May 12, 2014
Suzano Pulp and Paper (Bovespa: SUZB5), one of the largest integrated pulp and paper producers in Latin America, announces today its consolidated results for the first quarter of 2014 (1Q14). 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 the International Financial Reporting Standards (IFRS) issued by the International Accounting Standard 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 and average quotes in Brazilian real and U.S. dollar, were not reviewed by our independent auditors.
Record-high Adjusted EBITDA/ton of R$649/ton (+41% vs. 1Q13), with adjusted EBITDA margin of 35% (+7 p.p. vs. 1Q13)
Adjusted EBITDA of R$489 million in 1Q14 (+49.6% vs. 1Q13) and R$1,944 million in the last 12 months ending on March 31, 2014 (+9% vs. 2013)
Increase of 6% in pulp and paper sales volume compared to 1Q13
Increase of 12% in the average net pulp and paper prices in BRL compared to 1Q13
Cash Cost increase of 3.8% compared to 1Q13, below inflation in the period, despite the higher wood cost (+R$34/ton)
Reduction of 1.1 p.p. in SG&A as a ratio of net revenue compared to 1Q13
Reduction in leverage to end the period at 4.8x Net Debt/Adjusted EBITDA
Economic and Financial Performance
Suzano’s net revenue amounted to R$1,399.6 million in 1Q14. Pulp and paper shipments in the quarter amounted to 754 thousand tons, increasing 6.1% from 1Q13 and decreasing 17.6% from 4Q13.
In relation to 1Q13, the performance of total net revenue is mainly explained by: (i) the 12.4% increase in the average net price for paper and pulp in Brazilian real, which benefitted from the currency's depreciation against the U.S. dollar; and (ii) the 6.1% increase in total sales volume.
Net Income (Loss)
The Company recorded net income of R$201.0 million in 1Q14, compared to the net income of R$41.9 million in 1Q13 and net loss of R$58.0 million in 4Q13.
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Industry Intelligence Inc. editor's note: In an omitted table, Suzano Holding SA reported first-quarter 2013 net revenue of 1.174 billion Brazilian reais.