Suzano announced its results for the 1Q 2018, with operating cash generation of R$1.3 billion ($361 million). The record cash flow was made possible by the operational advances obtained in recent quarters, the rigorous control of expenses and the favorable environment in the international pulp market. In the period from April 2017 to March 2018 (last 12 months), operating cash generation amounted to R$4.2 billion ($1.2 billion), which is an unprecedented mark in its 94‑year history.
The Company ended the quarter with net income of R$813 million ($226 million), compared to R$450 million ($125 million) in 1Q 2017.
Adjusted EBITDA in the 1Q 2018 came to R$1.5 billion ($416 million), advancing 80.4% on the same period of last year. This was the highest Adjusted EBITDA ever reported in the 1Q.
“The 1Q results reflect our constant concern with continually improving, gaining competitiveness and reinforcing our solid financial position,” said Walter Schalka, CEO of Suzano Pulp & Paper.
Return on invested capital (ROIC), the main management metric adopted, was 17.4% in the 1Q 2018. Meanwhile, pulp production cash cost ex-downtime stood at R$587 ($163) per ton in the period, virtually in line with a year earlier, despite the cumulative inflation in the period of 2.7%.
In the external environment, pulp demand remained strong, which contributed to the higher average price in the global market. As a result, Suzano reported net revenue of R$3 billion ($833 million) in the quarter, 33.1% more than in the first three months of last year.
Suzano is the second largest eucalyptus pulp producer and the fifth largest market pulp producer in the world.
