Suzano drives pulp sales surge amid flat revenues, new mill efficiency

BRAZIL – Suzano, a leading global producer of pulp and paper, announced a 20% rise in sales volume for the third quarter of 2024, reaching 3.6 million tonnes of pulp and paper combined.

This marks an uptick from the 3 million tonnes recorded in the same period last year. 

The growth stems directly from the ramp-up at the company’s newly operational Ribas do Rio Pardo pulp mill in Brazil, which began production earlier in 2024, alongside the recent addition of paper manufacturing facilities in the United States acquired last October.

Despite the volume increase, net revenues remained stable at US$2.2 billion for the quarter, showing little change from the prior year. 

The company attributed this steadiness to softer pulp prices on international markets and unfavorable currency fluctuations impacting export earnings. 

On a positive note, adjusted EBITDA came in at US$930 million, while operating cash flow generated US$610 million, providing ample liquidity for ongoing investments.

A key highlight emerged from Suzano’s packaging division, which achieved its first positive adjusted EBITDA contribution from the U.S. operations. 

These assets, integrated just weeks prior, have already begun contributing to the company’s diversified portfolio in sustainable materials. 

The move expands Suzano’s footprint in North America, where demand for recyclable paper-based packaging continues to grow amid stricter environmental regulations.

In a statement, Beto Abreu, Suzano’s chief executive, highlighted the operational resilience. He noted that the new mill’s efficiency has kept cash flows strong despite market headwinds. 

Abreu added that the company is advancing a joint venture with Kimberly-Clark to further develop innovative pulp applications, drawing early lessons from the U.S. packaging integration.

This performance underscores Suzano’s strategic push into value-added segments like packaging, where eucalyptus-based products offer a renewable alternative to plastics. 

The Ribas do Rio Pardo facility, with its advanced automation and low-water usage design, processes over 2.5 million tonnes annually using certified sustainable forestry practices.

Looking ahead, Suzano plans to allocate surplus cash toward debt reduction and further capacity enhancements. 

The company’s export-oriented model, with over 90% of output shipped abroad, positions it well to capitalize on recovering pulp demand in Europe and Asia. 

Recent data from the International Council of Forest & Paper Associations indicates global pulp shipments rose 5% year-over-year in Q3, fueled by tissue and specialty paper sectors.

As sustainability targets tighten worldwide, Suzano’s integration of acquired assets signals a broader industry shift toward consolidated, eco-efficient supply chains. 

With sales momentum building, the firm eyes sustained profitability in 2025, targeting at least 10% EBITDA growth through optimized operations and new market entries.

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