Suzano S.A.(SUZ) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for the three-month period ended March 31, 2025, reached R$11,552,921, a 22.1% increase compared to R$9,458,602 in the same period of 2024[9] - Gross profit for the same period was R$3,823,754, slightly up from R$3,758,732 year-over-year[9] - Net income for the period was R$6,348,178, a significant increase from R$220,032 in the prior year, reflecting a strong recovery[9] - Earnings per share increased to R$5.11735, compared to R$0.16755 in the previous year[9] - Net income for the three-month period ended March 31, 2025, was R$6,348,178, a significant increase from R$220,032 in the same period of 2024, representing a growth of approximately 2,788%[16] - Cash generated from operations for the period was R$6,176,563, compared to R$4,253,410 in the previous year, indicating a year-over-year increase of 45.2%[16] - The net income before taxes for the period was R$9,955,248, a substantial recovery from a loss of R$487,822 in the previous year[131] Assets and Liabilities - Total assets decreased to R$155,244,885 as of March 31, 2025, down from R$165,936,105 at the end of 2024[5] - Total liabilities were reduced to R$116,709,239 from R$133,520,530, indicating improved financial health[7] - Current liabilities decreased significantly from R$24,477,938 to R$13,189,891, reflecting better cash management[7] - Total assets at March 31, 2025, amounted to R$38,398,266, reflecting a decrease from R$44,603,775 at the end of the previous quarter[14] - The total equity at March 31, 2025, was R$38,535,646, a decrease from R$44,724,599 at the end of the previous quarter[14] - The company's total liabilities decreased to R$110,987,836 from R$127,361,288, a decrease of around 13.0%[41] - Loans, financing, and debentures were reported at R$91,042,571, down from R$101,435,531, reflecting a decrease of approximately 10.2%[41] Cash and Cash Equivalents - The cash and cash equivalents at the end of the period were R$9,914,505, an increase from R$4,203,126 at the end of the previous year[16] - As of March 31, 2025, the company reported cash and cash equivalents of R$9,914,505, an increase from R$9,018,818 as of December 31, 2024, reflecting a growth of approximately 9.9%[41] - The company's cash and cash equivalents increased to $8,157,219 as of March 31, 2025, compared to $6,496,039 as of December 31, 2024, reflecting a growth of approximately 25.6%[53] Trade Accounts Receivable - The company reported a decrease in trade accounts receivable by R$2,238,113, compared to an increase of R$373,116 in the same period last year[16] - Trade accounts receivable decreased to R$6,354,237 from R$9,132,860, representing a decline of about 30.5%[41] - The company reported trade accounts receivable of $4,539,485 as of March 31, 2025, down from $7,090,160 as of December 31, 2024, which is a decline of approximately 36.5%[53] Investments and Assets - Biological assets increased to R$22,861,555, up from R$22,283,001, indicating growth in the company's agricultural investments[5] - The Company reported a closing balance of biological assets at R$22,861,555 as of March 31, 2025, up from R$22,283,001 at December 31, 2024, reflecting a growth of 2.6%[139] - The total accumulated cost of property, plant, and equipment reached R$99,899,093 as of March 31, 2025, compared to R$98,731,202 at December 31, 2024, indicating an increase of 1.2%[145] Financial Management and Risk - The company maintained a conservative financial risk management approach, with no significant changes in policies compared to the previous year[38] - The company continues to monitor hardwood pulp prices and adjust forecasts to mitigate risks associated with price variations[72] - Interest rate fluctuations could impact the costs of new loans and existing operations, prompting the company to seek alternatives to mitigate these risks[62] - The company is exposed to pulp and commodity price risks, which may impact operating results due to global market dynamics and macroeconomic conditions[71] Taxation and Incentives - The company benefits from tax incentives for operations in specific regions, which include a partial reduction of income tax based on production levels[133] - The company is subject to OECD Pillar Two model rules starting in 2024, which aim for a minimum effective tax rate of 15% on profits in certain jurisdictions[136] - The company recognized a current income tax expense of R$57,542 for the period, compared to R$90,923 in the previous year[131] Shareholder and Equity Information - The company repurchased shares worth R$38,664 during the period, compared to R$309,952 in the previous year, indicating a decrease of 87.5%[16] - The average share price of Spinnova Plc was EUR0.52 on March 31, 2025, down from EUR0.95 on December 31, 2024[144] - The company granted 2,980,111 stock options with a total fair value of R$61.39 on the grant date for 2025[198] Legal and Contingencies - The company has 54 tax and social security proceedings as of March 31, 2025, down from 58 as of December 31, 2024[182] - The company has 1,094 labor lawsuits as of March 31, 2025, a decrease from 1,178 as of December 31, 2024[183] - The total amount of contingencies with possible losses is R$11,137,276 as of March 31, 2025, down from R$15,074,276 at the end of 2024, indicating a decrease of 26.1%[187]