wood costs (+R$39/ton) 
  • Operational efficiency gains in 2013 supported growth of 3.0% in market pulp production
  • Reduction of 3.6% in selling, general and administrative expenses from 2012
  • Net loss of R$220 million due to the R$745 million loss generated by the effects of foreign exchange variation on debt, but with cash effects occurring only upon the maturity or amortization of debt 
  • Solid financial liquidity: cash balance of R$3.7 billion

Click here for full financial release.

Industry Intelligence editor's note: In an omitted table, Suzano Holding SA reported fourth-quarter 2013 net loss of 58.032 million reais (US$24.509 million) and net revenue of 1.66 billion reais compared to fourth-quarter 2012 net income of 33.984 million reais and net revenue of 1.47 billion reais.

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