Suzano's net revenue increases in 2Q 2020

The company has also recorded a growth in its Adjusted EBITDA to BRL 4.2 billion

{reg}Brazil-based Suzano, one of the world's largest integrated pulp and paper producers, announced on August 13, on its website, its results for the second quarter of 2020.

Suzano's net revenue in the second quarter of 2020 was BRL 7.99 billion, 88 percent of which came from exports. Compared to last year's second quarter, it was a 20 percent growth from BRL 6.66 billion.

This increase in net revenue mainly reflected the 38 percent appreciation in the average price of the USD against the BRL, the 25 percent growth in pulp sales volume and the decrease in cash COGS, with these factors partially offset by the 26 percent drop in the average net pulp price in USD.

In the second quarter of 2020, the company posted a net loss of BRL 2.05 billion, compared to the net income of BRL 700 million in the same quarter of 2019 and the net loss of BRL 13.4 billion in the first quarter of the year. The variation in relation to 2019's result is explained by the net financial loss, which in turn is due to the effects from exchange variation on liabilities and by the gain/loss from derivative transactions.

The company recorded pulp sales of 2,778 thousand tons, a 25 percent increase from 2,214 thousand tons registered in the 2Q 2019.

Net revenue from the pulp segment was BLR 6.98 billion, 28 percent higher from BRL 5.45 billion recorded last year's second quarter, due mainly to a 38 percent appreciation in the average price of the USD against the BRL and the higher sales volume. These factors were partially offset by the 26 percent lower average net price in USD, which was USD 466/ton in the second quarter of the year, against USD 628/ton in the same period of 2019.

The average net pulp price in the export market in the second quarter of 2020 was USD 471/ton, compared to USD 631/ton in 2Q 2019.

The Adjusted EBITDA from pulp grew 41 percent to BRL 3.86 billion in 2Q 2020, from BRL 2.73 billion in the same quarter of 2019.

In the paper segment, the company's sales were 235,000 tons in the second quarter of 2020, 22 percent lower from 301,000 tons sold in the same quarter of 2019. In Brazil, Suzano's paper sales (printing and writing, paperboard and tissue) came to 140,000 tons in 2Q 2020, down 25 percent from the same period of 2019.

The paper businessÔÇÖ performance was boosted by exports, though affected by the slump in demand due to the pandemic, especially in the printing & writing segment.

Paper's average net price in the domestic market in the second quarter of 2020 was BRL 4,333/ton, representing an 4 percent or BRL 156 increase compared to the second quarter of 2019. The average net price of paper exported in the quarter was USD 803/ton, down 17 percent or USD 163/ton from 2Q 2019.

Net revenue from paper was BRL 1.02 billion in the second quarter of 2020, down by 22 percent from BRL 1.21 billion recorded in the same period last year, which was partially offset by the higher average net price in BRL (a 7 percent growth).

The Adjusted EBITDA from paper in 2Q 2020 was BRL 317 million, 13 percent lower compared to 2Q 2019, when it was BRL 366 million, reflecting the adverse scenario caused by the COVID-19 pandemic.

Paper and packaging sales in the quarter came to 3,013 thousand tons, increasing 20 percent in comparison to the second quarter of 2019.