Suzano S.A.(SUZ) - 2024 Q4 - Annual Report

Financial Performance - Net sales for the year ended December 31, 2024, were R$47,403,282, an increase of 18% compared to R$39,755,575 in 2023[9] - Gross profit for 2024 was R$20,001,755, up from R$14,678,900 in 2023, reflecting a significant improvement in profitability[9] - The company reported a net loss of R$7,044,706 for 2024, compared to a net income of R$14,106,381 in 2023, highlighting challenges faced during the year[9] - Earnings per share for 2024 were reported at R$-5.59313, a decline from R$10.85794 in 2023, indicating a significant drop in shareholder value[9] - Net income for the year was a loss of $7,044,706, a significant decrease from a profit of $14,106,381 in 2023[16] - Cash generated from operations increased to $23,751,750, compared to $20,510,846 in 2023, reflecting a growth of approximately 10.9%[16] Assets and Liabilities - Total assets increased to R$165,936,105 in 2024, compared to R$143,593,025 in 2023, representing a growth of approximately 15.5%[5] - Total liabilities increased to R$133,520,530 in 2024, up from R$98,782,725 in 2023, marking a rise of approximately 35%[7] - Trade accounts receivable rose to R$9,132,860 in 2024, a 33% increase from R$6,848,454 in 2023, indicating stronger sales performance[5] - Cash and cash equivalents at year-end were R$9,018,818, an increase from R$8,345,871 in 2023, indicating improved liquidity[5] Equity and Dividends - Share capital remained unchanged at R$ 9,269,281 thousand as of December 31, 2023[13] - The company reported a total equity of R$ 44,810,300 thousand at the end of 2023, reflecting an increase from the previous year[13] - The company proposed additional dividends totaling R$ 93,633 thousand for 2023[13] - The Board of Directors approved the distribution of interest on equity totaling R$2,500,000, at a rate of BRL 2.017362506 per share[47] Investments and Acquisitions - The Cerrado Project commenced operations on July 21, 2024, with a nominal capacity of 2,550,000 tons of eucalyptus pulp production per year and a total investment of R$22,200,000[32] - On August 30, 2024, the Company acquired 15% of Lenzing Aktiengesellschaft for EUR 229,971 (equivalent to R$1,436,814), at a price of EUR 39.70 per share[37] - The Timber Transaction was completed on July 31, 2024, with a cash consideration of R$2,143,821 for the purchase of 100% of Timber VII SPE S.A. and Timber XX SPE S.A.[41] - The Pactiv Transaction involved the acquisition of assets from Pactiv Evergreen Inc. on October 1, 2024, for US$82.932 (equivalent to R$452,153)[44] Operational Efficiency and Future Plans - The company plans to focus on expanding its market presence and enhancing operational efficiencies to recover from the financial challenges faced in 2024[9] - The company operates 16 industrial units, including 14 in Brazil and 2 in the United States, along with 7 technology centers globally[18] Tax and Regulatory Changes - The Tax Reform enacted on December 20, 2023, introduces a dual VAT system, replacing existing taxes such as PIS, COFINS, ICMS, and ISS[50] - A transition period for the new tax system will occur from 2026 to 2032, with no immediate impact on financial statements as of December 31, 2024[53] Accounting Policies and Financial Reporting - The consolidated financial statements are prepared in compliance with IFRS and expressed in thousands of Brazilian Reais (R$)[54][55] - The Company has adopted new accounting policies effective January 1, 2024, with no significant changes identified in the assessment of supplier financing agreements[64][68] - The Company has identified two reportable segments for financial reporting purposes[100] Risk Management - The Company has not identified any short-term or long-term risks to its supply chain due to the ongoing geopolitical conflicts[30] - The Company has maintained its commercial transactions as planned, with only minor suspensions of sales to customers in Russia[30] - The Company has taken steps to monitor the situation in Israel, where it has local employees and facilities, to ensure operational continuity[31]