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 The forward-looking statements include, witho ...

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]

Industry Overview - The Zacks Paper and Related Products industry is benefiting from increased packaging demand driven by rising e-commerce activities and sustained demand from consumer-oriented sectors like food, beverages, and healthcare [1] - The industry is highly diversified, producing graphic paper, packaging paper, absorbent hygiene products, and more, catering to sectors such as food and beverage, healthcare, retail, and e-commerce [3][4] - The industry is positioned to capitalize on the growing consumer preference for environmentally friendly packaging solutions [1] Key Trends - E-commerce accounted for over 19% of global retail sales in 2023, projected to reach 25% by 2027, with global e-commerce revenues expected to hit $4,791 billion in 2025, presenting a major growth opportunity for the industry [5][6] - Increased merger and acquisition activities are transforming the industry, with notable examples like the formation of Smurfit Westrock and International Paper's acquisition of DS Smith to strengthen its corrugated packaging business in Europe [7][8] - Sustainability is a key driver, with the industry incorporating recycled content into production methods and investing in breakthrough technologies to meet demand for eco-friendly packaging [9] - Rising costs of transportation, chemicals, and fuel are being offset through pricing actions, cost reduction, and automation in manufacturing [10] Industry Performance - The Paper and Related Products industry has outperformed the Basic Materials sector and the S&P 500, with stocks gaining 42.5% over the past year compared to the sector's decline of 1.8% and the S&P 500's growth of 26.8% [13] - The industry is currently trading at a forward 12-month EV/EBITDA ratio of 9.24X, compared to the S&P 500's 13.96X and the Basic Materials sector's 6.64X [14] Key Companies - **Suzano**: Inaugurated the world's largest single-line pulp mill, increasing its installed pulp production capacity by 24% to 13.5 million tons per year Acquired industrial assets in Arkansas and North Carolina, positioning itself as a major supplier of paper for liquid packaging boards in North America Also acquired a 15% stake in Lenzing, aligning with its strategy to grow in new markets [15][16][17] - **Sylvamo**: Implemented a cost-reduction program, Project Horizon, achieving savings exceeding $110 million in 2024, with $80 million from operational improvements and the rest from reduced selling and administrative expenses The company has a pipeline of over $200 million in high-return capital projects to boost earnings and cash flow [18][19] - **International Paper**: Optimizing cost structure and investing in capacity expansion to meet demand for corrugated and containerboard packaging Its pending acquisition of DS Smith is expected to strengthen its European corrugated packaging business and generate $514 million in pre-tax cash synergies annually by the fourth year post-closure [21][22] - **Klabin**: Witnessed a 6% year-over-year increase in total sales volumes in the first nine months of 2024, driven by the ramp-up of Paper Machines 27 and 28, which have a combined annual production capacity of 910,000 tons of paper The company also expanded its corrugated cardboard conversion capacity to 1.2 million tons annually [24][25] Earnings and Valuation - Suzano's 2025 earnings estimate surged 39% in the past 60 days, indicating year-over-year growth of 364% [17] - Sylvamo's 2024 earnings estimates increased by 10.5% over the past 60 days, with year-over-year growth of 17.5% [20] - International Paper's 2025 earnings estimate moved up 3.4% over the past 60 days, indicating year-over-year growth of 156% [23] - Klabin's 2025 earnings estimate increased by 15% over the past 60 days, showing significant improvement from 2024's expected earnings [27]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Suzano (SUZ) as a strong value stock based on its financial metrics and Zacks Rank [2][3][6] Company Analysis - Suzano (SUZ) currently holds a Zacks Rank of 1 (Strong Buy) and has an "A" grade in the Value category, indicating it is among the strongest value stocks available [3] - The company's price-to-book (P/B) ratio is 1.79, which is lower than the industry average of 2.59, suggesting that SUZ is undervalued compared to its peers [4] - Over the past 12 months, SUZ's P/B ratio has fluctuated between a high of 1.93 and a low of 1.30, with a median of 1.69 [4] - Suzano's price-to-cash flow (P/CF) ratio stands at 5.50, significantly lower than the industry average of 13.66, further indicating potential undervaluation [5] - The P/CF ratio for SUZ has ranged from a high of 8.08 to a low of 3.11 over the past year, with a median of 5.25 [5] - These metrics collectively suggest that SUZ is likely undervalued and presents an impressive value opportunity based on its earnings outlook [6]

Company Overview - Suzano is a leader in hardwood pulp production, responsible for a third of global production [1] - The company is based in Salvador, Brazil and is listed on the NYSE under the ticker SUZ [1] Industry Position - Suzano holds a dominant position in the hardwood pulp industry [1]

Suzano S.A. (NYSE:SUZ) Q3 2024 Earnings Conference Call October 25, 2024 9:00 AM ET Company Participants Beto Abreu - CEO Fabio Oliveira - Executive Officer, Paper and Packaging Leonardo Grimaldi - Executive Officer, Commercial Pulp and Logistics Marcelo Bacci - CFO and IRO Aires Galhardo - Executive Officer, Pulp Operation Conference Call Participants Jon Brandt - HSBC Caio Ribeiro - Bank of America Daniel Sasson - Itaú BBA Marcio Farid - Goldman Sachs Rafael Barcellos - Bradesco BBI Lucas Laghi - XP Opera ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-a ...

Suzano S.A. (SUZ) announced that it closed the acquisition of two industrial assets from Pactiv Evergreen (PTVE) in Arkansas and North Carolina. This move will boost the company's operations across North America, entering consumer and food service packaging segments in the region. Details on SUZ's Pactiv Evergreen Assets' Buyout Deal On July 12, 2024, Suzano agreed to purchase the mills in Pine Bluff and Waynesville that produce liquid packaging boards and cupstock. This increases Suzano's production capaci ...

More than 5 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business rela ...

Suzano S.A. (SUZ) announced that it closed the previously mentioned acquisition of a 15% stake in Lenzing from its current majority stakeholder, B&C Group. This move will help Suzano expand in new markets. Details on Suzano's Deal With B&C In June 2024, Suzano and B&C announced that they would form a long-term syndicate to together hold a 52.25% stake in the Vienna-based cellulosic fibers supplier company, Lenzing. Per their deal, Suzano will acquire a 15% stake in Lenzing and B&C will hold the majority of ...