SÃO PAULO--(BUSINESS WIRE)--Suzano, the company resulting from the merger of Suzano Pulp & Paper and Fibria, announces today (9) its results for the first quarter of 2019. In the period, which was marked by the merger of the two companies, on January 14, operating cash generation came to R$1.8 billion, while EBITDA amounted to R$2.8 billion. The figures demonstrate the company’s strong cash generation capacity, despite the more challenging market environment.
Suzano ended the first quarter with net revenue of R$5.7 billion, supported by the strong performance of prices and margins in both the pulp and paper businesses. Pulp sales volume, which was affected by the company’s sales strategy of reducing price volatility, amounted to 1.7 million tons, down from the first quarter of 2018, considering the combined pro-forma figures for Suzano Pulp & Paper and Fibria in the period.
“Our structural competitiveness in the global market and our solid financial position played a crucial role in sustaining the resilient results we delivered in the atypical business environment we experienced in the first quarter that began to emerge in late 2018 in the Asian market,” explained Walter Schalka, CEO of Suzano. “Our goal is to create higher value in the long term, for which we have maintained a consistent commercial strategy with the aim to reduce price volatility in the market,” added the executive.
Suzano posted a net loss of R$1.2 billion in the quarter, which basically is explained by non-cash accounting impacts associated with the acquisition of Fibria and by the effects from the depreciation in the Brazilian real against the U.S. dollar in the quarter.
The company also announced today its guidance for production in the year, of between 9 million and 9.4 million tons of pulp. With this level of production, the company aims to improve its management of inventories, which currently are above historical levels, and to continue to fully meet global demand. In the first quarter of 2019, a period in which five plants underwent scheduled shutdowns, pulp production volume amounted to 2.2 million tons. Meanwhile, paper production volume came to 292,000 tons.