Suzano S.A. (SUZ): history, ownership, mission, how it works & makes money

A Brief History of Suzano S.A. (SUZ)

Foundation and Early Years

Suzano S.A. was founded in 1924 by the Suzano family in the state of São Paulo, Brazil. Initially, the company began as a small producer of cellulose, focusing on the paper market.

Expansion in the 20th Century

During the 1960s, Suzano expanded its operations significantly by investing in new technologies and increasing its production capacity. By the end of the 1970s, Suzano had established itself as a leading player in the Brazilian pulp and paper industry.

Merger with Bahia Sul

In 2009, Suzano merged with Bahia Sul, creating the second-largest pulp producer in the world. This merger increased Suzano’s production capacity to approximately 3.6 million tons of pulp annually.

Public Offering and Growth

In 2009, Suzano made its initial public offering (IPO), raising approximately R$ 1.6 billion. The funds were allocated toward expanding its production facilities and improving operational efficiency.

Recent Financial Performance

In 2022, Suzano reported a net revenue of R$ 28.6 billion, reflecting a growth of 35% year-on-year. The EBITDA for the same period was R$ 12.4 billion, with an EBITDA margin of 43.5%.

Global Presence and Production Capacities

• Annual production capacity of 11 million tons of market pulp.
• Operates 6 industrial units located in Brazil.
• Exports to over 50 countries worldwide.

Sustainability Initiatives

Suzano has made significant investments in sustainability, pledging to reach net-zero emissions by 2050. The company has invested approximately R$ 1 billion in sustainable practices and reforestation initiatives.

Financial Indicators (2022)

Stock Market Performance

Suzano S.A. is listed on the B3 (São Paulo Stock Exchange) under the ticker symbol SUZB3. As of October 2023, the company's stock price was approximately R$ 45.20, with a market capitalization of around R$ 83 billion.

Future Expectations

Analysts project that Suzano will continue to grow, with an expected annual revenue growth rate of around 10% for the next five years, driven by increasing global demand for sustainable products.

A Who Owns Suzano S.A. (SUZ)

Overview of Ownership Structure

Suzano S.A. is a publicly traded company listed on the B3 stock exchange in Brazil under the ticker symbol SUZ. As of October 2023, the company has a diverse ownership structure comprising various institutional and individual shareholders.

Major Shareholders

Institutional Holdings

Institutional investors play a significant role in the ownership of Suzano S.A. The following institutions are among the top shareholders:

• BlackRock, Inc. - 8% ownership
• Hermes Investment Management - 5% ownership
• Vanguard Group - 6% ownership
• JP Morgan Asset Management - 4% ownership

Recent Financial Data

As of the third quarter of 2023, Suzano S.A. reported the following financial highlights:

• Revenue: BRL 12 billion
• Net Income: BRL 3 billion
• EBITDA: BRL 5 billion
• Total Assets: BRL 25 billion

Corporate Governance

Suzano S.A. has a structured corporate governance framework that ensures transparency and accountability. The Board of Directors comprises a mix of executive and non-executive members, reflecting a balance of interests among stakeholders.

Foreign Ownership Perspectives

As Suzano S.A. is open to foreign investment, approximately 15% of its shares are held by international investors, reflecting a growing interest in the Brazilian market. Major foreign investors include:

• Fidelity Investments
• Capital Group
• AXA Investment Managers

Future Outlook

With the ongoing investments in sustainable forestry and innovations in pulp production, Suzano S.A. is well-positioned for growth. The company continues to focus on expanding its market share both domestically and internationally.

Suzano S.A. (SUZ) Mission Statement

Company Overview

Suzano S.A. is a prominent Brazilian company engaged in the production of pulp and paper products. Established in 1924, it has established a significant presence in both domestic and international markets.

Mission Statement

The mission of Suzano S.A. is to "provide solutions that contribute to the sustainable development of society, creating value for clients, employees, and the environment." This mission reflects a commitment to environmental sustainability and innovation.

Core Values

• Sustainability: Commitment to sustainable practices in all operations.
• Innovation: Continuous improvement and innovation in products and processes.
• Integrity: Upholding ethical standards in business operations.
• Collaboration: Working together with stakeholders for mutual benefit.

Financial Performance

As of Q2 2023, Suzano reported the following financial metrics:

Environmental Impact

Suzano has taken significant steps towards promoting environmental sustainability. In its 2022 sustainability report, it indicated:

Strategic Objectives

Suzano's strategic objectives include:

• Expand market share in international markets.
• Enhance innovation capabilities to develop new products.
• Increase operational efficiency and reduce costs.
• Strengthen commitment to sustainability initiatives.

Global Presence

Suzano operates in several countries and has established a strong global presence:

Research and Development

Suzano invests heavily in R&D to drive innovation, allocating approximately R$ 200 million annually to research initiatives. Key areas of focus include:

• Development of new paper grades.
• Improvement of production processes.
• Enhancing fiber technology.

Conclusion

Suzano S.A. continues to focus on its mission of sustainability, innovation, and value creation, driving significant growth and maintaining its position as a leader in the pulp and paper industry.

How Suzano S.A. (SUZ) Works

Company Overview

Suzano S.A. is a Brazilian company primarily focused on the production of pulp, paper, and forestry. As of 2023, it is one of the largest producers of hardwood pulp globally. The company operates in various segments, including the production of paper products, sustainable forestry, and renewable energy.

Financial Performance

In 2022, Suzano reported a revenue of approximately R$ 21.8 billion, with EBITDA reaching R$ 10.4 billion. The net income was R$ 5.1 billion, indicating a strong financial position.

Production Capacity

Suzano operates several production facilities in Brazil, with a combined pulp production capacity of approximately 10 million tons per year. The company uses advanced technologies to maintain high efficiency and sustainability.

Sustainable Forestry Practices

The company is heavily invested in sustainable forestry practices, managing over 1.5 million hectares of planted forests. Approximately 70% of the wood used comes from its own plantations, ensuring a controlled and environmentally friendly supply chain.

• Percentage of Total Production from Sustainable Sources: 100%
• Hectares of Planted Forests: 1.5 million
• Number of Tree Species Used: 2

Market Position

Suzano holds a significant position in the global market, controlling roughly 30% of the Brazilian market share for eucalyptus-based pulp. The company exports to over 60 countries.

Product Portfolio

• Pulp: 10 million tons/year
• Paper Products: 1.5 million tons/year
• Renewable Energy: 1.8 million MWh produced/year

Recent Developments

In late 2022, Suzano announced investments totaling R$ 3 billion aimed at expanding its production capacity and enhancing its sustainability initiatives. The company is also focusing on innovative products derived from pulp, such as bioenergy and bioplastics.

Global Reach

Suzano's global reach extends to major markets in North America, Europe, and Asia. The company maintains a robust logistics network, ensuring timely delivery of products.

Corporate Social Responsibility

Suzano actively engages in corporate social responsibility initiatives, focusing on environmental conservation and community development. The company allocates R$ 200 million annually for social projects in local communities.

Investments and Future Growth

Projected revenue growth for Suzano is estimated at 5-7% annually, driven by increasing demand for sustainable products and innovative services. The company continues to explore new technologies to enhance operational efficiency and reduce environmental impact.

How Suzano S.A. (SUZ) Makes Money

Overview of Business Segments

Suzano S.A. operates primarily in two segments: pulp and paper. The company is a leading producer of eucalyptus pulp, which is used in various applications including paper and packaging. In 2022, Suzano reported revenues of approximately R$ 24.5 billion (around USD 4.6 billion).

Pulp Production

The pulp segment generates the majority of Suzano's revenue. As of 2023, Suzano has a total capacity of 11 million tons of eucalyptus pulp annually. The company holds a 29% share of the global pulp market. The average selling price (ASP) for pulp in 2022 was approximately USD 573 per ton.

Paper Production

Suzano's paper division, which produces various grades of paper, including printing and writing paper, contributes significantly to the company’s revenue. The annual production capacity for paper is around 1.8 million tons. In 2022, the revenue from paper sales was approximately R$ 3.5 billion.

Geographic Revenue Distribution

Suzano’s revenue is diversified across multiple geographic regions. In 2022, approximately 60% of total sales were made outside Brazil, indicating a strong international presence.

Sustainability and Innovative Practices

Suzano has adopted sustainable practices, which enhance its market competitiveness. The company invested R$ 1.7 billion in sustainability initiatives in 2022. These practices not only attract consumers but also align with global environmental standards, providing potential cost savings and market advantages.

Cost Structure and Profitability

The cost of goods sold (COGS) for Suzano in 2022 was approximately R$ 14.5 billion. The gross margin was around 41%, reflecting effective cost management and operational efficiency. The EBITDA for the same year stood at R$ 10.3 billion, resulting in an EBITDA margin of 42%.

Future Growth and Projections

Looking ahead, Suzano is projected to grow its revenues by 10% per year over the next five years, driven by increased demand for sustainable products and expansion into new markets. The company has earmarked an additional R$ 2 billion for capital expenditures in the next fiscal year to enhance production capacity and efficiency.

Conclusion

Suzano S.A. utilizes a combination of robust product offerings, strategic geographical distribution, sustainability initiatives, and efficient operational practices to generate revenue and maintain profitability in a competitive market.