Financial Data and Key Metrics Changes - The company reported that sales, operational cash generation, and EBITDA were in line with expectations for the quarter [10] - Net debt remained stable at $13 billion, with net leverage increasing to 3.1 times due to a reduction in last twelve months EBITDA to $4.2 billion [28] Business Line Data and Key Metrics Changes - The paper and packaging business in Brazil saw stronger sales volumes and lower costs compared to Q1, with EBITDA growth year-over-year [12] - U.S. operations experienced a 3% price increase quarter-over-quarter driven by product mix and better commercial location, although EBITDA was negatively impacted by lower volumes and higher costs due to maintenance [13][12] Market Data and Key Metrics Changes - In Brazil, print and write demand rose 6% year-over-year, while uncoated wood-free paper demand remained stable in North America and Latin America but declined 10% in Europe [14] - The U.S. market for boxboard demand was stable, with a 1% increase in demand for SBS boards [15] Company Strategy and Development Direction - The company is focusing on competitiveness and cost reduction, with expectations of lower cash costs in the upcoming quarters [10] - A deal with Eldorado is expected to provide an internal return of around 20%, allowing for increased production at the Ribba's mill without significant investment [7][8] Management's Comments on Operating Environment and Future Outlook - Management highlighted a positive outlook for cash cost trends and emphasized the importance of maintaining competitiveness in a challenging market environment [10][76] - The company is preparing for various scenarios in the global market and aims to improve operational efficiency [85] Other Important Information - The company is not currently planning significant new investments but is focused on executing existing projects and deleveraging [10][86] - The company has built inventories in the U.S. to mitigate the impact of 50% import duties imposed by the U.S. government [17] Q&A Session Questions and Answers Question: What are the changing dynamics in the pulp scenario? - Management noted high order intake levels in China and a supportive environment for price increases due to restocking movements and production recovery [32][34] Question: What is the internal rate of return for the deal with Eldorado? - The expected internal rate of return is around 20%, driven by optimized harvesting and reduced operational costs [40][42] Question: What is the expected CapEx trend for 2026? - The company anticipates a declining trend in CapEx, although specific numbers will be disclosed later [84] Question: How are negotiations regarding the 10% tariff going? - The company successfully negotiated that customers will bear the 10% tariff, ensuring that Suzano will not absorb this cost [95] Question: What is the status of the Kimberly Clark acquisition? - Dedicated teams have been established to plan the carve-out of the new joint venture, with the project progressing as planned [96]

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 ...

Summary of the Conference Call on the Pulp & Paper Industry Industry Overview - The China pulp market is currently in a fragile equilibrium, with good pulp sales recently but negative macro sentiment affecting trading and growth uncertainties [1][2] - Paper production has decreased by 2% year-to-date, while pulp supply is growing rapidly, leading buyers to perceive no risk of deficit for restocking [1][2] Key Points - **Market Sentiment**: Confidence levels among buyers and sellers are low, limiting significant price movements in the short term. Industry participants are holding onto unclear and potentially unsustainable reasons to support pricing [2][3] - **Price Trends**: Pulp prices are expected to remain relatively flat until the end of summer, but a potential cyclical rebound could occur towards year-end as low prices impact producers' balance sheets [3][19] - **Production and Inventory**: - Pulp inventories at Chinese ports decreased by 2% month-over-month to 2.1 million tons, still 14% above the 5-year historical average [19] - Paper output in China increased by 4% month-over-month and 5% year-over-year in July, with utilization rates remaining flat at 59% [21] Pricing Data - China FOEX hardwood imported pulp prices decreased by $3 per ton to $495 per ton, while domestic resale prices ranged from $488 to $492 per ton [10] - Softwood imported FOEX prices also decreased by $3 per ton to $687 per ton, with domestic resale prices ranging from RMB -27 to 1 per ton [10] Margins and Production Costs - Paper margins in China were flat to down in July, primarily due to a slight decline in paper prices across all grades, despite lower pulp prices partially offsetting this decline [13] - The cash cost curve in China remains deflationary, allowing production to remain resilient at low prices [1] European Market Insights - European containerboard prices were broadly flat in July, with Kraftliner prices up by 2% and Testliner down by 3% [25] - European graphic paper prices decreased, with coated and uncoated woodfree prices down by 2% and 3% month-over-month, respectively [28] Company-Specific Insights - UPM's management indicated a negative outlook for pulp, citing macro uncertainties and declining orders, leading to planned shutdowns of certain mills [34] - SCA's management noted a challenging market for European containerboard, with negative price movements due to oversupply and tariff discussions [35] - Altri's management highlighted that hardwood pulp prices are close to marginal costs and may stabilize soon, with European prices expected to follow China's trend with a delay [35] Latin America Market Data - In Brazil, corrugated box shipments decreased by 2% year-over-year and 6% month-over-month in June, with year-to-date shipments at 2.0 million tons, reflecting a 1% year-over-year decline [36] Investment Ratings - Various pulp and paper companies in Latin America have been rated with target prices and upside potential, with Suzano SA rated as a "Buy" with a target price of $65.00, reflecting a 24.6% upside [38] Conclusion - The pulp and paper industry is facing a complex landscape characterized by fragile market conditions, fluctuating prices, and varying production outputs. Investors should remain cautious and monitor macroeconomic factors that could influence market dynamics.

Financial Performance - Mercer's Operating EBITDA decreased significantly from $47 million in Q1 2025 to -$21 million in Q2 2025[6] - The pulp segment experienced a substantial decrease in EBITDA, from $50 million in Q1 2025 to -$10 million in Q2 2025[6] - The solid wood segment's EBITDA also decreased, from -$0 million in Q1 2025 to -$5 million in Q2 2025[6] - Net loss increased from -$22 million in Q1 2025 to -$86 million in Q2 2025[27] Pulp Market - NBSK (Northern Bleached Softwood Kraft) list price was $1,000 per tonne[10] - NBSK China (net) price decreased from $793 per tonne in Q1 2025 to $734 per tonne in Q2 2025[10] - NBHK (Northern Bleached Hardwood Kraft) China (net) price decreased from $578 per tonne in Q1 2025 to $533 per tonne in Q2 2025[10] Lumber and Mass Timber - Lumber production decreased by 6% from 128 mmfbm in Q1 2025 to 120 mmfbm in Q2 2025[43] - Mass timber revenue decreased from $17 million in Q1 2025 to $11 million in Q2 2025[25] Strategic Initiatives - Mercer aims to improve profitability by $100 million by the end of 2026, using 2024 as a baseline[30] - The company realized $5 million in cost savings to date and anticipates $25 million for 2025[30]

Core Insights - Mercer International Inc. reported a significant decline in Operating EBITDA, posting negative $20.9 million for Q2 2025, down from positive $30.4 million in Q2 2024 and $47.1 million in Q1 2025 [2][9][37] - The company experienced a net loss of $86.1 million ($1.29 per share) in Q2 2025, compared to a net loss of $67.6 million ($1.01 per share) in Q2 2024 and $22.3 million ($0.33 per share) in Q1 2025 [2][9][37] - The decline in performance is attributed to ongoing uncertainties in the global trade environment, weaker demand for pulp in China, and a depreciation of the dollar, which negatively impacted Operating EBITDA by approximately $26 million [3][9][37] Financial Performance - Total revenues for Q2 2025 decreased by approximately 9% to $453.5 million from $499.4 million in Q2 2024, primarily due to lower sales realizations and volumes from pulp and manufactured products, partially offset by higher lumber sales realizations [14][35] - Costs and expenses in Q2 2025 decreased by approximately 6% to $511.9 million from $543.2 million in Q2 2024, driven by fewer days of planned maintenance downtime at pulp mills [15][35] - The company reported a total net loss of $108.4 million for the first half of 2025, compared to a net loss of $84.3 million in the same period of 2024 [36][48] Segment Analysis - In the pulp segment, revenues decreased by approximately 10% to $332.3 million in Q2 2025 from $367.4 million in Q2 2024, primarily due to lower pulp sales realizations and volumes [19][22] - The solid wood segment saw revenues decrease by approximately 10% to $117.3 million in Q2 2025 from $130.2 million in Q2 2024, mainly due to lower manufactured products revenues, despite higher lumber revenues [28][29] - Lumber revenues increased by approximately 23% to $66.3 million in Q2 2025 from $53.9 million in Q2 2024, driven by higher sales realizations [29][30] Operational Highlights - The company had 29 days of downtime in Q2 2025, which included 23 days of planned annual maintenance and six additional days due to slower than expected start-up [11][25] - Total pulp production increased by approximately 8% to 457,117 ADMTs in Q2 2025 compared to 421,692 ADMTs in Q2 2024, attributed to fewer days of planned maintenance downtime [24][25] - Average per unit fiber costs increased by approximately 11% in Q2 2025 compared to Q2 2024, primarily due to higher costs at German mills [26][34] Strategic Initiatives - The company is implementing cost reduction initiatives under the "One Goal One Hundred" program, targeting $100 million in profitability improvement actions by the end of 2026, with approximately $5 million in cost savings realized to date [5][9] - The quarterly dividend has been suspended to prudently allocate capital amidst ongoing market uncertainties [9][12]

Core Points - The Government of British Columbia has approved a new First Nations Woodland Licence in the Smithers area, marking a significant milestone in the partnership between West Fraser Timber Co. Ltd. and Lake Babine Nation Forestry Limited Partnership [1][2] - This new licence is a result of contributions from West Fraser and LBN Forestry, aimed at enhancing timber tenure collaboration in British Columbia's forest sector [1][5] Company Overview - West Fraser is a diversified wood products company with over 50 facilities across Canada, the United States, the United Kingdom, and Europe, focusing on sustainable forest practices [8] - The company produces a variety of products including lumber, engineered wood products, pulp, and newsprint, which are utilized in home construction and industrial applications [8] Indigenous Partnership - The partnership between West Fraser and Lake Babine Nation is designed to integrate Indigenous knowledge with modern forestry practices, ensuring sustainable resource management and economic opportunities for the Lake Babine Nation [3][4] - Lake Babine Nation has established its forestry company in 2016, emphasizing the importance of growing its role in forestry and forest management [9] Economic Impact - The collaboration is expected to create jobs and strengthen the forest economy in British Columbia, benefiting local communities [8] - The new licence builds on previous agreements, including a Joint Development Agreement signed in April 2024 and a Log Supply and Forest Management Agreement signed in January 2025, indicating a long-term commitment to this partnership [7]

Company Overview - Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce and products [4] - The company operates state-of-the-art vertically integrated greenhouses and processing facilities in Belvidere, New Jersey, and Grand Rapids, Michigan, and has a network of contract growers strategically located near major markets in the U.S. [4] - Edible Garden's proprietary technologies include the GreenThumb software and Self-Watering in-store displays, aimed at optimizing growth and enhancing the in-store experience [4] Leadership Appointment - Sohail Ahmad has been appointed as Vice President of Finance, effective immediately, bringing over 20 years of experience in the food and consumer goods sectors [1][2] - Ahmad's previous roles include Chief Financial Officer at HOS Global Foods, a $300 million enterprise, and Global CFO at Guestworldwide, a $1.7 billion division of Sysco Corporation [2] - The CEO of Edible Garden, Jim Kras, emphasized Ahmad's strategic mindset and ability to lead transformation, which aligns with the company's growth trajectory and focus on operational efficiency [3] Product Lines and Market Position - Edible Garden offers a growing lineup of products, including Kick. Sports Nutrition, Vitamin Whey®, and Pulp, catering to health-conscious consumers [3] - The company has been recognized as a FoodTech 500 company and is a member of Walmart's Project Gigaton sustainability initiative [4] - Edible Garden is also involved in developing plant and whey protein powders, as well as fresh condiments, enhancing its product diversity [4]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $2,700,000, a decrease of 13.2% compared to $3,100,000 in Q1 2024, primarily due to the strategic exit from lower margin floral and lettuce categories [13][15] - Gross profit increased to $88,000 from $23,000 year over year, representing a 283% increase, while gross margin improved to 3.2% from 0.7% [10][14] - Net loss for Q1 2025 was $3,300,000, an improvement from a net loss of $4,000,000 in Q1 2024, driven by cost reductions and increased contributions from higher margin non-perishable product sales [15] Business Line Data and Key Metrics Changes - Non-perishable revenue grew 15% year over year, indicating strong performance from shelf-stable brands like Kick Sports Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Whey [7][13] - Cutter sales rose 13% on a seasonal basis, reflecting sustained consumer demand for freshness and convenience [7] Market Data and Key Metrics Changes - The company expanded relationships with major retailers including Walmart, Stop and Shop, and ShopRite, which are driving growth across both fresh and non-perishable categories [6][7] - The acquisition of Natural Shrimp Farms is expected to enhance operational capabilities and support the company's vertical integration strategy [11][41] Company Strategy and Development Direction - The company is realigning towards higher margin, shelf-stable products, which is gaining traction and contributing to margin expansion [6][8] - The acquisition of Natural Shrimp Farms is aimed at enhancing R&D capabilities and supporting sustainability initiatives [11][41] - The company is focused on expanding its national retail presence and leveraging patented in-store merchandising solutions [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic transformation and the potential for long-term value creation for customers and shareholders [12][41] - The company is optimistic about the growth of its non-perishable product lines and the positive impact of recent acquisitions on its operational foundation [41][42] Other Important Information - The company has been recognized in the FoodTech 500 as a top 50 company, highlighting its leadership in controlled environment agriculture [12] - Sustainability initiatives have helped avoid significant amounts of virgin plastic and conserve resources, reinforcing the company's commitment to environmental responsibility [12] Q&A Session Summary Question: Can you talk about the initial plans for Natural Shrimp and potential synergies? - Management highlighted immediate initiatives including leveraging the facility for warehousing and R&D, which will support expansion into new markets and enhance product offerings [18][19][21] Question: What were the revenues for Natural Shrimp in 2024, and will it be margin accretive? - Management indicated that current revenues are nominal, but future growth and margin improvements are expected as the business is expanded and integrated [24][25] Question: How did the sports nutrition line perform this quarter? - Management expressed enthusiasm about the sports nutrition line, noting new distribution agreements and upcoming product launches that are expected to drive growth [26][30] Question: What are the drivers behind the sustained improvement in gross margin? - Management attributed the improvement to strategic investments in people, products, and marketing, as well as a focus on SKU rationalization and diversification of the product portfolio [35][37]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $2,700,000, a decrease of 13.2% compared to $3,100,000 in Q1 2024, primarily due to the strategic exit from lower margin floral and lettuce products [13][14] - Gross profit increased to $88,000 from $23,000 year over year, representing a 283% increase, while gross margin improved to 3.2% from 0.7% [10][15] - Net loss for Q1 2025 was $3,300,000, an improvement from a net loss of $4,000,000 in Q1 2024, driven by cost reductions and increased contributions from higher margin non-perishable product sales [16] Business Line Data and Key Metrics Changes - Non-perishable revenue grew 15% year over year, indicating strong performance from shelf-stable brands like Kick Sports Nutrition, Pickle Party, Squeezables, Pulp, and Vitamin Whey [7][14] - Cutter sales rose 13% on a seasonal basis, reflecting sustained consumer demand for freshness and convenience [7] Market Data and Key Metrics Changes - The company expanded relationships with major retailers including Walmart, Stop and Shop, and ShopRite, which are driving growth across both fresh and non-perishable categories [6][7] - The acquisition of Natural Shrimp Farms is expected to enhance operational capabilities and support market penetration in the Midwest [11][21] Company Strategy and Development Direction - The company is focusing on a strategic transformation towards higher margin, shelf-stable products, which is gaining traction and visibility across the business [6][8] - The acquisition of Natural Shrimp Farms is aimed at strengthening the balance sheet, enhancing vertical integration, and supporting sustainability initiatives [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path forward, highlighting the strong foundation built through expanded retail relationships and growing e-commerce reach [46][47] - The commitment to sustainability remains central to the company's identity, with initiatives that have already shown measurable impact [12] Other Important Information - The company has been recognized in the FoodTech 500 as a top 50 company, reflecting its leadership in controlled environment agriculture [12] - The company is investing in marketing and branding to support the growth of its product lines [40] Q&A Session Summary Question: Can you talk about the initial plans for Natural Shrimp and potential synergies? - Management highlighted immediate initiatives including leveraging the facility for warehousing and R&D, which will support expansion into new markets and enhance logistics [20][21] Question: What were the revenues for Natural Shrimp in 2024, and will it be margin accretive? - Management indicated that current sales are nominal and not margin accretive, but future expansion and leveraging of the facility will lead to margin improvements [26][27] Question: How did the sports nutrition line perform this quarter? - Management expressed excitement about the sports nutrition line, noting new distribution in a major Midwest retailer and upcoming product launches [28][29]

Transforming biomass into bioproducts for a more sustainable world Q1 2025 Earnings Call May 2, 2025 Juan Carlos Bueno – President & CEO Richard Short – CFO, Executive VP & Secretary Mercer International Inc. Forward-looking Statements The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this presentation contains statements that are forward-looking, such as statements relating to results of operations and financial con ...