Suzano, the world's largest pulp producer, announces its financial statements for the full fiscal year of 2023.
- Total investment of R$18.6 billion in 2023, a 14% increase on FY22
- FY23 Net revenues of R$39.8 billion, a 20% decrease on FY22
- FY23 Adjusted EBITDA of R$18.3 billion, a 35% decrease on FY22
- FY23 Operating cash generation of R$11.6 billion, a 49% decrease on FY22
- FY23 Pulp sales totalled 10.2 million tons, a 4% decrease on FY22
- FY23 Paper sales totalled 1.3 million tons, a 1% decrease on FY22
Despite the marked decline in global pulp prices over the course of 2023, Suzano has invested over R$18bn to guarantee its future success. It is currently finalising the construction of the Cerrado Project, the world's largest single-line pulp mill, and has expanded its forestry estate, safeguarding supply and enhancing future competitiveness.
Walter Schalka, CEO of Suzano, said:
"Our investment cycle, including the highest annual investment ever, in 2023, represents the largest in our centennial history with over R$50 billion spent between 2019 and 2023. A further R$16.5 billion will be invested in 2024. In parallel, we have maintained strong cash generation and kept net debt at a sustainable level of US$11.5 billion, reflecting our commitment to strategic growth and financial discipline. We faced a challenging scenario in 2023 and our results demonstrate the company's resilience to generate value for our stakeholders. With the start-up of Cerrado Project, our structural competitiveness will be more robust in the coming years."
As the main initiative in Suzano's current investment plan, the Cerrado Project will be operational by June 2024 and involves total investment of R$22.2 billion. The new mill will add 2.55 million tons of pulp to the company's current installed capacity of 10.9 million tons of pulp per year.
Other major investments in 2023 include the acquisition of Kimberly-Clark's tissue assets in Brazil, the expansion of its forests and landholdings base and the modernization of the Jacareí and Aracruz units and port terminals. The company also announced investments to build a tissue paper mill in Aracruz and a project to quadruple the fluff pulp production capacity in Limeira mill. Fluff pulp is the raw material used for manufacturing personal hygiene products, such as baby and adult diapers and sanitary napkins.
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