Suzano S.A. (SUZ) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 28, 2022 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for holding, and welcome to Suzano's conference call to discuss the results for the Second Quarter of 2022. [Operator Instructions]

Before proceeding, please be aware that any forward-looking statements are based on the beliefs and assumptions of Suzano's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. You should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Suzano and could cause results to differ materially from those expressed in such forward-looking statements.

Now I would like to turn the floor over to the company's CEO. Please, Mr. Walter Schalka, you may proceed.

Walter Schalka

Good morning, good afternoon, good evening to our colleagues over the world. Welcome to the second quarter results discussions of Suzano. I'm pleased to have with us here all the C level of the organization in the Q&A session. Feel free to ask us about everything on the company.

I learned in the past that happiness is equal to results less expectations. I would like to -- despite of the reviews of the sell-side analysts that we are in line with the results, we are very pleased to announce outstanding results of the company. I'm very pleased to announce that to everyone. We have -- and I'm going to highlight several KPIs of the organization over the last quarter.

First, in terms of the pulp volumes, we had almost 2.7 million tons of sales on pulp. Leo is going to address this issue with you in his part of the presentation. On the paper side, we have extremely good volumes, around 290,000 tons on paper. And Fabio will share with you. We would like to tell you that we reached BRL 6.3 billion on EBITDA this quarter with operating cash flow of BRL 5.1 billion.

Aires is going to share with you as well our efforts. Despite of the inflation that we are facing, we have kept the cash cost in line with the previous quarter.

Our liquidity position is $5.2 billion at this point of time with a very robust balance sheet. And our net debt, despite of the fact that we had dividends, we have cash returns on buyback program, we have Parkia, there is BRL 1.7 billion, we had Cerrado, we were able to keep -- to get the net debt at the same level of the previous quarter with $10.5 billion. Our leverage right now is 2.3x.