Suzano S.A. (SUZ) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 3, 2023 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 2023. [Operator Instructions] We would like to inform you that all participants will be in a listen-only mode during the presentation that will be addressed by the CEO, Mr. Walter Schalka, and other executive officers. After the company's remarks are completed, there will be a question-and-answer section when further instructions will be given. [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, everyone. It's a great pleasure to be with you. Welcome to the second quarter results presented by Suzano. With me year, we have a large part number of our steel level. Please be free at the end of the session of the presentation to make the questions to everyone. I think I would like to highlight at this point of time, the resiliency of the company. I think the company is very well prepared once again to navigate on this cycle with lower pulp prices. The company has been preparing ourselves. We know there is part of the volatility process that we are facing in our industry, and we are well prepared for this moment. I think it's very clear to all of us that the company has been devoting capital allocation to different initiatives. There is the preparing the company for the future. We are going to, during this session to go a little bit further on these discussions. I think on the sales side, the company had normal volumes on this season seasonality period of the time in pulp and paper. Our inventory level are below the optimum levels continue to be below optimal levels. The performance of the company we had during this quarter, BRL 3.9 billion on EBITDA. Our operating cash flow was BRL 2.2 billion. I think this is a very important KPI for us. There is meaning our EBITDA less sustainable investment CapEx. Our cash cost, and Aires is going to detail a little bit more on that. It's going down. We had 2% decrease during this quarter. And the company and Marcel is going to explore a little bit more on that. Aires is very well prepared for the cycle on our balance sheet. We have a very strong liquidity at this point of time.