Suzano (SUZ) Q2 2025 Earnings Call August 07, 2025 08:30 AM ET Company ParticipantsJoão Alberto Fernandez de Abreu - CEOFabio Almeida de Oliveira - EVP - Paper & PackagingLeonardo Grimaldi - EVP - Pulp Commercial & LogisticsAires Galhardo - EVP - Pulp Operations Engineering & EnergyMarcos Moreno Chagas Assumpção - EVP - Finance & IRMarcio Farid Filho - Vice PresidentLeonardo Correa - Associate Partner Equity ResearchDaniel Sasson - Head of Latam Steel, Mining, Pulp, Paper & Agribusiness and CementLuis Renat ...

Suzano (SUZ) Q2 2025 Earnings Call August 07, 2025 08:30 AM ET Speaker0Ladies and gentlemen, thank you for holding and welcome to Suzano's conference call to discuss the results for the 2025. We would like to inform that all participants will be in a listen only mode during the presentation that will be addressed by the CEO, Mr. Alberto Abreu and other executive officers. This call will be presented in English with simultaneous translation to Portuguese. To change the audio, you can press the globe icon on ...

Disclaimer Earnings Conference Call 2Q25 This presentation contains what are considered "forward-looking statements," as defined in Section 27A of the 1933 Securities Act and Section 21E of the 1934 Securities Exchange Act, as amended. Some of these forward-looking statements are identified with words such as "believe," "may," "could," "would," "possible," "will," "should," "expect," "intend," "plan," "anticipate," "estimate," "potential," "outlook" or "continue," as well as the negative forms of these word ...

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Group 1: Joint Venture Announcement - Suzano S.A. and Kimberly-Clark Corporation are forming a $3.4 billion joint venture to manufacture consumer and professional tissue products, with Suzano owning 51% and Kimberly-Clark holding 49% [1][7] - The joint venture will be incorporated in the Netherlands and will operate 22 manufacturing facilities across 14 countries, with an annual tissue production capacity of approximately 1 million tons and projected net sales of $3.3 billion in 2024 [2][3][7] Group 2: Market and Employment Impact - The joint venture will market and distribute various tissue products in over 70 countries and is expected to create more than 9,000 job opportunities [3] - The transaction is anticipated to close in mid-2026, with Suzano set to pay $1.734 billion in cash at closing, subject to standard post-closing adjustments [4][7] Group 3: Suzano's Financial Performance - In Q1 2025, Suzano reported net sales of $1.97 billion, an increase from $1.91 billion in the same quarter of the previous year, with adjusted earnings rising to 87 cents compared to 3 cents in the prior year [5] - Over the past year, Suzano's shares have increased by 5.9%, while the industry has seen an 18.4% growth [6]

Core Insights - Kimberly-Clark has formed a strategic partnership with Suzano to create a leading international tissue and professional products company, focusing on higher growth and margin segments [1][2][3] - The new venture will allow Kimberly-Clark to enhance its operational efficiency and improve its growth trajectory by concentrating on its iconic global brands [3][4] - The transaction is expected to generate significant shareholder returns through upfront cash proceeds and share repurchases [3][4][6] Company Strategy - The partnership sharpens Kimberly-Clark's focus on proprietary spaces that enhance growth, with approximately two-thirds of net revenues projected to come from personal care categories post-transaction [3][4] - The collaboration with Suzano is anticipated to reduce product costs and improve supply chain efficiency, benefiting both consumers and customers [3][4] Financial Details - Kimberly-Clark will contribute its International Family Care and Professional (IFP) business, which generated approximately $3.3 billion in net sales in 2024, to the new venture [5][6] - The implied enterprise value for the IFP business is approximately $3.4 billion, subject to adjustments at closing [6] - The transaction is expected to be dilutive to Adjusted Earnings Per Share by approximately $0.30-0.40 in the first full year following the close [7][8] Operational Impact - The new venture will encompass sales in over 70 countries, 22 manufacturing facilities, and around 9,000 employees, with more than 40 regional brands being owned by the new entity [5][6] - Kimberly-Clark's interests in Mexico and its joint venture in South Korea are excluded from this transaction [5] Timeline and Approvals - The transaction has been unanimously approved by Kimberly-Clark's Board of Directors and is expected to close in mid-2026, pending regulatory approvals [10]

Group 1 - The company Suzano (NYSE: SUZ) reported an acceptable quarter, facing cash cost pressures due to maintenance downtime, but benefitting from increased Cerrado volumes and favorable supply effects on paper and pulp prices [2] - The Value Lab, which focuses on long-only value investment ideas, has successfully identified mispriced international equities and aims for a portfolio yield of approximately 4% [1][2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to generate non-correlated and outsized returns in the current economic environment [3] Group 2 - The Value Lab offers members real-time portfolio updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, monthly new trades, quarterly earnings write-ups, and daily macro opinions [2]

Group 1 - The company Suzano reported a record net revenue of 11.6 billion reais in Q1 2025, a 22% increase compared to the same period in 2024, driven by currency advantages, increased sales from the new Ribas do Rio Pardo mill, and higher paper sales and prices [1][5][6] - Total quarterly sales exceeded 3 million tons, a 12% year-on-year increase, with pulp sales reaching 2.7 million tons (up 10%) and paper sales at 390,000 tons (up 25%) [5][6] - Adjusted EBITDA reached 4.9 billion reais, a 7% increase year-on-year, while operating cash income grew by 5% to 2.6 billion reais [6] Group 2 - CEO Beto Abreu emphasized the company's commitment to maintaining business resilience and free cash flow under various market conditions, highlighting a disciplined approach to strategic goals, including a leverage reduction target [7] - The company's net leverage ratio was reported at 3.0 times, with 2.2 billion reais allocated for equity interest payments and 3.6 billion reais for capital expenditures related to asset maintenance, modernization, and capacity expansion [7] - Suzano has been a major player in the global pulp market and a leading paper and packaging manufacturer in the Americas, with a strong commitment to sustainability and innovation [8]

FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of May, 2025. Commission File Number 001-38755 Suzano S.A. (Exact name of registrant as specified in its charter) SUZANO INC. (Translation of Registrant's Name into English) Av. Professor Magalhaes Neto, 1,752 10th Floor, Rooms 1010 and 1011 Salvador, Brazil 41 810-012 (Address of principal executive office) ...