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Suzano S.A.(SUZ) - 2024 Q4 - Annual Report
SUZSuzano S.A.(SUZ)2025-02-12 21:27
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Financial Performance - Net sales for the year ended December 31, 2024, were R47,403,282,anincreaseof1847,403,282, an increase of 18% compared to R39,755,575 in 2023[9] - Gross profit for 2024 was R20,001,755,upfromR20,001,755, up from R14,678,900 in 2023, reflecting a significant improvement in profitability[9] - The company reported a net loss of R7,044,706for2024,comparedtoanetincomeofR7,044,706 for 2024, compared to a net income of R14,106,381 in 2023, highlighting challenges faced during the year[9] - Earnings per share for 2024 were reported at R−5.59313,adeclinefromR-5.59313, a decline from R10.85794 in 2023, indicating a significant drop in shareholder value[9] - Net income for the year was a loss of 7,044,706,asignificantdecreasefromaprofitof7,044,706, a significant decrease from a profit of 14,106,381 in 2023[16] - Cash generated from operations increased to 23,751,750,comparedto23,751,750, compared to 20,510,846 in 2023, reflecting a growth of approximately 10.9%[16] Assets and Liabilities - Total assets increased to R165,936,105in2024,comparedtoR165,936,105 in 2024, compared to R143,593,025 in 2023, representing a growth of approximately 15.5%[5] - Total liabilities increased to R133,520,530in2024,upfromR133,520,530 in 2024, up from R98,782,725 in 2023, marking a rise of approximately 35%[7] - Trade accounts receivable rose to R9,132,860in2024,a339,132,860 in 2024, a 33% increase from R6,848,454 in 2023, indicating stronger sales performance[5] - Cash and cash equivalents at year-end were R9,018,818,anincreasefromR9,018,818, an increase from R8,345,871 in 2023, indicating improved liquidity[5] Equity and Dividends - Share capital remained unchanged at R9,269,281thousandasofDecember31,2023[13]−ThecompanyreportedatotalequityofR 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 R93,633thousandfor2023[13]−TheBoardofDirectorsapprovedthedistributionofinterestonequitytotalingR 93,633 thousand for 2023[13] - The Board of Directors approved the distribution of interest on equity totaling R2,500,000, 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 R22,200,000[32]−OnAugust30,2024,theCompanyacquired1522,200,000[32] - On August 30, 2024, the Company acquired 15% of Lenzing Aktiengesellschaft for EUR 229,971 (equivalent to R1,436,814), at a price of EUR 39.70 per share[37] - The Timber Transaction was completed on July 31, 2024, with a cash consideration of R2,143,821forthepurchaseof1002,143,821 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 US82.932 (equivalent to R452,153)[44]OperationalEfficiencyandFuturePlans−Thecompanyplanstofocusonexpandingitsmarketpresenceandenhancingoperationalefficienciestorecoverfromthefinancialchallengesfacedin2024[9]−Thecompanyoperates16industrialunits,including14inBraziland2intheUnitedStates,alongwith7technologycentersglobally[18]TaxandRegulatoryChanges−TheTaxReformenactedonDecember20,2023,introducesadualVATsystem,replacingexistingtaxessuchasPIS,COFINS,ICMS,andISS[50]−Atransitionperiodforthenewtaxsystemwilloccurfrom2026to2032,withnoimmediateimpactonfinancialstatementsasofDecember31,2024[53]AccountingPoliciesandFinancialReporting−TheconsolidatedfinancialstatementsarepreparedincompliancewithIFRSandexpressedinthousandsofBrazilianReais(R452,153)[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]