Suzano reports 77% EBITDA growth in Q3, demonstrating sector strength

BRAZIL – Suzano, the world’s leading pulp producer, reported a significant surge in third-quarter performance, underscoring its resilience amid a challenging global economy.

The company posted a 132% increase in operating cash flow, reaching R$4.4 billion (US$770.92m), while adjusted EBITDA rose by 77% year-over-year to R$6.5 billion (US$1.14bn).

Net revenue also grew substantially, climbing 37% to R$12.3 billion (US$2.16bn), marking Suzano’s most robust quarterly performance since 2022.

This growth was largely driven by higher sales volumes and elevated average export prices bolstered by favourable exchange rates.

Pulp sales totaled 2.6 million tonnes, up 6% from last year’s quarter, while paper sales increased by 9%, reaching 360,000 tonnes.

In Q3 2024, Suzano continued its expansion strategy, completing a 15% acquisition in Austrian wood fiber company Lenzing for €230 million (US$248.39m) and acquiring forestry assets valued at R$2.1 billion (US$367.94m).

The company also finalized the purchase of two U.S.-based mills from Pactiv Evergreen in a US$110 million deal.

“The third quarter has been pivotal, as we advanced in strategic areas,” said Suzano CEO Beto Abreu.

“Our new Ribas do Rio Pardo mill is performing well, sales volumes were strong, leverage improved, and our acquisitions in the U.S. and Austria bolstered our international footprint. These milestones reinforce our long-term readiness as we celebrate our centennial.”

Huhtamäki reports 1% decline in Q3 net sales but sees earnings gains

Finnish food packaging giant Huhtamäki reported a slight decline in Q3 2024 net sales, dipping 1% to €1.02 billion (US$1.10bn), compared to €1.03 billion (US$1.11bn) in Q3 2023.

Despite the decrease, the company achieved a notable 33% rise in earnings per share (EPS), reaching €0.57, while EBIT grew 2% to €95.1 million (US$102.71m).

Across the first three-quarters of FY24, Huhtamäki’s net sales fell by 2% to €3.06 billion (US$3.30bn), yet EPS surged 34% to €1.53.

EBIT over this period rose 18% to €277 million (US$299.15m), reflecting the company’s strategic focus on efficiency and profitability.

“Market conditions showed improvement in the third quarter, though the pace was moderate,” noted Huhtamäki President and CEO Charles Héaulmé.

“Our €100 million efficiency program, launched in 2023, continues to yield positive results in 2024.”

Regionally, Huhtamäki saw robust growth in North America, which maintained a strong EBIT margin.

Flexible packaging profitability improved, while low demand impacted foodservice margins. Fiber packaging faced challenges due to delayed pricing adjustments amid rising raw material costs.

With €134 million (US$144.72m) in capital expenditures through Q3, Huhtamäki remains committed to investing in efficiency and addressing evolving market demands.

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