Suzano S.A.(US:SUZ)2025-04-28 21:31Financial Performance - Net sales increased by 19.2% to R$47,403.3 million in 2024 from R$39,755.6 million in 2023, driven by higher cellulose prices and sales volume [358]. - Net sales from pulp rose by 22.5% to R$37,593.5 million in 2024, accounting for 79.3% of total net sales, influenced by an 8% appreciation of the USD against the BRL and a 6.3% increase in sales volume [359]. - Gross profit increased by 36.3% to R$20,001.8 million in 2024, with a gross margin of 42.2% compared to 36.9% in 2023, primarily due to increased pulp sales prices and volume [365]. - Operating profit before net financial income rose by 28.4% to R$15,691.1 million in 2024, with an operating margin of 33.1% compared to 30.7% in 2023 [369]. - Net income decreased by 149.9% to a loss of R$7,044.7 million in 2024, compared to a gain of R$14,106.4 million in 2023 [373]. Expenses and Investments - Selling expenses increased by 13.2% to R$2,938.5 million in 2024, attributed to higher sales volume and the acquisition of Kimberly Clark's tissue business in Brazil [366]. - General and administrative expenses surged by 36.2% to R$2,619.8 million in 2024, mainly due to increased personnel costs [366]. - The company plans to invest R$7,677.4 million in maintenance capital expenditures for 2024, primarily financed by cash and cash generation [381]. - Capital expenditures totaled R$17,119.8 million in 2024, down from R$18,576.6 million in 2023, with R$7,610.0 million allocated to industrial and forestry maintenance [386]. - The approved budget for capital expenditures in 2025 is R$12,380.8 million, reflecting a decrease primarily due to the Cerrado project's investment schedule [387]. Cash Flow and Indebtedness - Cash and cash equivalents as of December 31, 2024, were R$9,018.8 million, with 70% denominated in reais and 30% in U.S. dollars [378]. - Net cash provided by operating activities increased to R$20,604.4 million in 2024 from R$17,315.5 million in 2023, a rise of R$3,288.9 million due to higher pulp prices and currency appreciation [383]. - Net cash used in investing activities decreased to R$20,512.7 million in 2024 from R$26,035.3 million in 2023, with R$9,190.6 million allocated to property, plant, and equipment [384]. - Total consolidated outstanding indebtedness reached R$101,435.5 million as of December 31, 2024, with R$10,501.4 million classified as current indebtedness [388]. Research and Development - Research and development investments amounted to R$174.0 million in 2024, focusing on increasing forestry productivity and developing new products [409]. - The company produced over 320,000 seedlings and 17 new potential clones in 2024 through its Transition Nursery initiative [411]. - FuturaGene's investments in R&D ensure significant independence from external sources for intellectual property and innovation [422]. - In 2024, the company filed 11 new technology patents and protected one new eucalyptus variety, focusing on biorefining and paper products [422]. Innovations and Sustainability - The company achieved a milestone in biorefinery with the sale of 20,000 tonnes of Ecolig lignin, diversifying its portfolio of certified applications [419]. - The Paper and Packaging projects in 2024 emphasized the replacement of fossil products and introduced biodegradable solutions for hot liquids [420]. - FuturaGene's Forest Management strategy focuses on increasing productivity and reducing operational costs through technological innovation [416]. - The company launched certified grammages for food in the Greenpack® Line and introduced the Bluecup Bio® line for biodegradable solutions [420]. Financial Instruments and Compliance - The company raised R$5.9 billion in debentures in May 2024, with various interest rates and amortization schedules [394]. - The company issued panda bonds amounting to CNY1,200,000 (equivalent to US$166.0 million) on November 15, 2024, with a fixed interest rate of 2.8% [403]. - The company has no financial covenants as of December 31, 2024, and is in compliance with all other non-financial covenants [405]. Regulatory Approvals and Patents - In 2024, FuturaGene received three new commercial approvals for genetically modified eucalyptus varieties, bringing the total to eleven approvals by the end of the year [415]. - FuturaGene holds a total of 804 granted patents and patent applications, including 75 protected eucalyptus varieties and over 404 potential new varieties under evaluation [421]. Market Trends - The primary trends influencing sales and production include pulp purchase patterns, pulp prices, and global economic conditions [425].