Suzano SA
For the period ended Dec 31, 2023. Filed Apr 26, 2024.
View on SEC.govAbout this filing
The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2023 · Filed Apr 26, 2024
Contents
29. SEGMENT INFORMATION
- SEGMENT INFORMATION
29.1. Criteria for identifying operating segments
The Board of Directors and Board of Statutory Executive Officers evaluates the performance of the Company’s business segments through EBITDA.
The operating segments defined by the Company’s management are set forth below:
i) Pulp: comprised of the production and sale of hardwood eucalyptus pulp and fluff pulp, mainly to supply the foreign market.
ii) Paper: comprises the production and sale of paper to meet the demands of both the domestic and foreign markets. Consumer goods (tissue) sales are classified under this segment due to their immateriality.
Information related to total assets by reportable segment is not disclosed, as it is not included in the set of information made available to the Company’s management, which makes investment decisions and determines the allocation of resources on a consolidated basis.
In addition, with respect to geographical information related to non-current assets, the Company does not disclose such information, as all property, plant and equipment, biological and intangible assets are in Brazil.
Suzano S.A. Explanatory notes to the consolidated financial statementsYear ended December 31, 2023 and 2022
29.2. Information of operating segments
| Pulp | Paper | Total | |
|---|---|---|---|
| Net sales | 30,677,265 | 9,078,310 | 39,755,575 |
| Domestic market (Brazil) | 2,144,199 | 6,719,093 | 8,863,292 |
| Foreign markets | 28,533,066 | 2,359,217 | 30,892,283 |
| Asia | 13,588,032 | 72,133 | 13,660,165 |
| Europe | 8,701,141 | 302,131 | 9,003,272 |
| North America | 5,682,010 | 476,429 | 6,158,439 |
| South and Central America | 558,601 | 1,437,181 | 1,995,782 |
| Africa | 3,282 | 71,343 | 74,625 |
| EBITDA | 16,052,028 | 3,485,370 | 19,537,398 |
| Depreciation, depletion and amortization | (7,321,110) | ||
| Operating profit before net financial income (“EBIT”) (1) | 12,216,288 | ||
| EBITDA margin (%) | 52.33% | 38.39% | 49.14% |
| Pulp · Paper · Total | ||||
|---|---|---|---|---|
| Net sales | 41,384,322 | 8,446,624 | 49,830,946 | |
| Domestic market (Brazil) | 2,665,746 | 5,858,892 | 8,524,638 | |
| Foreign markets | 38,718,576 | 2,587,732 | 41,306,308 | |
| Asia | 18,294,046 | 4,059 | 18,298,105 | |
| Europe | 12,768,321 | 325,503 | 13,093,824 | |
| North America | 7,055,625 | 608,734 | 7,664,359 | |
| South and Central America | 592,360 | 1,641,277 | 2,233,637 | |
| Africa | 8,224 | 8,159 | 16,383 | |
| EBITDA | 26,098,309 | 3,532,362 | 29,630,671 | |
| Depreciation, depletion and amortization | (7,407,890) | |||
| Operating profit before net financial income (“EBIT”) (1) | 22,222,781 | |||
| EBITDA margin (%) | 63.06% | 41.82% | 59.46% | |
Suzano S.A. Explanatory notes to the consolidated financial statementsYear ended December 31, 2023 and 2022
| Pulp | Paper | Total | |
|---|---|---|---|
| Net sales | 34,715,208 | 6,250,223 | 40,965,431 |
| Domestic market (Brazil) | 2,338,810 | 4,380,585 | 6,719,395 |
| Foreign markets | 32,376,398 | 1,869,638 | 34,246,036 |
| Asia | 15,952,786 | 43,961 | 15,996,747 |
| Europe | 10,477,292 | 318,666 | 10,795,958 |
| North America | 5,694,273 | 424,909 | 6,119,182 |
| South and Central America | 233,061 | 1,026,247 | 1,259,308 |
| Africa | 18,986 | 55,855 | 74,841 |
| EBITDA | 22,735,409 | 2,486,445 | 25,221,854 |
| Depreciation, depletion and amortization | (7,041,663) | ||
| Operating profit before net financial income (“EBIT”) (1) | 18,180,191 | ||
| EBITDA margin (%) | 65.49% | 39.78% | 61.57% |
29.3. Net sales by product
| Products | December 31, 2023 | December 31, 2022 | December 31, 2021 |
|---|---|---|---|
| Market pulp (1) | 30,677,265 | 41,384,322 | 34,715,208 |
| Printing and writing paper (2) | 7,567,320 | 6,912,984 | 5,107,960 |
| Paperboard | 1,417,075 | 1,421,338 | 1,091,588 |
| Other | 93,915 | 112,302 | 50,675 |
| 39,755,575 | 49,830,946 | 40,965,431 |
(1)Net sales of fluff pulp represent approximately 0.78% of total net sales, and therefore were included in market pulp net sales. (0.80% as of December 31, 2022).
(2)Net sales of tissue represent approximately 5.14% of total net sales, and therefore were included in printing and writing paper net sales. (2.3% as of December 31, 2022).
With regard to the foreign market revenues of the pulp operating segment, China and the USA are the main countries in terms of net revenue,41.36% and 15.32%, respectively, for the year ended December 31, 2023 (China and the USA represented 42.12% and 14.08%, respectively, on December 31, 2022).
With regard to the foreign market revenues of the paper operating segment, Argentina and the USA, are the main countries in relation to net revenue, representing 23.68% and 19.49%, respectively, for the year ended December 31, 2023 (USA, Peru and Argentina represented 23.49%,9.04% and 19.81% respectively, on December 31, 2022).
There is no other individual foreign country that represents more than 10% of net revenue in the foreign market for the years ended December 31, 2023 and December 31, 2022.
Suzano S.A. Explanatory notes to the consolidated financial statementsYear ended December 31, 2023 and 2022
29.4. Goodwill based on expected future profitability
The goodwill based on expected future profitability arising from the business combination was allocated to the disclosable segments, which correspond to the Company’s cash-generating units (“CGUs”), considering the economic benefits generated by such intangible assets. The allocation of goodwill is set out below:
| December 31, 2023 | December 31, 2022 | |
|---|---|---|
| Pulp | 7,897,051 | 7,897,051 |
| Paper | 290,191 | 119,332 |
| 8,187,242 | 8,016,383 |
Suzano S.A. Explanatory notes to the consolidated financial statementsYear ended December 31, 2023 and 2022
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