Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2023 | |
Document and Entity Information | |
Entity Registrant Name | Suzano S.A. |
Document Type | 6-K/A |
Current Fiscal Year End Date | --12-31 |
Document Period End Date | Jun. 30, 2023 |
Entity Central Index Key | 0000909327 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT | ||
Cash and cash equivalents | R$ 11860415 | R$ 9505951 |
Marketable securities | 7,913,730 | 7,546,639 |
Trade accounts receivable | 6,488,192 | 9,607,012 |
Inventories | 6,422,496 | 5,728,261 |
Recoverable taxes | 747,847 | 549,580 |
Derivative financial instruments | 3,747,881 | 3,048,493 |
Advances to suppliers | 103,181 | 108,146 |
Dividends receivable | 7,334 | |
Other assets | 778,557 | 1,021,234 |
Total current assets | 38,062,299 | 37,122,650 |
NON-CURRENT | ||
Marketable securities | 441,140 | 419,103 |
Recoverable taxes | 1,357,354 | 1,406,363 |
Deferred taxes | 147,638 | 3,986,415 |
Derivative financial instruments | 1,731,906 | 1,825,256 |
Advances to suppliers | 1,981,199 | 1,592,132 |
Judicial deposits | 342,017 | 362,561 |
Other assets | 289,433 | 279,955 |
Biological assets | 16,914,120 | 14,632,186 |
Investments | 640,269 | 612,516 |
Property, plant and equipment | 56,028,308 | 50,656,634 |
Right of use | 5,230,789 | 5,109,226 |
Intangible | 15,112,147 | 15,192,971 |
Total non-current assets | 100,216,320 | 96,075,318 |
TOTAL ASSETS | 138,278,619 | 133,197,968 |
CURRENT | ||
Trade accounts payable | 6,347,954 | 6,206,570 |
Loans, financing and debentures | 5,532,543 | 3,335,029 |
Lease liabilities | 710,906 | 672,174 |
Derivative financial instruments | 483,512 | 667,681 |
Taxes payable | 425,156 | 449,122 |
Payroll and charges | 629,911 | 674,525 |
Liabilities for assets acquisitions and subsidiaries | 101,207 | 1,856,763 |
Dividends payable | 2,678 | 5,094 |
Advances from customers | 74,538 | 131,355 |
Other liabilities | 541,190 | 494,230 |
Total current liabilities | 14,849,595 | 14,492,543 |
NON-CURRENT | ||
Loans, financing and debentures | 68,999,788 | 71,239,562 |
Lease liabilities | 5,485,078 | 5,510,356 |
Derivative financial instruments | 1,735,204 | 4,179,114 |
Liabilities for assets acquisitions and subsidiaries | 179,657 | 205,559 |
Provision for judicial liabilities | 3,175,080 | 3,256,310 |
Employee benefit plans | 701,933 | 691,424 |
Deferred taxes | 11,377 | 1,118 |
Share-based compensation plans | 183,589 | 162,117 |
Advances from customers | 136,161 | 136,161 |
Other liabilities | 121,144 | 157,339 |
Total non-current liabilities | 80,729,011 | 85,539,060 |
TOTAL LIABILITIES | 95,578,606 | 100,031,603 |
EQUITY | ||
Share capital | 9,235,546 | 9,235,546 |
Capital reserves | 22,584 | 18,425 |
Treasury shares | (1,381,600) | (2,120,324) |
Profit reserves | 22,690,645 | 24,207,869 |
Other reserves | 1,650,150 | 1,719,516 |
Retained earnings | 10,370,124 | |
Controlling shareholders' | 42,587,449 | 33,061,032 |
Non-controlling interest | 112,564 | 105,333 |
Total equity | 42,700,013 | 33,166,365 |
TOTAL LIABILITIES AND EQUITY | R$ 138278619 | R$ 133197968 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||
NET SALES | R$ 9159634 | R$ 11519655 | R$ 20436017 | R$ 21262490 |
Cost of sales | (6,228,181) | (6,122,925) | (12,196,855) | (11,555,765) |
GROSS PROFIT | 2,931,453 | 5,396,730 | 8,239,162 | 9,706,725 |
OPERATING INCOME (EXPENSES) | ||||
Selling | (626,809) | (625,567) | (1,231,162) | (1,197,708) |
General and administrative | (427,208) | (364,768) | (817,443) | (701,232) |
Income (expense) from associates and joint ventures | (14,052) | 19,049 | 419 | 9,307 |
Other, net | 1,205,293 | 161,993 | 1,183,989 | 159,426 |
OPERATING PROFIT BEFORE NET FINANCIAL INCOME | 3,068,677 | 4,587,437 | 7,374,965 | 7,976,518 |
NET FINANCIAL INCOME (EXPENSES) | ||||
Financial expenses | (1,149,041) | (1,133,402) | (2,308,066) | (2,183,523) |
Financial income | 404,137 | 194,283 | 789,898 | 352,567 |
Derivative financial instruments | 2,903,766 | (1,575,557) | 4,899,019 | 4,620,886 |
Monetary and exchange variations, net | 2,376,817 | (4,459,984) | 3,624,935 | 3,170,689 |
NET INCOME (LOSS) BEFORE TAXES | 7,604,356 | (2,387,223) | 14,380,751 | 13,937,137 |
Income and social contribution taxes | ||||
Current | (97,226) | (63,703) | (211,003) | (122,637) |
Deferred | (2,429,507) | 2,632,715 | (3,849,332) | (3,326,601) |
NET INCOME FOR THE PERIOD | 5,077,623 | 181,789 | 10,320,416 | 10,487,899 |
Attributable to | ||||
Controlling shareholders' | 5,073,127 | 175,625 | 10,310,498 | 10,480,342 |
Non-controlling interest | R$ 4496 | R$ 6164 | R$ 9918 | R$ 7557 |
Earnings (loss) per share | ||||
Basic | R$ 3.90544 | R$ 0.13057 | R$ 7.87524 | R$ 7.77949 |
Diluted | R$ 3.90397 | R$ 0.13054 | R$ 7.87231 | R$ 7.77825 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
Net income for the period | R$ 5077623 | R$ 181789 | R$ 10320416 | R$ 10487899 |
Other comprehensive income (loss) | ||||
Fair value investments in equity measured at fair value through other comprehensive income | (742) | 1,775 | (1,376) | (2,058) |
Tax effect on the fair value of investments | 252 | (603) | 468 | 700 |
Items with no subsequent effect on income | (490) | 1,172 | (908) | (1,358) |
Exchange rate variation on conversion of financial information of subsidiaries abroad | 11,607 | 3,001 | (8,832) | (6,852) |
Realization of exchange variation on investments abroad | (14) | (14) | ||
Items with subsequent effect on income | 11,607 | 2,987 | (8,832) | (6,866) |
Total comprehensive income | 5,088,740 | 185,948 | 10,310,676 | 10,479,675 |
Attributable to | ||||
Controlling shareholders' | 5,084,244 | 179,784 | 10,300,758 | 10,472,118 |
Non-controlling interest | R$ 4496 | R$ 6164 | R$ 9918 | R$ 7557 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - BRL (R$) R$ in Thousands | Share Capital | Share issuance costs | Stock options granted | Treasury shares | Tax incentives | Legal Reserve | Reserve for capital increase | Special statutory reserve | Investment reserve | Dividends proposed | Other reserves | Retained earnings (losses) | Total | Non-controlling interest | Total |
Beginning balances at Dec. 31, 2021 | R$ 9269281 | R$ 33735 | R$ 15455 | R$ 218265 | R$ 812909 | R$ 235019 | R$ 2513663 | R$ 279344 | R$ 0 | R$ 86889 | R$ 2114907 | R$ 0 | R$ 15075467 | R$ 99663 | R$ 15175130 |
Total comprehensive income | |||||||||||||||
Net income for the period | 10,480,342 | 10,480,342 | 7,557 | 10,487,899 | |||||||||||
Other comprehensive income for the period | (8,224) | (8,224) | (8,224) | ||||||||||||
Transactions with shareholders: | |||||||||||||||
Stock options granted | 2,668 | 2,668 | 2,668 | ||||||||||||
Shares granted | (2,365) | 2,365 | |||||||||||||
Shares repurchased | (601,551) | (601,551) | (601,551) | ||||||||||||
Unclaimed dividends forfeited | 194 | 194 | 194 | ||||||||||||
Fair value attributable to non-controlling interests | (2,539) | (2,539) | |||||||||||||
Proposed additional dividend payment | (97) | (86,889) | (86,986) | (86,986) | |||||||||||
Payment of supplementary dividends | (719,903) | (80,000) | (799,903) | (799,903) | |||||||||||
Internal changes in equity: | |||||||||||||||
Proposed minimum mandatory dividends | (502) | 502 | |||||||||||||
Realization of deemed cost, net of taxes | (57,845) | 57,845 | |||||||||||||
Ending balances at Jun. 30, 2022 | 9,269,281 | (33,735) | 15,758 | (817,451) | 812,407 | 235,019 | 1,794,165 | 199,344 | 0 | 0 | 2,048,838 | 10,538,381 | 24,062,007 | 104,681 | 24,166,688 |
Beginning balances at Dec. 31, 2021 | 9,269,281 | (33,735) | 15,455 | (218,265) | 812,909 | 235,019 | 2,513,663 | 279,344 | 0 | 86,889 | 2,114,907 | 0 | 15,075,467 | 99,663 | 15,175,130 |
Transactions with shareholders: | |||||||||||||||
Shares repurchased | (1,904,424) | ||||||||||||||
Ending balances at Dec. 31, 2022 | 9,269,281 | (33,735) | 18,425 | (2,120,324) | 879,278 | 1,404,099 | 19,732,050 | 2,192,442 | 0 | 0 | 1,719,516 | 0 | 33,061,032 | 105,333 | 33,166,365 |
Total comprehensive income | |||||||||||||||
Net income for the period | 10,310,498 | 10,310,498 | 9,918 | 10,320,416 | |||||||||||
Other comprehensive income for the period | (9,740) | (9,740) | (9,740) | ||||||||||||
Transactions with shareholders: | |||||||||||||||
Shares granted | 4,159 | 4,159 | 4,159 | ||||||||||||
Shares repurchased | (778,500) | (778,500) | (778,500) | ||||||||||||
Treasury shares cancelled | 1,517,224 | (1,517,224) | |||||||||||||
Fair value attributable to non-controlling interests | (2,687) | (2,687) | |||||||||||||
Internal changes in equity: | |||||||||||||||
Constitution of reserves | (14,972,324) | 14,972,324 | |||||||||||||
Realization of deemed cost, net of taxes | (59,626) | 59,626 | |||||||||||||
Ending balances at Jun. 30, 2023 | R$ 9269281 | R$ 33735 | R$ 22584 | R$ 1381600 | R$ 879278 | R$ 1404099 | R$ 4759726 | R$ 675218 | R$ 14972324 | R$ 0 | R$ 1650150 | R$ 10370124 | R$ 42587449 | R$ 112564 | R$ 42700013 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
OPERATING ACTIVITIES | ||
Net income for the period | R$ 10320416 | R$ 10487899 |
Adjustment to | ||
Depreciation, depletion and amortization | 3,451,862 | 3,505,869 |
Depreciation of right of use | 141,654 | 109,860 |
Sublease of ships | (11,314) | |
Interest expense on lease liabilities | 223,237 | 210,597 |
Result from sale and disposal of property, plant and equipment and biological assets, net | 111,195 | (8,041) |
Income (expense) from associates and joint ventures | (419) | (9,307) |
Exchange rate and monetary variations, net | (3,624,935) | (3,170,689) |
Interest expenses on financing, loans and debentures, net | 2,309,587 | 1,851,948 |
Capitalized loan costs | (511,650) | (108,972) |
Accrual of interest on marketable securities | (529,887) | (279,092) |
Amortization of transaction costs | 32,421 | 36,838 |
Derivative gains, net | (4,899,019) | (4,620,886) |
Fair value adjustment of biological assets | (1,256,315) | (171,618) |
Deferred income tax and social contribution | 3,849,332 | 3,326,601 |
Interest on actuarial liabilities | 34,615 | 29,616 |
Provision for judicial liabilities, net | 62,154 | 63,001 |
Tax litigation reduction program | 14,031 | |
Provision for doubtful accounts, net | 10,287 | 2,088 |
Provision for inventory losses, net | (854) | (9,519) |
Provision for loss of ICMS credits, net | 202,961 | 34,676 |
Other | 10,494 | 7,501 |
Decrease (increase) in assets | ||
Trade accounts receivables | 2,573,633 | 464,246 |
Inventories | (372,295) | (744,261) |
Recoverable taxes | (335,807) | (168,111) |
Other assets | 235,459 | 69,152 |
Increase (decrease) in liabilities | ||
Trade accounts payables | (105,036) | 997,290 |
Taxes payable | 82,064 | 90,938 |
Payroll and charges | (63,898) | (67,050) |
Other liabilities | (158,527) | (180,291) |
Cash generated from operations | 11,806,760 | 11,738,969 |
Payment of interest on financing, loans and debentures | (2,352,484) | (1,919,402) |
Capitalized loan costs paid | 511,650 | 108,972 |
Interest received from marketable securities | 391,601 | 229,925 |
Payment of income taxes | (89,482) | (94,393) |
Cash provided by operating activities | 10,268,045 | 10,064,071 |
INVESTING ACTIVITIES | ||
Additions to property, plant and equipment | (5,759,447) | (3,397,882) |
Additions to intangible | (197) | (69,100) |
Additions to biological assets | (2,899,032) | (2,135,997) |
Proceeds from sale of property, plant and equipment | 97,412 | 98,328 |
Capital increase in subsidiaries and affiliates | (35,075) | (26,863) |
Marketable securities, net | (683,505) | (4,691,843) |
Advances for acquisition (receipt) of wood from operations with development and partnerships | (410,024) | (174,490) |
Dividends received | 4,869 | 6,604 |
Asset acquisition | (1,615,140) | (1,699,869) |
Acquisition of subsidiaries | (1,072,657) | |
Net cash from acquisition of subsidiaries | 5,002 | |
Cash used in investing activities | (12,367,794) | (12,091,112) |
FINANCING ACTIVITIES | ||
Proceeds from loans, financing and debentures | 5,276,816 | 265,090 |
Receipt of derivative transactions | 1,664,900 | 186,312 |
Payment of loans, financing and debentures | (765,533) | (853,625) |
Payment of leases | (577,132) | (499,372) |
Payment of dividends | (2,415) | (1,801,562) |
Liabilities for assets acquisitions and associates | (16,929) | (109) |
Shares repurchased | (721,052) | (502,065) |
Cash provided (used) by financing activities | 4,858,655 | (3,205,331) |
EXCHANGE VARIATION ON CASH AND CASH EQUIVALENTS | (404,442) | (646,323) |
Increase (decrease) in cash and cash equivalents, net | 2,354,464 | (5,878,695) |
At the beginning of the period | 9,505,951 | 13,590,776 |
At the end of the period | R$ 11860415 | R$ 7712081 |
COMPANY'S OPERATIONS
COMPANY'S OPERATIONS | 6 Months Ended |
Jun. 30, 2023 | |
COMPANY'S OPERATIONS | |
COMPANY'S OPERATIONS | 1. Suzano S.A. (“Suzano”) and its subsidiaries (collectively the “Company”) is a public company with its headquarters in Brazil, at Avenida Professor Magalhães Neto, No. 1,752 - 10 th Suzano’s shares are traded on B3 S.A. (“ Brasil, Bolsa, Balcão - The Company has 13 industrial units, located in the cities of Cachoeiro de Itapemirim and Aracruz (Espírito Santo State), Belém (Pará State), Eunápolis and Mucuri (Bahia State), Maracanaú (Ceará State), Imperatriz (Maranhão State), Jacareí, Limeira, Suzano, Rio Verde and Mogi das Cruzes (São Paulo State) and Três Lagoas (Mato Grosso do Sul State). Additionally, it has five technology centers, 23 distribution centers and three ports, all located in Brazil. These units produce hardwood pulp from eucalyptus, coated paper, paperboard, uncoated paper and cut size paper and packages of sanitary paper (consumer goods - tissue) to serve the domestic and foreign markets. Pulp and paper are sold in foreign markets by Suzano, as well as through its wholly-owned subsidiaries and/or its sales offices in Argentina, Austria, China, Ecuador, United States of America, and Singapore. The Company’s operations also include the commercial management of eucalyptus forest for its own use, the operation of port terminals, and the holding of interests, as a partner or shareholder, in other companies or enterprises, and the generation of electricity in the pulp production process and its commercialization. The Company is controlled by Suzano Holding S.A., through a voting agreement whereby it holds 47.12% of the common shares of its share capital. These unaudited condensed consolidated interim financial information was authorized by the Board of Directors on August 1, 2023. 1.1. Equity interests The Company holds equity interests in the following entities: % equity interest June 30, December 31, Entity/Type of investment Main activity Country 2023 2022 Consolidated F&E Tecnologia do Brasil S.A. (Direct) Biofuel production, except alcohol Brazil 100.00 % 100.00 % Fibria Celulose (USA) Inc. (Direct) Business office United States of America 100.00 % 100.00 % Fibria Overseas Finance Ltd. (Direct) Financial fundraising Cayman Island 100.00 % 100.00 % Fibria Terminal de Celulose de Santos SPE S.A. (Direct) Port operations Brazil 100.00 % 100.00 % FuturaGene Ltd. Biotechnology research and development England 100.00 % 100.00 % FuturaGene Delaware Inc. (Indirect) Biotechnology research and development United States of America 100.00 % 100.00 % FuturaGene Israel Ltd. (Indirect) Biotechnology research and development Israel 100.00 % 100.00 % FuturaGene Inc. (Indirect) Biotechnology research and development United States of America 100.00 % 100.00 % Maxcel Empreendimentos e Participações S.A. (Direct) Holding Brazil 100.00 % 100.00 % Itacel - Terminal de Celulose de Itaqui S.A. (Indirect) Port operations Brazil 100.00 % 100.00 % MMC Brasil Indústria e Comércio Ltda (Direct) (1) Industrialization and commercialization of wipes, cleaning and sanitary products. Brazil 100.00 % Mucuri Energética S.A. (Direct) Power generation and distribution Brazil 100.00 % 100.00 % Paineiras Logística e Transportes Ltda. (Direct) Road freight transport Brazil 100.00 % 100.00 % Portocel - Terminal Espec. Barra do Riacho S.A. (Direct) Port operations Brazil 51.00 % 51.00 % Projetos Especiais e Investimentos Ltda. (Direct) Commercialization of equipment and parts Brazil 100.00 % 100.00 % SFBC Participações Ltda. (Direct) Packaging production Brazil 100.00 % 100.00 % Stenfar S.A. Indl. Coml. Imp. Y. Exp. (Direct) Commercialization of paper and computer materials Argentina 100.00 % 100.00 % Suzano Austria GmbH. (Direct) Business office Austria 100.00 % 100.00 % Suzano Canada Inc. (Direct) Lignin research and development Canada 100.00 % 100.00 % Suzano Ecuador S.A.S. (Direct) (2) Commercialization of paper Ecuador 100.00 % Suzano Finland Oy (Direct) Industrialization and commercialization of cellulose, microfiber cellulose and paper Finland 100.00 % 100.00 % Suzano International Finance B.V (Direct) Financial fundraising Netherlands 100.00 % 100.00 % Suzano International Trade GmbH. (Direct) Business office Austria 100.00 % 100.00 % Suzano Material Technology Development Ltd. (Direct) Biotechnology research and development China 100.00 % 100.00 % Suzano Operações Industriais e Florestais S.A. (Direct) Industrialization, commercialization and exporting of pulp Brazil 100.00 % 100.00 % Suzano Pulp and Paper America Inc. (Direct) Business office United States of America 100.00 % 100.00 % Suzano Pulp and Paper Europe S.A. (Direct) Business office Switzerland 100.00 % 100.00 % Suzano Shanghai Ltd. (Direct) Business office China 100.00 % 100.00 % Suzano Shanghai Trading Ltd. (Direct) (3) Business office China 100.00 % Suzano Singapura Pte. Ltd (Direct) (4) Business office Singapore 100.00 % Suzano Trading International KFT(Direct) Business office Hungary 100.00 % 100.00 % Suzano Ventures LLC (Direct) Corporate venture capital United States of America 100.00 % 100.00 % % equity interest June 30, December 31, Entity Main activity Country 2023 2022 Joint operation Veracel Celulose S.A. (Direct) Industrialization, commercialization and exporting of pulp Brazil 50.00 % 50.00 % Equity Biomas Serviços Ambientais, Restauração e Carbono S.A. (Direct) (5) Restoration, conservation and preservation of forests Brazil 16.66 % 100.00 % Ensyn Corporation (Direct) (6) Biofuel research and development United States of America 26.07 % 26.59 % F&E Technologies LLC (Direct/Indirect) Biofuel production, except alcohol United States of America 50.00 % 50.00 % Ibema Companhia Brasileira de Papel (Direct) Industrialization and commercialization of paperboard Brazil 49.90 % 49.90 % Spinnova Plc (Direct) Research of sustainable raw materials for the textile industry Finland 19.03 % 19.03 % Woodspin Oy (Direct/Indirect) Development and production of cellulose-based fibers, yarns and textile filaments Finland 50.00 % 50.00 % Fair value through other comprehensive income Celluforce Inc. (Direct) Nanocrystalline pulp research and development Canada 8.28 % 8.28 % 1) On June 1, 2023, the Company completed the acquisition of MMC Brasil Indústria e Comércio Ltda.(Note 1.2.3.) 2) On March 8, 2023, establishment of legal entity with full equity interest from Suzano S.A. 3) On May 19, 2023, establishment of legal entity with full equity interest from Suzano S.A. 4) On May 23, 2023, establishment of legal entity with full equity interest from Suzano S.A. 5) On February 27 and March 21, 2023, equivalent contributions were made by the six shareholders of Biomas to constitute an equity interest (Note 1.2.6). 6) On May 17, 2023, the percentage of interest was changed due to the dilution of the shares. 1.2. 1.2.1. The Company has continuously monitored the impacts of the current conflict between Russia and Ukraine, both direct and indirect, on society, the economy and markets (global and domestic), with the objective of evaluating possible impacts and risks for the business. The Company’s assessment has covered four main areas: (i) Personnel: Suzano does not have employees or facilities of any nature in any of the locations directly impacted by the conflict. (ii) Supply Chain: the Company did not identify any short-term or long-term risk of possible interruptions or shortages of materials for its industrial and forestry activities. So far, the only effects observed have been greater volatility in commodities and energy prices. (iii) Logistics: internationally, there was no change in the Company’s logistical operations, with all the routes used remaining unchanged and the moorings in the planned locations being maintained. At the domestic level, no changes in logistical flows were identified. (iv) Commercial: to date, the Company has continued with its transactions as planned, maintaining service to its customers in all its sectors of activity. Sales to a few customers located in Russia were suspended, without any significant financial impact. As a result of the current scenario, the Company has taken steps to expand its monitoring of the situation, together with its main stakeholders, in order to ensure any updates and information flows required for its global decision-making are available in a timely manner. 1.2.2. On October 28, 2021, the Company’s Board of Directors approved the realization of the Cerrado Project, which consists of building a pulp production mill in the municipality of Ribas do Rio Pardo, in the state of Mato Grosso do Sul. The plant will have an estimated nominal capacity of 2,550,000 tons of eucalyptus pulp production per year, with an estimated period for starting operations in the second semester of 2024. The total investment is R $22,200,000 , with payments during the years of 2021 to 2024. 1.2.3. On June 1 2023, the Company acquired the totality of the quotas held by Kimberly-Clark Brasil Indústria e Comércio de Produtos de Higiene Ltda. (“KC Brasil”) in MMC Brasil Indústria e Comércio Ltda (“MMC Brasil”) for the consideration of US $212,029 million (equivalent to R $1,072,657 ) paid in cash (“Transaction”). MMC Brasil had no operations until the contribution made by KC Brasil as a result of the carve out carried out in May 25, 2023 of the assets related to the business of manufacturing, marketing, distributing and selling of tissue products, including toilet paper, paper towels, napkins, tissues, as well as other paper products in Brazil, including ownership of the brand “NEVE” of KC Brasil. The following table summarizes the allocation of the preliminary purchase price: Total purchase consideration (full payment on closing) 1,072,657 Book value of Shareholders’ Equity of MMC Brasil 587,226 Fair value adjustment Inventories (1) 7,120 Property, plant and equipment (2) 105,858 Trademark and patents (3) 189,655 Net identifiable assets acquired 889,859 Goodwill (4) 182,798 (1) Measured considering the balance of finished products based on selling price, net of selling expenses. (2) Measured based on the analysis of market data on comparable transactions and cost quantification, based on the estimate of replacement or replacement value of the assets. (3) Measured based on revenue projections for products under the evaluated brands, according to the Refief from Royalties methodology. (4) Goodwill is attributable to the workforce and expected future profitability of the acquired business. It will be deductible for tax purposes. No deferred tax was recognized on the fair value adjustments as there is an expectation of merging MMC within the fiscal year of 2023. Considering the fact that MMC Brasil was created based on a carve out of a portion of the KC Brasil businesses, counterparty of the transaction, there is no previous history of revenue and/or profits specifically for the acquired entity to be considered or included in a pro forma consolidated revenue and pro forma consolidated profit as if the acquisition had occurred on January 1, 2023. Acquisition related costs of R $12,105 are included in administrative expenses in profit or loss. 1.2.4. On February 8, 2023, the Federal Supreme Court in Brazil concluded the judgments of Items 881 and 885, which discussed the effects of res judicata. Notwithstanding, considering the information available as of the date of these unaudited condensed consolidated interim financial information, the Company is not a party to any litigation related to a tax not being collected due to a past decision considered unappealable, therefore, the Company has no material adjustment due to the decision. 1.2.5. Treasury shares cancelled On February 28, 2023, the Board of Directors decided to cancel 37,145,969 common shares, with an average cost of R $40.84 (forty reais and eighty-four cents) per share, in the amount of R $1,517,224 , that were being held in treasury, without changing the share capital and against the balances of available profit reserves. After the cancellation of shares, the share capital of R $9,269,281 is now divided into 1,324,117,615 common shares, all nominative, book-entry and without par value. 1.2.6. Biomas On September 5, 2022, Biomas Serviços Ambientais, Restauração e Carbono Ltda. (“Biomas”) was initially established by Suzano S.A. On November 12, 2022, Suzano in partnership with Itaú Unibanco S.A, Marfrig Global Foods S.A., Rabobank Foundational Investments B.B., Santander Corretora de Seguros, Investimentos e Serviços S.A. and Vale S.A., announced an alliance during an event held at the Climate Conference, COP27, in Egypt, for the creation of a company focused entirely to forest restoration, conservation and preservation activities in Brazil. After the transformation of Biomas into a joint venture, Suzano, together with Marfrig, Rabobank and Vale, made a commitment to invest R $20,000 each partner, in accordance to the terms of the respective investment agreements on February 27, 2023, once the conditions precedent and closing acts established in said agreements were fulfilled. Itaú and Santander made their respective capital contributions on March 21, 2023. For the period ended June 30, 2023, the amount of R $30,000 (R $5,000 for each partner) was fully paid with a remaining balance of R $90,000 (R $15,000 for each partner) to be paid. With the completion of the above investments, each company now holds 16.66% of equity interest at Biomas. |
BASIS OF PREPARATION AND PRESEN
BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION | |
BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 2. BASIS OF PREPARATION AND PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION The Company’s unaudited condensed consolidated interim financial information, of the six-month period ended June 30, 2023, are prepared in compliance with the international standard IAS 34 Interim Financial Reporting issued by the International Accounting Standards Board (“IASB”) and disclose all the applicable significant information related to the financial information, which is consistent with the information used by Management in the performance of its duties. The Company’s unaudited condensed consolidated interim financial information are expressed in thousands of Brazilian Reais (“R$”), as well as the amounts of other currencies, when applicable, were also expressed in thousands, unless otherwise stated. The preparation of unaudited condensed consolidated interim financial information requires Management to make judgments, use estimates and adopt policies in the process of applying accounting practices that affect the disclosed amounts of revenues, expenses, assets and liabilities, including the disclosure of contingent liabilities assumed. However, the uncertainty inherent to these judgements, assumptions and estimates could result in material adjustments to the carrying amount of certain assets and liabilities in future periods. The Company reviews its judgments, estimates and assumptions continually as disclosed in the annual financial statements for the year ended December 31, 2022 (Note 3.2.34). There were no changes in these judgments, estimates and assumptions compared to disclosed on December 31, 2022. The unaudited condensed consolidated interim financial information prepared on historical cost basis, except for the following material items recognized: (i) Derivative and non-derivative financial instruments measured at fair value; (ii) Share-based payments and employee benefits measured at fair value; and (iii) Biological assets measured at fair value; The unaudited condensed consolidated interim financial information was prepared under the going concern assumption. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. The unaudited condensed consolidated interim financial information was prepared based on the information of Suzano and its subsidiaries on the same base date, except for subsidiary MMC Brasil and associates Ensyn and Spinnova, as well as in accordance with consistent accounting policies and practices. The unaudited condensed consolidated interim financial information should be read in conjunction with the annual financial statements for the year ended December 31, 2022, considering that its purpose is to provide an update on the activities, events and significant circumstances in relation to those disclosed in the consolidated financial statements. Therefore, unaudited condensed consolidated interim financial information focus on new activities, events and circumstances and do not duplicate the information previously disclosed, except when Management judges that the maintenance of the information is relevant. The accounting policies have been consistently applied to all consolidated companies. There were no changes on such policies and estimates calculation methodologies, except for the application of the new accounting policies as of January 1, 2023 and whose estimated impact was disclosed in the annual financial statements of December 31, 2022, as disclosed in the Note 3.1. 3.1. The new standards and interpretations issued, until the issuance of the Company’s unaudited condensed consolidated interim financial information, are described below. 3.1.1. 3.1.1.1. Presentation of the financial statements – IAS 1 – Classification of liabilities as current and non-current (applicable for annual periods beginning on/or after January 1, 2023, with early adoption permitted) The amendments to IAS 1 affect only the presentation of liabilities as current or non-current in the balance sheet, and not the amount or the timing of the recognition of any asset, liability, income or expense, or the information disclosed about these items. The amendments clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by expectations about whether an entity will exercise its right to postpone the settlement of the liability, explain that the rights exist if restrictive clauses are complied with at the balance sheet date, and introduce the definition of ‘settlement’ to clarify that it refers to a transfer to a counterparty of an amount in cash, equity instruments, other assets or services. The Company assessed the content of this pronouncement and did not identify any impacts. 3.1.1.2. Amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements – Disclosure of Accounting Policies (applicable for annual periods beginning on/or after January 1, 2023, with early adoption permitted) The amendments change the requirements in IAS 1 with regard to the disclosure of accounting policies. The amendments replace all instances of the term ‘significant accounting policies’ with ‘material accounting policy information’. Accounting policy information is material if, considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence the decisions that the primary users of the financial statements make on the basis of those financial statements. The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial, and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The Company assessed the content of this pronouncement and did not identify any impacts. 3.1.1.3. Amendments to IAS 8 Definition of Accounting Estimates (applicable for annual periods beginning on/or after January 1, 2023) The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The definition of a change in accounting estimates was deleted. However, the Board retained the concept of changes in accounting estimates in the Standard through the following clarifications: (i) A change in accounting estimates that results from new information or new developments does not constitute the correction of an error (ii) The effects of a change in an input or a measurement technique used to develop an accounting estimate represent changes in accounting estimates if they do not result from the correction of prior period errors The Company assessed the content of this pronouncement and did not identify any impacts. 3.1.1.4. Amendments to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction (applicable for annual periods beginning on/or after January 1, 2023) The amendments introduce a further exception to the initial recognition exemption. Under the amendments, an entity may not apply the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences. Depending on the applicable tax law, equal taxable and deductible temporary differences may arise from the initial recognition of an asset and liability in a transaction that is not a business combination and affects neither the accounting nor the taxable profit. For example, this may arise upon the recognition of a lease liability and the corresponding right-of-use asset, applying IFRS 16 at the commencement date of a lease. Following the amendments to IAS 12, an entity is required to recognise the related deferred tax asset and liability, with the recognition of any deferred tax asset being subject to the recoverability criteria in IAS 12. The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period, an entity recognises: (i) A deferred tax asset (to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilized) and a deferred tax liability for all deductible and taxable temporary differences associated with: ● Right-of-use assets and lease liabilities; and ● Decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset. (ii) The cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or another component of equity, as appropriate) at that date. The Company assessed the content of this pronouncement and did not identify any impacts. |
FINANCIAL INSTRUMENTS AND RISKS
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | 6 Months Ended |
Jun. 30, 2023 | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | 4. 4.1. 4.1.1. In the six-month period ended June 30, 2023, there were no significant changes in the financial risk management policies and procedures compared to those disclosed in the annual financial statements for the year ended December 31, 2022 (Note 4). The Company maintained its conservative approach and strong cash and marketable securities position, as well as its hedging policy. 4.1.2. All transactions with financial instruments are recognized for accounting purposes and classified in the following categories: June 30, December 31, Note 2023 2022 Assets Amortized cost Cash and cash equivalents 5 11,860,415 9,505,951 Trade accounts receivable 7 6,488,192 9,607,012 Dividends receivable 11 7,334 Other assets (1) 788,401 931,173 19,137,008 20,051,470 Fair value through other comprehensive income Investments - Celluforce 14.1 23,541 24,917 23,541 24,917 Fair value through profit or loss Derivative financial instruments 4.5.1 5,479,787 4,873,749 Marketable securities 6 8,354,870 7,965,742 13,834,657 12,839,491 32,995,206 32,915,878 Liabilities Amortized cost Trade accounts payable 17 6,347,954 6,206,570 Loans, financing and debentures 18.1 74,532,331 74,574,591 Lease liabilities 19.2 6,195,984 6,182,530 Liabilities for assets acquisitions and subsidiaries 23 280,864 2,062,322 Dividends payable 11 2,678 5,094 Other liabilities (1) 137,148 147,920 87,496,959 89,179,027 Fair value through profit or loss Derivative financial instruments 4.5.1 2,218,716 4,846,795 2,218,716 4,846,795 89,715,675 94,025,822 56,720,469 61,109,944 1) Does not include items not classified as financial instruments. 4.1.3. The estimated fair values of loans and financing are set forth below: Yield used to discount/ June 30, December 31, methodology 2023 2022 Quoted in the secondary market In foreign currency Bonds Secondary Market 37,361,853 40,309,832 Estimated present value In foreign currency Export credits (“Prepayment”) LIBOR 16,760,316 17,724,315 Assets Financing SOFR 217,540 138,644 IFC - International Finance Corporation SOFR 3,105,751 In local currency BNDES – TJLP DI 1 230,227 292,487 BNDES – TLP DI 1 1,971,409 1,393,010 BNDES – Fixed DI 1 10,219 21,656 BNDES – SELIC (“Special Settlement and Custody System”) DI 1 644,710 575,129 BNDES - Currency basket DI 1 4,122 10,866 CRA (“Agribusiness Receivables Certificate”) DI 1/IPCA 1,264,031 1,835,336 Debentures DI 1 6,663,101 5,643,440 NCE (“Export Credit Notes”) DI 1 1,381,393 1,384,396 NCR (“Rural Credit Notes”) DI 1 293,475 294,089 Export credits (“Prepayment”) DI 1 1,303,156 1,320,415 71,211,303 70,943,615 The book values of loans and financing are disclosed in Note 18. Management considers that, for its other financial liabilities measured at amortized cost, their book values approximate their fair values, and therefore the fair value information is not being presented. 4.2. The Company’s purpose is to maintain a strong cash and marketable securities position to meet its financial and operating commitments. The amount held in cash is intended to cover the expected outflows in the normal course of its operations, while the cash surplus is generally invested in highly liquid financial investments according to the Cash Management Policy. The cash position is monitored by the Company’s Management, by means of management reports and participation in performance meetings with determined frequencies. During the six-month period ended June 30, 2023, the variations in cash and marketable securities were as expected, and the cash generated from operations was mostly used for investments and debt service. All derivative financial instruments were traded over the counter and do not require deposit guarantee margins. The remaining contractual maturities of financial liabilities are presented as of the balance sheet date. The amounts as set forth below consist of undiscounted cash flow, and include interest payments and exchange rate variations, and therefore may not reconcile with the amounts disclosed in the balance sheet. June 30, 2023 Book Future Up to 1 1 - 2 More than value value year years 2 - 5 years 5 years Liabilities Trade accounts payable 6,347,954 6,347,954 6,347,954 Loans, financing and debentures 74,532,331 101,685,556 9,107,311 12,248,908 29,960,769 50,368,568 Lease liabilities 6,195,984 10,891,670 1,113,507 1,959,036 1,774,219 6,044,908 Liabilities for asset acquisitions and subsidiaries 280,864 313,645 98,899 94,575 89,293 30,878 Derivative financial instruments 2,218,716 3,125,242 527,889 827,564 1,740,146 29,643 Dividends payable 2,678 2,678 2,678 Other liabilities 137,148 137,148 52,585 84,563 89,715,675 122,503,893 17,250,823 15,214,646 33,564,427 56,473,997 December 31, 2022 Book Future Up to 1 1 - 2 More than value value year years 2 - 5 years 5 years Liabilities Trade accounts payable 6,206,570 6,206,570 6,206,570 Loans, financing and debentures 74,574,591 105,341,912 6,823,274 7,899,772 39,476,527 51,142,339 Lease liabilities 6,182,530 11,053,487 1,050,947 992,379 2,668,855 6,341,305 Liabilities for asset acquisitions and subsidiaries 2,062,322 2,203,302 1,986,633 99,331 57,421 59,917 Derivative financial instruments 4,846,795 6,515,262 728,070 1,341,108 4,299,970 146,114 Dividends payable 5,094 5,094 5,094 Other liabilities 147,920 147,920 61,500 86,420 94,025,822 131,473,547 16,862,088 10,419,010 46,502,773 57,689,675 4.3. In the six-month period ended June 30, 2023, there were no significant changes in the credit risk management policies compared to those disclosed in the annual financial statements for the year ended of December 31, 2022 (Note 4). 4.4. In the six-month period ended June 30, 2023, there were no significant changes in the market risk management policies and procedures compared to those disclosed in the annual financial statements for the year ended December 31, 2022 (Note 4). 4.4.1. As disclosed in the financial statements for the year ended December 31, 2022 (Note 4), the Company enters into U.S.Dollar selling transactions in the futures markets, including strategies involving options, to ensure attractive levels of operating margins for a portion of revenue. Such transactions are limited to a percentage of the net surplus foreign currency over a 24-months ’ time horizon and therefore, are matched to the availability of currency for sale in the short term. The Company’s Board of Directors approved the contracting of extraordinary hedge, in addition to the strategy mentioned above, for investments in the Cerrado Project, with a term of up to 36 months as of November 2021, in an amount of up to US $1,000,000 . On July 27, 2022, the Board of Directors approved the expansion of the program, increasing the maximum amount (notional) to US $1,500,000 , maintaining the previously established deadline. In order to provide transparency on the hedge program for the Cerrado Project, since December 31, 2021 the Company has started to prominently disclose the respective contracted operations. The assets and liabilities that are exposed to foreign currency, substantially in U.S. Dollars, are set forth below: June 30, December 31, 2023 2022 Assets Cash and cash equivalents 11,248,274 8,039,218 Marketable securities 4,826,627 4,510,652 Trade accounts receivable 4,845,044 7,612,768 Derivative financial instruments 4,202,786 3,393,785 25,122,731 23,556,423 Liabilities Trade accounts payable (2,028,936) (2,030,806) Loans and financing (60,176,982) (61,216,140) Liabilities for asset acquisitions and subsidiaries (186,058) (2,053,259) Derivative financial instruments (2,136,399) (4,698,323) (64,528,375) (69,998,528) (39,405,644) (46,442,105) 4.4.1.1. For market risk analysis, the Company uses scenarios to evaluate both its asset and liability positions in foreign currency, and the possible effects on its results. The probable scenario represents the amounts recognized, as they reflect the conversion into Brazilian Reais on the balance sheet date (R$ to U.S.$ = R$4.8192). This analysis assumes that all other variables, particularly interest rates, remain constant. The other scenarios considered the depreciation of the Brazilian Real against the U.S. Dollar at the rates of 25% and 50% before taxes. The following table set forth the potential impacts at their absolute amounts: June 30, 2023 Effect on profit or loss Probable Possible Remote (base value) (25%) (50%) Cash and cash equivalents 11,248,274 2,812,069 5,624,137 Marketable securities 4,826,627 1,206,657 2,413,314 Trade accounts receivable 4,845,044 1,211,261 2,422,522 Trade accounts payable (2,028,936) (507,234) (1,014,468) Loans and financing (60,176,982) (15,044,246) (30,088,491) Liabilities for asset acquisitions and subsidiaries (186,058) (46,515) (93,029) 4.4.1.2. The Company has sales operations in US$ in the futures markets, including strategies using options, to ensure attractive levels of operating margins for a portion of its revenue. These operations are limited to a percentage of the total exposure to US$ over a 24-month horizon, or to investments in the Cerrado Project, according to the extraordinary hedge described above, and are therefore pegged to the availability of ready-to-sell foreign exchange in the short term. In addition to the transaction described above, the Company also taken out derivative instruments linked to the US$ and subject to exchange fluctuations, seeking to adjust the debt’s currency indexation to the cash generation currency, as provided for in its financial policies. For the calculation of the mark-to-market (“MtM”) price, the exchange rate of the last business day of the period is used. These market movements caused a positive impact on the mark-to-market position entered into by the Company. This analysis below assumes that all other variables, particularly the interest rates, remain constant. The other scenarios considered the depreciation of the Brazilian Real against the US$ by 25% and 50%, before taxes, based on the base scenario on June 30, 2023. The following table set out the possible impacts assuming these scenarios: June 30, 2023 Effect on profit or loss Probable Possible Remote (base value) 25% 50% Dollar/Real Derivative financial instruments Derivative options 3,201,865 (3,777,232) (7,621,974) Derivative swaps (450,678) (1,728,220) (3,442,041) Derivative Non-Deliverable Forward (‘NDF’) Contracts 159,434 (286,048) (572,176) Embedded derivatives 187,618 (85,533) (171,067) NDF parity derivatives (1) 140,411 (47,180) (84,699) Commodity Derivatives 22,421 (5,607) (11,212) Dollar/Euro Derivative financial instruments NDF parity derivatives (1) 140,411 (562,869) (1,125,812) (1) 4.4.2. Fluctuations in interest rates could increase or reduce the costs of new loans and existing contracted operations. The Company is constantly looking for alternatives for the use of financial instruments in order to avoid negative impacts on its cash flow. Considering that on March 5, 2021, the Financial Conduct Authority (“FCA”) announced the discontinuation date of the 3-month LIBOR as June 30, 2023, the Company initiated negotiations of the terms for swapping the indexers of its debt contracts and related derivatives upon this announcement. As of June 30, 2023, the Company had R$15,566 related to loan and financing contracts, and R$15,151 related to derivative contracts, and it conducted the contract amendment process with the counterparties of each contract to ensure that the terms and market best practices were adopted at the time of the index transition starting from June 2023. On July 1, 2023, the contracts will be indexed to SOFR, which has been adopted as the new reference interest rate by the capital market. This negotiation will not have a substantial impact on the balances presented in the loan and financing and derivative instrument categories. The Company understands that it will not be necessary to change the risk management strategy due to the change of indexation of its financial contracts linked to LIBOR. 4.4.2.1. For its market risk analysis, the Company uses scenarios to evaluate the sensitivity of changes in operations impacted by the following rates: Interbank Deposit Rate (“CDI”), Long Term Interest Rate (“TJLP”), Special System for Settlement and Custody (“SELIC”) and the London Interbank Offered Rate (“LIBOR”), which could impact the results. The probable scenario represents the amounts already booked, as they reflect Management’s best estimates. This analysis assumes that all other variables, particularly exchange rates, will remain constant. The other scenarios considered a depreciation of 25% and 50% in market interest rates. The following table set forth the possible impacts assuming these scenarios in absolute amounts: June 30, 2023 Effect on profit or loss Possible Remote Probable (25%) (50%) CDI/SELIC Cash and cash equivalents 560,985 19,144 38,287 Marketable securities 3,528,243 120,401 240,803 Loans and financing 8,125,522 277,283 554,567 TJLP Loans and financing 277,763 5,055 10,111 LIBOR Loans and financing 15,645,428 216,902 433,803 SOFR Loans and financing 3,115,211 41,030 82,060 4.4.2.2. This analysis assumes that all other variables remain constant. The other scenarios considered a depreciation of 25% and 50% in market interest rates. The following table sets out the possible impacts of these assumed scenarios: June 30, 2023 Effect on profit or loss Probable Remote Probable 25% 50% CDI Derivative financial instruments Liabilities Derivative options 3,201,865 (388,599) (747,669) Derivative swaps (450,678) (5,108) (11,749) LIBOR Derivative financial instruments Liabilities Derivative swaps (450,678) 260,364 520,442 4.4.2.3. For the measurement of the probable scenario, the United States Consumer Price Index (“US-CPI”) was considered on June 30, 2023. The probable scenario was extrapolated considering a depreciation of 25% and 50% in the US-CPI to define the possible and remote scenarios, respectively. The following table sets out the possible impacts, assuming these scenarios in absolute amounts: June 30, 2023 Effect on profit or loss Probable Possible Remote (base value) (25%) (50%) Embedded derivative in a commitment to purchase standing wood, originating from a forest partnership agreement 187,618 (31,171) (64,295) 4.4.3. The Company is exposed to commodity prices, mainly in the selling price of pulp in the international market. The dynamics of rising and falling production capacities in the global market and macroeconomic conditions may impact the Company´s operating results. Through a specialized team, the Company monitors hardwood pulp prices and analyses future trends, adjusting the forecasts aimed at assisting with preventive measures to calculate the different scenarios. There is no sufficiently liquid financial market to mitigate the risk of a material portion of the Company’s operations. Hardwood pulp price protection instruments available on the market have low liquidity and low volume, and high levels of distortion in price formation. The Company is also exposed to international oil prices, reflected in logistical costs for selling in the export market, and indirectly in the costs of other supply, logistics and service contracts. In such cases, the Company evaluates whether to contract derivative financial instruments to mitigate the risk of price variations in its results. 4.5. The Company determines the fair value of derivative contracts, which differ from the amounts realized in the event of early settlement due to bank spreads and market factors at the time of quotation. The amounts presented by the Company are based on an estimate using market factors and use data provided by third parties, measured internally and compared to calculations performed by external consultants and by counterparties. Details of derivative financial instruments and their respective calculation methodologies are disclosed in the annual financial statements for the year ended December 31, 2022 (Note 4). 4.5.1. The positions of outstanding derivatives are set forth below: Notional value, net in U.S.$ Fair value June 30, December 31, June 30, December 31, 2023 2022 2023 2022 Instruments as part of protection strategy Operational hedges ZCC 4,815,050 6,866,800 3,201,865 1,596,089 NDF (R$ x US$) 243,100 248,100 159,434 (2,474) NDF (€ x US$) 399,328 544,702 140,411 161,055 Debt hedges Swap LIBOR to Fixed (US$) 3,143,877 3,200,179 927,104 1,052,546 Swap IPCA to CDI (notional in Brazilian Reais) 2,130,618 1,741,787 245,159 278,945 Swap IPCA to Fixed (US$) 121,003 (29,910) Swap CDI x Fixed (US$) 1,265,004 1,863,534 (1,262,085) (2,566,110) Pre-fixed Swap to US$ (US$) 350,000 350,000 (360,856) (503,605) Commodity Hedge Swap US-CPI (US$) (1) 130,810 124,960 187,618 40,418 Swap VLSFO/Brent 128,307 22,421 3,261,071 26,954 Current assets 3,747,881 3,048,493 Non-current assets 1,731,906 1,825,256 Current liabilities (483,512) (667,681) Non-current liabilities (1,735,204) (4,179,114) 3,261,071 26,954 (1) The embedded derivative refers to a swap contract for the sale of price variations in United States Dollars and US-CPI within the term of a forest partnership with a standing wood supply contract. The current contracts and the respective protected risks are set forth below: (i) Swap CDI x Fixed US$: positions in conventional swaps exchanging the variation of the Interbank Deposit rate (“DI”) for a fixed rate in United States Dollars (“US$”). The objective is to change the debt indexed in Brazilian Reais to US$, in compliance with the Company’s natural exposure to US$ receivables. (ii) Swap IPCA x CDI (notional in Brazilian Reais): positions in conventional swaps exchanging the variation of the Amplified Consumer Price Index (“IPCA”) for the DI rate. The objective is to change the debt indexed in reais, in compliance with the Company’s cash position in Brazilian Reais, which is also indexed to DI. (iii) Swap IPCA x Fixed US$: positions in conventional swaps exchanging the variations of the IPCA for a fixed rate in US$. The objective is to change the debt indexed in Brazilian Reais to US$, in compliance with the Company’s natural exposure to US$ receivables. (iv) Swap LIBOR x Fixed US$: positions in conventional swaps exchanging a post-fixed rate (LIBOR) for a fixed rate in US$. The objective is to protect the cash flow against changes in the US interest rate. (v) Pre-Fixed Swap R$ x Fixed US$: positions in conventional swaps of a fixed rate in Reais for a fixed rate in US$. The objective is to change the exposure of debts in Brazilian Reais to US$, in compliance with the Company’s natural exposure to US$ receivables. (vi) Zero-Cost Collar (“ZCC”): positions in an instrument that consists of the simultaneous combination of a purchase of put options and the sale of call options in US$, with the same principal amount and maturity, with the objective of protecting the cash flow of exports. Under this strategy, an interval is established where there is no deposit or receipt of financial margin at the option maturity. The objective is to protect the cash flow of exports against the depreciation of the Brazilian Real. (vii) Non-Deliverable Forward contracts (“NDF”): ”): short positions in US$ futures contracts with the objective of protecting the cash flow from exports against the depreciation of the Brazilian Real. (viii) Swap US-CPI: The embedded derivative refers to the swap contracts for selling price variations in US$ and the US-CPI in forest partnership with a standing wood supply contract. (ix) Non-Deliverable Forward contracts: EUR and US$: call positions at EUR/US$ parity to protect the Capex cash flow of the Cerrado project against the appreciation of the Euro. (x) Swap Very Low Sulphur Fuel Oil / Brent (“VLSFO”): Long positions in oil, aimed at hedging logistical costs related to maritime freight contracts against the increase in oil prices. The variation in the fair values of derivatives on June 30, 2023 compared to the fair values measured on December 31, 2022 are explained substantially by the appreciation of the Brazilian Real against the US Dollar and by settlements during the period. There were also impacts caused by the variations in the Pre, Foreign Exchange Coupon and LIBOR curves in the operations. It is important to highlight that the outstanding agreements on June 30, 2023 are over-the-counter market operations, without any type of collateral margin or forced early settlement clause due to variations from market marking. 4.5.2. June 30, December 31, 2023 2022 2023 2,413,838 2,380,812 2024 1,785,080 297,156 2025 (477,814) (1,225,193) 2026 onwards (460,033) (1,425,821) 3,261,071 26,954 4.5.3. The outstanding derivatives positions are set forth below: Notional value Fair value June 30, December 31, June 30, December 31, Currency 2023 2022 2023 2022 Debt hedges Assets Swap CDI to Fixed (US$) R$ 4,623,091 7,081,545 368,657 617,835 Swap Pre-Fixed to US$ R$ 1,317,226 1,317,226 45,329 Swap LIBOR to Fixed (US$) US$ 3,143,877 3,200,000 927,104 1,052,546 Swap IPCA to CDI IPCA 2,294,552 2,041,327 325,275 427,417 Swap IPCA to US$ IPCA 610,960 1,621,036 2,143,127 Liabilities Swap CDI to Fixed (US$) US$ 1,265,000 1,863,534 (1,630,742) (3,183,945) Swap Pre-Fixed to US$ US$ 350,000 350,000 (360,856) (548,934) Swap LIBOR to Fixed (US$) US$ 3,143,877 3,200,000 Swap IPCA to CDI R$ 2,130,618 1,741,787 (80,116) (148,472) Swap IPCA to US$ US$ 121,003 (29,910) (2,071,714) (3,911,261) (450,678) (1,768,134) Operational hedge Zero cost collar (US$ x R$) US$ 4,815,050 6,866,800 3,201,865 1,596,089 NDF (R$ x US$) US$ 243,100 248,100 159,434 (2,474) NDF (€ x US$) US$ 399,328 544,702 140,411 161,055 3,501,710 1,754,670 Commodity hedge Swap US-CPI (standing wood) (1) US$ 130,810 124,960 187,618 40,418 Swap VLSFO/Brent US$ 128,307 22,421 210,039 40,418 3,261,071 26,954 (1) The embedded derivative refers to the swap contracts for selling price variations in US$ and the US-CPI in forest partnership with a standing wood supply contract. 4.5.4. The settled derivatives positions are set forth below: June 30, December 31, 2023 2022 Operational hedge Zero cost collar (R$ x US$) 1,445,973 718,618 NDF (R$ x US$) 18,538 8,301 NDF (€ x US$) 50,679 7,113 1,515,190 734,032 Commodity hedge 8,853 Swap VLSFO/other 8,853 Debt hedge Swap CDI to Fixed (US$) (283,888) (261,570) Swap IPCA to CDI (Brazilian Reais) 158,092 (5,180) Swap IPCA to Fixed (US$) (3,945) 171 Swap Pre-Fixed to US$ 52,746 54,128 Swap LIBOR to Fixed (US$) 217,852 (239,356) 140,857 (451,807) 1,664,900 282,225 4.6. Financial instruments are measured at fair value, which considers the fair value as the price that would be received from selling an asset or paid to transfer a liability in an unforced transaction between market participants at the measurement date. For the six-month period ended June 30, 2023, there were no changes between the 3 (three) levels of hierarchy and no transfers between levels 1, 2 and 3. June 30, 2023 Level 2 Level 3 Total Assets At fair value through profit or loss Derivative financial instruments 5,479,787 5,479,787 Marketable securities 8,354,870 8,354,870 13,834,657 13,834,657 At fair value through other comprehensive income Other investments - CelluForce 23,541 23,541 23,541 23,541 Biological assets 16,914,120 16,914,120 16,914,120 16,914,120 Total assets 13,834,657 16,937,661 30,772,318 Liabilities At fair value through profit or loss Derivative financial instruments 2,218,716 2,218,716 2,218,716 2,218,716 Total liabilities 2,218,716 2,218,716 December 31, 2022 Level 2 Level 3 Total Assets At fair value through profit or loss Derivative financial instruments 4,873,749 4,873,749 Marketable securities 7,965,742 7,965,742 12,839,491 12,839,491 At fair value through other comprehensive income Other investments - CelluForce 24,917 24,917 24,917 24,917 Biological assets 14,632,186 14,632,186 14,632,186 14,632,186 Total assets 12,839,491 14,657,103 27,496,594 Liabilities At fair value through profit or loss Derivative financial instruments 4,846,795 4,846,795 4,846,795 4,846,795 Total liabilities 4,846,795 4,846,795 4.7. In the annual financial statements for the year ended December 31, 2022, the risks and opportunities information linked to climate change and the sustainability strategy were disclosed, which did not change significant during the six-month period ended June 30, 2023, except for the items presented in Note 4.7.1. 4.7.1. Opportunities linked to climate change and the sustainability strategy 4.7.1.1 Biomas As disclosed in Note 1.2.6, Suzano and five other global companies created Biomas with objective of restoring, conserving and preserving native forests in Brazil. The initiative aims to restore and protect, over a period of 20 years, native forest in some of Brazil´s most valuable ecosystems, such as the Amazon, Atlantic Forest and Cerrado biomes – The area is equivalent to the territory of Switzerland or the state of Rio de Janeiro, in Brazil. The initiative aims to promote a sustainable business model from a financial perspective, enabling each restoration, conservation, and preservation projects to be viable through the commercialization of carbon credits, as removals and avoided emissions, reducing tons of CO2e from the atmosphere. The first stage will involve the identification and prospecting of areas, promoting nurseries for the large-scale production of native trees, engaging local communities in Biomas activities, discussing the application of the project in public areas, partnering with carbon certification platforms and implementing pilot projects. 4.7.1.2 The Company has ongoing carbon credit projects certifications, including: ● Horizonte de Carbono Project, which aims to restore degraded areas through the reforestation of native and eucalyptus trees. On March 30, 2023, the certifier Verra completed the validation and verification of 1.9Mt CO2e of the Horizonte Project (VCS ID 3350), of which 10% will be allocated to the Verra reserve and 1.7Mt CO2e is eligible for the issuance of credits. The Company has not yet issued such credits. The carbon credits are registered by Verra, an accredited company that holds a global platform, which is also responsible for the custody of the credits. This company has developed the Verified Carbon Standard (VCS) program, currently regarded as the global reference standard, in the best understanding of the company. 4.7.1.3 In May 2023, Woodspin, located in Finland, inaugurated the first factory producing sustainable, recyclable and fully biodegradable textile fiber from responsibly grown wood, the result of the joint venture between Spinnova and Suzano. This new type of “green fabric” has the potential to replace less sustainable materials used in many products. This unit will be used for market development and technology improvement. For the construction and operation of textile fiber projects, Woodspin uses Suzano’s microfibrillated cellulose (MFC) as raw material. 4.8. The main objective is to strengthen the Company’s capital structure, aiming to maintain an appropriate level of financial leverage while mitigating risks that could affect the availability of capital for business development. The Company continuously monitors significant indicators, such as consolidated financial leverage, which is the ratio of total net debt to adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“Adjusted EBITDA”). |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 6 Months Ended |
Jun. 30, 2023 | |
CASH AND CASH EQUIVALENTS | |
CASH AND CASH EQUIVALENTS | 5. Average yield June 30, December 31, p.a. % 2023 2022 Cash and banks (1) 5.34 10,327,055 8,064,193 Cash equivalents Local currency Fixed-term deposits (compromised) 97.30 of CDI 560,985 1,441,758 Foreign currency Fixed-term deposits (2) 6.01 972,375 11,860,415 9,505,951 (1) Refers mainly to investments in foreign currency under the Sweep Account modality, which is a remunerated account the balance of which is invested and made available automatically each day. (2) Refers to Time Deposit applications, with maturity up to 90 days, which is a remunerated bank deposit with a specific maturity period and is subject to an insignificant risk of changes in value. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2023 | |
MARKETABLE SECURITIES | |
MARKETABLE SECURITIES | 6. Average yield June 30, December 31, p.a. % 2023 2022 In local currency Private funds 112.40 of CDI 1,034,750 1,208,975 Private Securities (“CDBs”) 100.51 of CDI 2,052,353 1,827,012 CDBs - Escrow Account (1) 100.24 of CDI 441,140 419,103 3,528,243 3,455,090 Foreign currency Time deposits (2) 6.39 4,563,527 4,386,589 Other 263,100 124,063 4,826,627 4,510,652 8,354,870 7,965,742 Current 7,913,730 7,546,639 Non-Current 441,140 419,103 (1) Includes escrow accounts, which will be released only after obtaining the applicable governmental approvals, and pending compliance by the Company with the conditions precedent in transactions involving the sale of rural properties. (2) Refers to Time Deposit investments, with maturities over 90 days, which are remunerated bank deposits with specific maturity periods. |
TRADE ACCOUNTS RECEIVABLE
TRADE ACCOUNTS RECEIVABLE | 6 Months Ended |
Jun. 30, 2023 | |
TRADE ACCOUNTS RECEIVABLE | |
TRADE ACCOUNTS RECEIVABLE | 7. 7.1. June 30, December 31, 2023 2022 Domestic customers Third parties 1,599,377 1,915,745 Related parties (Note 11) (1) 73,564 99,608 Foreign customers Third parties 4,845,044 7,612,768 (-) Expected credit losses (29,793) (21,109) 6,488,192 9,607,012 (1) The Company carries out factoring transactions for certain customer receivables where transfers the control and all risks and rewards related to these receivables to the counterparty, so these receivables are derecognized from accounts receivable in the balance sheet. This transaction refers to an additional cash generation opportunity and is therefore classified as a financial asset measured at amortized cost. The impact of these factoring transactions on the accounts receivable as of June 30, 2023, was R $4,227,031 (R$ 6,889,492 as of December 31, 2022). 7.2. Breakdown of trade accounts receivable by maturity June 30, December 31, 2023 2022 Current 5,432,105 8,652,376 Overdue Up to 30 days 855,757 777,150 From 31 to 60 days 44,915 74,253 From 61 to 90 days 50,212 54,784 From 91 to 120 days 9,921 20,975 From 121 to 180 days 50,728 18,945 From 181 days 44,554 8,529 6,488,192 9,607,012 7.3. June 30, December 31, 2023 2022 Opening balance (21,109) (34,763) Additions (10,464) (5,228) Reversals 177 3,576 Write-offs 1,536 12,355 Exchange rate variations 67 2,951 Closing balance (29,793) (21,109) The Company maintains guarantees for overdue receivables as part of its commercial operations, through credit insurance policies, letters of credit and other guarantees. These guarantees avoid the need to recognize expected credit losses, in accordance with the Company’s credit policy. 7.4. Main customers The Company has 1 (one) customer responsible for 12.37% of the net sales of pulp segment on June 30, 2023 (10.67% on December 31, 2022) and no main customer responsible for more than 10% of the net sales of paper segment on June 30, 2023 and December 31, 2022. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2023 | |
INVENTORIES | |
INVENTORIES | 8. June 30, December 31, 2023 2022 Finished goods Pulp Domestic (Brazil) 501,037 616,415 Foreign 1,711,100 1,426,064 Paper Domestic (Brazil) 535,026 358,973 Foreign 245,267 192,671 Work in process 119,644 93,964 Raw materials Wood 1,586,058 1,480,616 Operating supplies and packaging 745,413 716,089 Spare parts and other 978,951 843,469 6,422,496 5,728,261 Inventories are disclosed net of estimated losses. 8.1. June 30, December 31, 2023 2022 Opening balance (105,989) (91,258) Additions (23,859) (89,552) Reversals 24,713 33,492 Write-offs 17,893 41,329 Closing balance (87,242) (105,989) On June 30, 2023 and December 31, 2022, there were no inventory items pledged as collateral. |
RECOVERABLE TAXES
RECOVERABLE TAXES | 6 Months Ended |
Jun. 30, 2023 | |
RECOVERABLE TAXES | |
RECOVERABLE TAXES | 9. June 30, December 31, 2023 2022 IRPJ/CSLL – prepayments and withheld taxes 328,747 179,812 PIS/COFINS – on acquisitions of property, plant and equipment (1) 87,955 89,334 PIS/COFINS – operations 615,322 523,970 PIS/COFINS – exclusions from ICMS (2) 458,319 570,945 ICMS – on acquisitions of property, plant and equipment (3) 358,999 167,286 ICMS – operations (4) 1,446,388 1,423,375 Reintegra program (5) 76,549 65,971 Other taxes and contributions 39,690 39,057 Provision for loss on ICMS credits (6) (1,306,768) (1,103,807) 2,105,201 1,955,943 Current 747,847 549,580 Non-current 1,357,354 1,406,363 1) Social Integration Program (“PIS”) and Social Security Funding Contribution (“COFINS”): Credits whose realization is based on the years of depreciation of the corresponding asset. 2) The Company and its subsidiaries filed lawsuits over the years seeking the exclusion of ICMS from the PIS and COFINS contribution tax basis, in relation to certain transactions during various periods from March 1992, details on the initial recognition were disclosed in the financial statements of December 31, 2021. 3) Tax on Sales and Services (“ICMS”): Credits from the acquisition of property, plant and equipment are recovered on a straight-line basis over a four-year period, from the acquisition date, in accordance with the relevant regulation, the ICMS Control on Property, Plant and Equipment (“CIAP”). 4) ICMS credits accrued due to the volume of exports and credit generated from product import transactions: Credits are concentrated in the States of Espírito Santo, Maranhão, Mato Grosso do Sul e São Paulo, where the Company realizes the credits through the sale of credits to third parties, after approval from the State Ministry of Finance of each State. Credits are also being realized through the consumption of consumer goods (tissue) transactions in the domestic market. 5) Special Regime of Tax Refunds for Export Companies (“Reintegra”): Reintegra is a program that aims to refund the residual costs of taxes paid throughout the export chain to taxpayers, to make them more competitive in foreign markets. 6) Related to provisions for ICMS credit balances that are not probable to be recovered. 9.1. Roll-forward of provision for loss ICMS June 30, December 31, 2023 2022 Opening balance (1,103,807) (1,064,268) Addition (1) (217,782) (221,903) Write-off 18,464 Reversal 14,821 163,900 Closing balance (1,306,768) (1,103,807) 1) Refers, substantially, to the accumulated ICMS credits of the state of Mato Grosso do Sul, arising from the construction operations of the Cerrado Project, and of the state of Espirito Santo, of the accumulated credits due to the volume of exports. |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 6 Months Ended |
Jun. 30, 2023 | |
ADVANCES TO SUPPLIERS | |
ADVANCES TO SUPPLIERS | 10. June 30, December 31, 2023 2022 Forestry development program and partnerships 1,981,199 1,592,132 Advance to suppliers - others 103,181 108,146 2,084,380 1,700,278 Current 103,181 108,146 Non-current 1,981,199 1,592,132 In the annual financial statements for the year ended December 31, 2022, the characteristics of the advances were disclosed, which did not change during the six-month period ended June 30, 2023. |
RELATED PARTIES
RELATED PARTIES | 6 Months Ended |
Jun. 30, 2023 | |
RELATED PARTIES | |
RELATED PARTIES | 11. The Company’s commercial and financial transactions with the controlling shareholder and Companies owned by the controlling shareholder Suzano Holding S.A. (“Suzano Group”) were carried out at specific prices and conditions, as well as the corporate governance practices adopted by the Company, and those recommended and/or required by the applicable legislation. The transactions refers mainly to: Assets: (i) accounts receivable from the sale of pulp, paper, tissue and other products; (ii) dividends receivable; (iii) reimbursement for expenses; and (iv) social services; Liabilities: (i) loan agreements;(ii) reimbursement for expenses; (iii) social services; (iv) real estate consulting; and (v) dividends payable. Amounts in the statements of income: (i) sale of pulp, paper, tissue and other products; (ii) loan charges and exchange variation; (iii) social services and (viii) real estate consulting. For the six-month period ended June 30, 2023, there were no material changes in the terms of the agreements, deals and transactions entered into, nor were there any new contracts, agreements or transactions of any different nature entered into between the Company and its related parties. 11.1. Balances recognized in assets and liabilities and amounts of transactions during the period Assets Liabilities Sales (purchases), net June 30, December 31, June 30, December 31, June 30, June 30, 2023 2022 2023 2022 2023 2022 Transactions with controlling shareholders Suzano Holding 5 22 30 5 22 30 Transactions with companies of the Suzano Group and other related parties Management (expect compensation - Note 11.2) (4) (5) (810) (15) Bexma Participações Ltda 1 4 4 Bizma Investimentos Ltda 1 3 4 Civelec Participações Ltda 4,575 4,825 Fundação Arymax 1 1 Ibema Companhia Brasileira de Papel (1) 73,564 106,940 (12,033) (3,705) 108,105 90,916 Instituto Ecofuturo - Futuro para o Desenvolvimento Sustentável 3 (1,124) (66) (3,959) (2,267) IPLF Holding S.A. 23 2 2 Nemonorte Imóveis e Participações Ltda (88) (105) 78,139 106,968 (13,161) (3,776) 108,083 88,540 78,139 106,973 (13,161) (3,776) 108,105 88,570 Assets Trade accounts receivable (Note 7) 73,564 99,608 Dividends receivable 7,334 Other assets 4,575 31 Liabilities Trade accounts payable (Note 17) (13,161) (3,776) 78,139 106,973 (13,161) (3,776) 1) Refers mainly to the sale of pulp. 11.2 Expenses related to the compensation of key management personnel, which include the Board of Directors, Fiscal Council and Board of Statutory Executive Officers, recognized in the statement of income for the period, are set out below: June 30, June 30, 2023 2022 Short-term benefits Salary or compensation 23,822 24,741 Direct and indirect benefits 1,194 464 Bonus 4,724 3,516 29,740 28,721 Long-term benefits Share-based compensation plan 12,407 25,726 12,407 25,726 42,147 54,447 Short-term benefits include fixed compensation (salaries and fees, vacation pay, mandatory bonus and “13 th Long-term benefits include the stock option plan and phantom shares for executives and key members of Management, in accordance with the |
INCOME AND SOCIAL CONTRIBUTION
INCOME AND SOCIAL CONTRIBUTION TAXES | 6 Months Ended |
Jun. 30, 2023 | |
INCOME AND SOCIAL CONTRIBUTION TAXES | |
INCOME AND SOCIAL CONTRIBUTION TAXES | 12. 12.1. Deferred taxes The Company calculates income tax and social contribution taxes, current and deferred, based on the following rates: (i) 15% plus an additional 10% on taxable income in excess of R$240 for IRPJ; and (ii) 9% for CSLL, on the net income. Balances are recognized in the Company’s income on an accruals basis. Subsidiaries domiciled in Brazil have their taxes calculated and provisioned in accordance with the current legislation and their specific tax regime, including, in some cases, the presumed profit method. Subsidiaries domiciled abroad are subject to taxation in their respective jurisdictions, according to local regulations. Deferred income and social contribution taxes are recognized at the net amounts in non-current assets or liabilities. In Brazil, Law nº. 12,973/14 revoked article 74 of Provisional Measure nº. 2,158/01 and determines that the parcel of the adjustment of the value of the investment in subsidiaries, direct and indirect, domiciled abroad, equivalent to the profit earned by them before income tax, except for exchange rate variation, must be added in the determination of taxable income and the social contribution calculation basis of the controlling entity domiciled in Brazil, at each year ended. The Company management believes in the validity of the provisions of international treaties entered by Brazil to avoid double taxation. In order to ensure its right to non-double taxation, the Company filed a lawsuit in April 2019, which aims to exempt the double taxation in Brazil, of profits earned by its subsidiary located in Austria, according to Law No. 12,973/14. Due to the preliminary injunction granted in favor of the Company in the aforementioned lawsuit, the Company decided not to add the profit from Suzano International Trading GmbH, located in Austria, when determining its taxable income and social contribution basis of the net profit of the Company for the six-month period ended June 30, 2023. There is no provision for tax related to the non-double taxation profits of such subsidiary in 2022. 12.1.1. Deferred income and social contribution taxes June 30, December 31, 2023 2022 Tax loss 1,203,724 1,207,096 Negative tax basis of social contribution 453,538 445,250 Assets - temporary differences Provision for judicial liabilities 292,460 268,596 Operating provisions and other losses 1,030,664 999,028 Exchange rate variations 2,369,677 4,297,503 Amortization of fair value adjustments arising from business combinations 665,983 680,142 Unrealized profit on inventories 164,996 363,052 Leases 328,682 364,838 6,509,724 8,625,505 Liabilities - temporary differences Goodwill - tax benefit on unamortized goodwill 1,161,410 1,023,103 Property, plant and equipment - deemed cost 1,174,570 1,217,349 Depreciation accelerated for tax-incentive reason (1) 834,389 869,997 Capitalized loan costs 404,955 210,834 Fair value of biological assets 1,027,008 703,274 Deferred taxes, net of fair value adjustments 384,016 398,950 Tax credits - gains from tax lawsuit (exclusion of ICMS from the PIS and COFINS basis) 155,828 194,121 Derivatives gains (“MtM”) 1,108,764 9,164 Provision of deferred taxes on results of subsidiaries abroad 98,984 Other temporary differences 23,539 13,416 6,373,463 4,640,208 Non-current assets 147,638 3,986,415 Non-current liabilities 11,377 1,118 1) 12.1.2. Breakdown of accumulated tax losses and social contribution tax losses carried forward June 30, December 31, 2023 2022 Tax loss carried forward 4,814,896 4,828,384 Negative tax basis of social contribution carried forward 5,039,311 4,947,222 12.1.3. Roll-forward of deferred tax assets June 30, December 31, 2023 2022 Opening balance 3,985,297 8,729,929 Tax loss (3,372) 50,220 Negative tax basis of social contribution 8,288 34,176 Provision for judicial liabilities 23,864 19,251 Operating provisions and other losses 31,636 33,898 Exchange rate variation (1,927,826) (2,257,699) Derivative gains (“MtM”) (1,099,600) (2,202,857) Amortization of fair value adjustments arising from business combinations 775 8,970 Unrealized profit on inventories (198,056) 64,164 Leases (36,156) (8,534) Goodwill - tax benefit on unamortized goodwill (138,307) (276,614) Property, plant and equipment - deemed cost 42,779 99,510 Depreciation accelerated for tax-incentive reason 35,608 74,952 Capitalized loan costs (194,121) (111,435) Fair value of biological assets (323,734) (272,308) Deferred taxes on the results of subsidiaries abroad (98,984) Credits on exclusion of ICMS from the PIS/COFINS tax base 38,293 3,906 Other temporary differences (10,123) (4,232) Closing balance 136,261 3,985,297 12.2. June 30, June 30, 2023 2022 Net income (loss) before taxes 14,380,751 13,937,137 Income tax and social contribution benefit (expense) at the statutory nominal rate of 34% (4,889,455) (4,738,627) Tax effect on permanent differences Taxation (difference) on profits of subsidiaries in Brazil and abroad (1) 815,768 1,473,037 Equity method 143 3,164 Thin capitalization (2) (27,114) (198,725) Credit related to the Reintegra Program 3,694 3,677 Director bonuses (3,481) (11,176) Tax incentives 41,769 22,464 Donations/Fines – Other (1,659) (3,052) (4,060,335) (3,449,238) Income tax Current (193,265) (116,819) Deferred (2,830,430) (2,446,211) (3,023,695) (2,563,030) Social Contribution Current (17,738) (5,818) Deferred (1,018,902) (880,390) (1,036,640) (886,208) Income and social contribution benefits (expenses) for the period (4,060,335) (3,449,238) Effective rate of income and social contribution tax expenses 28.23% 24.75% 1) The difference in the taxation of subsidiaries is substantially due to the differences between the nominal tax rates in Brazil and those of subsidiaries located abroad. 2) The Brazilian thin capitalization rules establish that interest paid or credited by a Brazilian entity to a related party abroad may only be deducted for income tax and social contribution purposes if the interest expense is viewed as necessary for the activities of the local entity, and when certain limits and requirements are met. On June 30, 2023 and June 30, 2022, the Company did not meet all of the limits and requirements, and therefore the expense is not deductible for the period. 12.3. Tax incentives The Company benefits from a tax incentive for partial reduction of the income tax obtained from operations carried out in areas under the jurisdiction of the Northeast Development Superintendence (“SUDENE”) and the Superintendence of Amazon Development (“SUDAM”). The IRPJ reduction incentive is calculated based on the activity profits (exploitation profits) and considers the allocation of the operating profit based on the incentive production levels for each product. Area/Regions Company Maturity Northeast Development Superintendence (“SUDENE”) Mucuri (BA) - Line 1 Suzano 2024 Mucuri (BA) - Line 2 Suzano 2027 Eunápolis (BA) Veracel 2025 Imperatriz (MA) Suzano 2024 Aracruz (ES) Portocel 2030 Aracruz (ES) Suzano 2031 Superintendence of Amazon Development (“SUDAM”) Belém (PA) Suzano 2025 |
BIOLOGICAL ASSETS
BIOLOGICAL ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
BIOLOGICAL ASSETS. | |
BIOLOGICAL ASSETS | 13. The roll-forward of biological assets is as set forth below: June 30, December 31, 2023 2022 Opening balance 14,632,186 12,248,732 Additions 2,899,032 4,957,380 Depletions (1,805,371) (3,665,057) Gain on fair value adjustments 1,256,315 1,199,759 Disposals (36,278) (82,331) Other write-offs (31,764) (26,297) Closing balance 16,914,120 14,632,186 The calculation of fair value of the biological assets falls under Level 3 in the hierarchy set forth in IFRS 13 — Measurement of Fair Value, due to the complexity and structure of the calculation. The assumptions such as the average annual growth (“IMA”), discount rate, and average gross selling price of eucalyptus, stand out as being the most sensitive, where increases or reductions in these assumptions could generate significant gains or losses in the measurement of fair value. The assumptions used in the measurement of the fair value of biological assets were as follow: i) Average cycle of forest formation between 6 and 7 years ; ii) Effective area of forest from the 3 rd year of planting; iii) The IMA consists of the estimated volume of production of wood with bark in m 3 per hectare, ascertained based on the genetic material used in each region, silvicultural practices and forest management, production potential, climate factors and soil conditions; iv) The estimated average standard cost per hectare includes silvicultural and forest management expenses, applied to each year of formation of the biological cycle of the forests, plus the costs of land lease agreements and the opportunity cost of owning land; v) The average gross selling prices of eucalyptus were based on specialized research on transactions carried out by the Company with independent third parties; and vi) The discount rate used in cash flows is measured based on the capital structure and other economic assumptions of an independent market participant in the sale of standing wood (forests). The table below discloses the measurement of the premises adopted: June 30, December 31, 2023 2022 Planted useful area (hectare) 1,105,168 1,097,081 Mature assets 181,573 134,752 Immature assets 923,595 962,329 Average annual growth (IMA) - m 3 /hectare /year 37.61 37.07 Average gross sale price of eucalyptus - R$/m 3 97.34 90.16 Discount rate - % (post-tax) 8.8% 9.1% The pricing model considers the net cash flows, after the deduction of taxes on profit at the applicable rates. The fair value adjustment justified by the combined variations of the indicators mentioned above resulted in a positive variation of R $1,256,315 recognized in other operating income (expenses), net (Note 30). June 30, December 31, 2023 2022 Physical changes 432,212 (37,088) Price 824,103 1,236,847 1,256,315 1,199,759 The Company manages the financial and climate risks related to its agricultural activities in a preventive manner. To reduce the risks arising from edaphoclimatic factors, the weather is monitored through meteorological stations and, in the event of pests and diseases, our Department of Forestry Research and Development, an area specialized in physiological and phytosanitary aspects, has procedures to diagnose and act rapidly against possible occurrences and losses. The Company has no biological assets pledged for the six-month period ended June 30, 2023 and the year ended December 31, 2022. |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2023 | |
INVESTMENTS | |
INVESTMENTS | 14. 14.1. Investments breakdown June 30, December 31, 2023 2022 Investments in associates and joint ventures 383,500 354,200 Goodwill 233,228 233,399 Other investments evaluated at fair value through other comprehensive income - Celluforce 23,541 24,917 640,269 612,516 14.2. Investments in associates and joint ventures Information of joint ventures as at Company Participation June 30, In the income(expenses) for 2023 Carrying amount the period Income (expenses) Participation of the equity June 30, December 31, June 30, June 30, Equity period (%) 2023 2022 2023 2022 Associate Ensyn Corporation 2,684 (16,508) 26.07% 700 1,250 (4,304) 5,597 Spinnova Plc (1) 526,204 19.03% 100,137 113,079 (6,706) (4,939) 100,837 114,329 (11,010) 658 Joint ventures Domestic (Brazil) Biomas 28,962 (1,051) 16.66% 4,825 (175) Ibema Companhia Brasileira de Papel 366,704 76,069 49.90% 182,985 158,996 21,524 8,764 Foreign F&E Technologies LLC 9,928 50.00% 4,964 5,230 Woodspin Oy 179,778 (19,376) 50.00% 89,889 75,645 (9,688) (1) 282,663 239,871 11,661 8,763 Other movements 23,541 24,917 (232) (114) 23,541 24,917 (232) (114) 407,041 379,117 419 9,307 1) The average share price quoted on the Nasdaq First North Growth Market (NFNGM) was EUR 4.91 (four euros and ninety-one cents) on June 30, 2023. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
PROPERTY, PLANT AND EQUIPMENT | 15. Machinery, equipment and Work in Land Buildings facilities progress Other (1) Total Average rate % 3.52 6.24 17.41 Accumulated cost 9,791,102 9,415,818 43,949,632 1,603,915 1,104,601 65,865,068 Accumulated depreciation (3,577,097) (23,344,836) (773,432) (27,695,365) Balance as of December 31, 2021 9,791,102 5,838,721 20,604,796 1,603,915 331,169 38,169,703 Additions 5,089 516 381,741 11,220,806 15,832 11,623,984 Additions of merged companies 3,829,344 3,829,344 Write-offs (69,773) (10,613) (58,435) (3,384) (142,205) Depreciation (310,429) (2,367,163) (124,464) (2,802,056) Transfers 930,646 246,782 1,057,714 (2,451,570) 194,292 (22,136) Accumulated cost 14,486,408 9,644,875 45,160,365 10,373,151 1,281,328 80,946,127 Accumulated depreciation (3,879,898) (25,541,712) (867,883) (30,289,493) Balance as of December 31, 2022 14,486,408 5,764,977 19,618,653 10,373,151 413,445 50,656,634 Additions (2) 11,504 233,146 6,159,347 4,567 6,408,564 Amounts from the acquisition of MMC Brasil (3) 4,572 110,965 451,969 8,306 13,353 589,165 Write-offs (23,121) (30,925) (31,743) (57,907) (143,696) Depreciation (152,674) (1,236,907) (65,881) (1,455,462) Transfers 255,036 158,860 1,051,866 (1,609,709) 117,050 (26,897) Accumulated cost 14,734,399 9,852,001 46,791,386 14,931,095 1,347,625 87,656,506 Accumulated depreciation (4,000,798) (26,704,402) (922,998) (31,628,198) Balance as of June 30, 2023 14,734,399 5,851,203 20,086,984 14,931,095 424,627 56,028,308 1) Includes vehicles, furniture and utensils and computer equipment. 2) The addition of work in progress refers, mainly to the Cerrado Project, of which R $649,116 is a non-cash effect in the period. 3) On June 1, 2023, the Company completed the acquisition of MMC Brasil Indústria e Comércio Ltda.(Note 1.2.3.) On June 30, 2023, the Company evaluated the business, market and climate impacts, and did not identify any event that indicated the need to perform an impairment test and to record any impairment provision for property, plant and equipment. 15.1. On June 30, 2023, property, plant and equipment items pledged as collateral for loan transactions and legal proceedings, consisting mainly of the units of Suzano and Três Lagoas totalling R$12,856,211 (R$12,773,662 in the same units as at December 31, 2022). 15.2. Capitalized expenses For the six-month period ended June 30, 2023, the Company capitalized loan costs in the amount of R$511,650 (R$359,407 as of December 31, 2022). The weighted average interest rate, adjusted by the equalization of the exchange rate effects, utilized to determine the capitalized amount was 11.78% p.a. (12.49% p.a. as of December 31, 2022). |
INTANGIBLE
INTANGIBLE | 6 Months Ended |
Jun. 30, 2023 | |
INTANGIBLE | |
INTANGIBLE | 16. 16.1. June 30, December 31, 2023 2022 Goodwill - Facepa 119,332 119,332 Goodwill - Fibria 7,897,051 7,897,051 Goodwill - MMC Brasil (1) 182,798 Other (2) 4,018 3,405 8,203,199 8,019,788 1) Refers to the goodwill of the MMC Brasil business combination, whose allocation of the purchase price is disclosed in note 1.2.3. 2) Refers to other intangible assets with indefinite useful lives such as servitude of passage and electricity. The goodwill is based on expected future profitability supported by valuation reports, after the purchase price allocation. Goodwill is allocated to cash-generating units as presented in Note 28.4. For the six-month period ended June 30, 2023, the Company did not identify any event that indicated the need to perform the impairment test and to record any impairment provision for intangible assets. 16.2. June 30, December 31, 2023 2022 Opening balance 7,173,183 8,014,740 Additions 197 90,499 Fair value adjustment MMC Brasil (1) 189,655 Write-offs (51) Amortization (489,650) (966,796) Transfers and others 35,563 34,791 Closing balance 6,908,948 7,173,183 Represented by Average rate % Non-competition agreements 5.00 4,971 5,128 Port concessions 4.30 547,242 554,832 Lease agreements 16.90 10,624 14,374 Supplier agreements 12.90 48,146 55,554 Port service contracts 4.20 564,501 579,289 Cultivars 14.30 50,980 61,176 Trademarks and patents (1) 9.05 199,024 10,935 Customer portfolio 9.10 5,336,369 5,746,860 Supplier agreements 17.60 16,142 21,427 Software 20.00 122,013 113,946 Other 5.75 8,936 9,662 6,908,948 7,173,183 Cost 12,229,915 12,004,503 Amortization (5,320,967) (4,831,320) Closing balance 6,908,948 7,173,183 1) |
TRADE ACCOUNTS PAYABLE
TRADE ACCOUNTS PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
TRADE ACCOUNTS PAYABLE | |
TRADE ACCOUNTS PAYABLE | 17. June 30, December 31, 2023 2022 In local currency Related party (Note 11.1) (1) 13,161 3,776 Third party (2)(3) 4,305,857 4,171,988 In foreign currency Third party (3) 2,028,936 2,030,806 6,347,954 6,206,570 1) The balance refers mainly to transactions with Ibema Companhia Brasileira de Papel. 2) Within the balance of suppliers, there are values under supplier finance arrangement that were subject to anticipation with financial institutions at the exclusive option of certain suppliers, without changing the originally defined purchase conditions (payment terms and negotiated prices). The balance related to such operations on June 30, 2023 was R $243,229 (R $416,643 at December 31, 2022). 3) Within the balance of suppliers, the following balances refer to the Cerrado Project, R $988,892 (R $625,645 on December 31, 2022) in local currency and R $1,656,702 (R $1,370,833 on December 31, 2022) in foreign currency. |
LOANS, FINANCING AND DEBENTURES
LOANS, FINANCING AND DEBENTURES | 6 Months Ended |
Jun. 30, 2023 | |
LOANS, FINANCING AND DEBENTURES | |
LOANS, FINANCING AND DEBENTURES | 18. 18.1. Breakdown by type Current Non-current Total Average annual interest rate - June 30, December 31, June 30, December 31, June 30, December 31, Type Interest rate % 2023 2022 2023 2022 2023 2022 In foreign currency BNDES UMBNDES 5.4 4,174 11,207 4,174 11,207 Bonds Fixed 5.0 832,242 907,059 39,928,218 43,218,286 40,760,460 44,125,345 Export credits (“export prepayments”) LIBOR/Fixed 6.2 1,719,005 156,156 14,597,783 16,779,064 16,316,788 16,935,220 Assets financing SOFR 3.6 44,320 26,755 177,526 113,217 221,846 139,972 IFC - International Finance Corporation SOFR 5.9 1,845 2,850,036 2,851,881 Others 10,647 5,980 10,647 5,980 2,612,233 1,107,157 57,553,563 60,110,567 60,165,796 61,217,724 In local currency BNDES TJLP 8.4 55,034 69,495 221,302 246,004 276,336 315,499 BNDES TLP 10.7 53,908 41,640 2,346,197 1,775,991 2,400,105 1,817,631 BNDES Fixed 4.5 8,563 18,666 2,004 4,011 10,567 22,677 BNDES SELIC 13.3 67,951 67,115 836,034 814,320 903,985 881,435 CRA (“Agribusiness Receivables Certificates”) CDI/IPCA 9.6 1,269,990 1,829,966 1,269,990 1,829,966 NCE (“Export credit notes”) CDI 11.0 78,548 76,463 1,378,261 1,277,616 1,456,809 1,354,079 NCR (“Rural producer certificates”) CDI 10.7 12,981 13,144 274,265 274,127 287,246 287,271 Export credits (“export prepayments”) Fixed 8.1 1,339,409 77,694 1,315,813 1,339,409 1,393,507 Debentures CDI 11.7 33,926 33,689 6,388,162 5,421,113 6,422,088 5,454,802 2,920,310 2,227,872 11,446,225 11,128,995 14,366,535 13,356,867 5,532,543 3,335,029 68,999,788 71,239,562 74,532,331 74,574,591 Interest on financing 1,141,837 1,238,623 1,141,837 1,238,623 Non-current funding 4,390,706 2,096,406 68,999,788 71,239,562 73,390,494 73,335,968 5,532,543 3,335,029 68,999,788 71,239,562 74,532,331 74,574,591 18.2. Breakdown by maturity – non - current 2029 2024 2025 2026 2027 2028 onwards Total In foreign currency Bonds 5,970 1,640,973 2,495,454 3,350,524 2,406,200 30,029,097 39,928,218 Export credits (“export prepayments”) 894,202 5,254,429 4,656,085 3,793,067 14,597,783 Assets financing 22,774 46,987 48,860 48,123 10,782 177,526 IFC - International Finance Corporation 187,413 883,520 1,779,103 2,850,036 922,946 6,942,389 7,200,399 7,379,127 3,300,502 31,808,200 57,553,563 In local currency BNDES – TJLP 22,052 98,809 85,571 7,090 3,590 4,190 221,302 BNDES – TLP 21,408 60,963 80,573 141,272 138,439 1,903,542 2,346,197 BNDES – Fixed 2,004 2,004 BNDES – SELIC 28,720 217,090 217,135 28,057 28,103 316,929 836,034 NCE (“Export credit notes”) 640,800 637,460 25,000 25,000 50,001 1,378,261 NCR (“Rural producer certificates”) 137,500 136,765 274,265 Debentures 2,340,550 2,333,776 748,306 965,530 6,388,162 74,184 3,495,712 3,491,280 201,419 943,438 3,240,192 11,446,225 997,130 10,438,101 10,691,679 7,580,546 4,243,940 35,048,392 68,999,788 18.3. Roll-forward of loans, financing and debentures June 30, December 31, 2023 2022 Opening balance 74,574,591 79,628,629 Fundraising, net of issuance costs 5,276,816 1,335,715 Interest accrued 2,309,587 4,007,737 Monetary and exchange rate variations, net (4,543,048) (3,949,020) Settlement of principal (765,533) (2,517,934) Settlement of interest (2,352,484) (4,019,072) Amortization of fundraising costs 32,402 69,649 Others (fair value adjustments to on business combinations) 18,887 Closing balance 74,532,331 74,574,591 18.4. Breakdown by currency June 30, December 31, 2023 2022 Brazilian Reais 14,355,349 13,347,244 U.S. Dollars 60,172,808 61,216,140 Currency basket 4,174 11,207 74,532,331 74,574,591 18.5. Fundraising costs The fundraising costs are amortized based on the terms of agreements and the effective interest rate. Balance to be amortized June 30, December 31, Type Cost Amortization 2023 2022 Bonds 434,970 255,182 179,788 210,822 CRA and NCE 125,222 119,769 5,453 10,838 Export credits (“export prepayments”) 191,710 132,897 58,813 75,520 Debentures 59,216 16,279 42,937 9,984 BNDES 63,588 52,692 10,896 12,016 IFC - International Finance Corporation 41,943 459 41,484 Others 18,147 17,412 735 873 934,796 594,690 340,106 320,053 18.6. Guarantees Some loan and financing agreements have guarantees clauses, in which the financed equipment or other property, plant and equipment are offered as collateral by the Company, as disclosed in Note 15.1. The Company does not have contracts with restrictive financial clauses (financial covenants) which must be complied with. 18.7. Relevant transactions entered into during the period 18.7.1. BNDES On June 27, 2023, the Company raised R $500,000 from BNDES indexed to the Long-Term Rate (“TLP”), plus a fixed interest rate of 5.23% p.a ., with a principal grace period of 7 (seven) years and maturity in December 2037. The funds were allocated to projects in the forestry sector. 18.7.2. International Finance Corporation (“IFC”) On December 22, 2022, the Company obtained a new credit line (“A&B Loan”) to be financed by the International Finance Corporation (IFC) and a syndicate of commercial banks, in a total amount of US$600,000 (equivalent to R$2,891,520). The financing consists of the following parts: (i) “A-loan” in the amount of US $250,000 (equivalent to R $1,204,800 ) with IFC’s own resources, at a cost of Term SOFR + 1.80% p.a. and a total term of eight years , with a principal grace period of six years ; and (ii) “B-loan,” a syndicated loan in the amount of US $350,000 (equivalent to R $1,686,720 ) at a cost of Term SOFR + 1.60% p.a. and a total term of seven years , with a principal grace period of five years . This credit line was fully utilized by June 30, 2023. The credit operation has sustainability performance indicators (KPIs) associated with goals for: (a) reducing greenhouse gas (GHG) emissions intensity, and (b) increasing the representation of women in leadership positions within the Company. The funds will be allocated to the Cerrado Project. 18.7.3. Advance of exchange contract (“ACC”) On May 19, 2023, the Company raised US$100,000 (equivalent to R$481,920) from BNP Paribas at a fixed rate of 6.00%, with maturity in May 2024. On June 21, 2023, the Company raised US$35,000 (equivalent to R$168,672) from BNP Paribas at a fixed rate of 6.52%, with maturity in June 2024. 18.7.4. Debenture On June 29, 2023, the Company issued debenture in the amount of R$1,000,000. The debenture consists of two parts: (i) an amount of R $500,000 at a cost of IPCA + 6.0188% p.a. and a total term of seven years , with a single maturity in 2030; and (ii) an amount of R $500,000 at a cost of IPCA + 6.2477% p.a. and a total term of ten years , with a single maturity in 2033. 18.8. Significant transactions settled during the period On June 22, 2023, the Company settled a CRA contract in the amount of R $685,239 (principal and interest), with an original maturity in June 2023 and a cost of IPCA + 5.9844% . |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
LEASES | |
LEASES | 19. 19.1. Right of use The balances rolled forward are set out below: Machinery and Ships and Lands equipment Buildings boats Vehicles Total Balance as at December 31, 2021 2,868,411 86,464 88,410 1,748,008 2,730 4,794,023 Additions/updates 849,996 66,821 61,647 4,216 982,680 Depreciation (1) (360,225) (40,732) (64,301) (124,890) (2,303) (592,451) Write-offs (2) (75,026) (75,026) Balance as at December 31, 2022 3,283,156 112,553 85,756 1,623,118 4,643 5,109,226 Additions/updates 290,722 85,493 78,547 490 455,252 Depreciation (1) (188,802) (51,778) (29,419) (62,445) (1,191) (333,635) Write-offs (2) (54) (54) Balance as at June 30, 2023 3,385,022 146,268 134,884 1,560,673 3,942 5,230,789 1) The amount of depreciation related to land is substantially reclassified to biological assets to make up the formation costs. 2) Write-off due to cancellation of contracts. For the six-month period ended June 30, 2023, the Company does not have commitments to lease agreements not yet in force. 19.2. The balance of lease payables on June 30, 2023, measured at present value and discounted at the respective discount rates are set forth below: Average rate - Present value of Nature of agreement % p.a. (1) Maturity (2) liabilities Lands and farms 12.52 April/2050 3,673,964 Machinery and equipment 11.43 April/2035 217,381 Buildings 10.84 September/2031 122,556 Ships and boats 11.39 February/2039 2,178,580 Vehicles 10.83 July/2026 3,503 6,195,984 1) To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements. 2) Refers to the original maturities of the agreements and, therefore, does not consider eventual renewal clauses. The balances rolled forward are set out below: June 30, December 31, 2023 2022 Opening balance 6,182,530 5,893,194 Additions 455,252 982,680 Write-offs (2) (54) (75,026) Payments (577,132) (1,044,119) Accrual of financial charges (1) 327,374 612,042 Exchange rate variations (191,986) (186,241) Closing balance 6,195,984 6,182,530 Current 710,906 672,174 Non-current 5,485,078 5,510,356 1) On June 30, 2023, the amount of R$ 104,137 related to interest expenses on leased lands was capitalized to biological assets to represent the formation cost (R $178,429 as of December 31, 2022). 2) Write-off due to cancellation of contracts. The maturity schedule for future payments not discounted to present value related to lease liabilities is disclosed in Note 4.2. 19.2.1. Amounts recognized in the statement of income for the period The amounts recognized are set out below: June 30, June 30, 2023 2022 Expenses relating to short-term assets 5,559 1,038 Expenses relating to low-value assets 946 571 6,505 1,609 |
PROVISION FOR JUDICIAL LIABILIT
PROVISION FOR JUDICIAL LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
PROVISION FOR JUDICIAL LIABILITIES | |
PROVISION FOR JUDICIAL LIABILITIES | 20. The Company is involved in certain legal proceedings arising in the normal course of its business, which include tax, social security, labor, civil, environment and real estate. The Company classifies the risk of unfavorable decisions in legal proceedings, based on legal advice, which reflects the estimated probable losses. The Company’s Management believes that, based on the available information as of the date of these unaudited condensed consolidated interim financial information, its provisions for tax, social security, labor, civil, environment and real estate risks, accounted for according to IAS 37 are sufficient to cover estimated losses related to its legal proceedings, as set forth below: 20.1. Roll-forward and changes in the provisions for probable losses based on the nature of the proceedings, net of judicial deposits June 30, 2023 Tax and Civil, Contingent social environment liabilities security Labor and real estate assumed (1) (2) Total Provision balance at the beginning of the period 419,915 255,805 118,729 2,645,705 3,440,154 Payments (1,192) (22,839) (868) (24,899) Reversal (4,968) (28,652) (7,507) (88,612) (129,739) Additions 29,147 62,979 11,155 103,281 Monetary adjustment 13,158 10,700 8,889 32,747 Provision balance 456,060 277,993 130,398 2,557,093 3,421,544 Judicial deposits (145,567) (77,101) (23,796) (246,464) Provision balance at the end of the period 310,493 200,892 106,602 2,557,093 3,175,080 1) Amounts arising from tax-related lawsuits with a possible or remote probability of loss in the amount of R $2,410,363 and civil lawsuits in the amount of R $146,730 , measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3- Business Combinations. 2) Reversal due to a change in likelihood and/or due to settlement. December 31, 2022 Tax and Civil, Contingent social environment liabilities security Labor and real estate assumed (1) (2) Total Provision balance at the beginning of the year 477,096 178,925 82,592 2,694,541 3,433,154 Payments (14,948) (44,516) (20,497) (79,961) Reversal (71,446) (53,211) (15,577) (48,836) (189,070) Additions 14,036 157,562 56,834 228,432 Monetary adjustment 15,177 17,045 15,377 47,599 Provision balance 419,915 255,805 118,729 2,645,705 3,440,154 Judicial deposits (149,951) (12,270) (21,623) (183,844) Provision balance at the end of the year 269,964 243,535 97,106 2,645,705 3,256,310 1) Amounts arising from tax-related lawsuits with a possible or remote probability of loss in the amount of R$ 2,448,564 and civil lawsuits in the amount of R$ 197,141 , measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combinations. 2) Reversal due to a change in likelihood and/or due to settlement. 20.1.1. Tax and social security On June 30, 2023, the Company has 30 (thirty) ( 31 (thirty-one) as of December 31, 2022) administrative and judicial proceedings of a tax or social security nature in which the disputed matters are related to IRPJ, CSLL, PIS, COFINS, ICMS among others, whose amounts are provisioned when the likelihood of loss is deemed probable by the Company’s external legal counsel and by Management. 20.1.2. Labor On June 30, 2023, the Company has 1,176 (one thousand, one hundred and seventy-six) as of December 31, 2022 labor lawsuits. In general, the provisioned labor proceedings are related primarily to matters frequently contested by employees of agribusiness companies, such as wages and/or severance payments, in addition to suits filed by outsourced employees of the Company. 20.1.3. Civil, environment and real estate On June 30, 2023, the Company has 77 (seventy-seven) (66 (sixty-six) as at December 31, 2022) civil, environmental and real estate proceedings. The provisioned Civil, environment and real estate proceedings are related primarily to the payment of damages, including those arising from contractual obligations, traffic-related injuries, possessory actions, environmental restoration obligations, claims and others. 20.2. Contingencies with possible losses The Company is involved in tax, civil and labor lawsuits, whose losses have been assessed as possible by Management, supported by legal counsel, and therefore no provision was recorded: June 30, December 31, 2023 2022 Taxes and social security (1) 9,211,342 8,201,246 Labor 224,181 321,428 Civil and environmental (1) 4,981,793 4,414,877 14,417,316 12,937,551 1) The amounts above do not include the fair value adjustments allocated to possible loss risk contingencies representing R $2,537,335 (R $2,614,518 as of December 31, 2022), which were recorded at fair value resulting from business combinations with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combinations, as presented in Note 20.1.1. above. In the six-month period ended June 30, 2023, there were no significant changes in the main nature of these contingencies compared to those disclosed in the annual financial statements for the year ended December 31, 2022 (Note 20). 20.3. Contingent assets In the six-month period ended June 30, 2023, there were no significant changes in the main nature of these contingencies compared to those disclosed in the annual financial statements for the year ended December 31, 2022 (Note 20). |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2023 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 21. EMPLOYEE BENEFIT PLANS The Company provides supplementary pension plan and defined benefit plan, such as medical assistance and life insurance. The characteristics of such benefits were disclosed in the annual financial statements for the year ended December 31, 2022 (Note 21), which did not change during the six-month period ended June 30, 2023. 21.1. Pension plan Contributions made by the Company, for Suzano Prev pension plan managed by Brasilprev Seguros e Previdência S.A., for the six-month period ended June 30, 2023 amounted R$8,650 (R$7,308 as of June 30, 2022) recognized under the cost of sales, selling and general and administrative expenses. 21.2. Defined benefits plan The Company offers the following post-employment benefits in addition to the pension plans, which are measured based on actuarial calculations and recognized in the unaudited condensed consolidated interim financial information. The roll-forward of actuarial liabilities prepared based on actuarial report is set forth below: June 30, December 31, 2023 2022 Opening balance 691,424 675,158 Interest on actuarial liabilities 34,615 59,258 Actuarial loss 12,231 Exchange rate variations (577) Amount arising from the acquisition of MMC Brasil 1,457 Benefits paid (25,563) (54,646) Closing balance 701,933 691,424 |
SHARE-BASED COMPENSATION PLAN
SHARE-BASED COMPENSATION PLAN | 6 Months Ended |
Jun. 30, 2023 | |
SHARE-BASED COMPENSATION PLAN | |
SHARE-BASED COMPENSATION PLAN | 22. For the six-month period ended June 30, 2023, the Company has 3 (three) share-based, long-term compensation plans: (i) Phantom stock option plan (“PS”); (ii) Share Appreciation Rights (“SAR”), both settled in local currency; and (iii) restricted shares, settled in shares. The characteristics and measurement method of each plan were disclosed in the annual financial statements for the year ended December 31, 2022 (Note 22), which did not change during the six-month period ended June 30, 2023. 22.1. Long term compensation plans (“PS and SAR”) The roll-forward arrangements are set out below: Number of shares June 30, December 31, 2023 2022 Opening balance 7,583,185 5,415,754 Granted during of the period 3,318,892 4,152,200 Exercised (1) (244,464) (1,474,506) Exercised due to resignation (1) (24,743) (175,552) Abandoned/cancelled due to resignation (225,126) (334,711) Closing balance 10,407,744 7,583,185 1) The average price of the share options exercised and exercised due to termination of employment on June 30, 2023 was R$ 47.78 (forty seven reais and seventy eight cents) ((R $48.79 (forty eight reais and seventy nine cents) as at December 31, 2022). 22.2. Restricted shares plan The position is set forth below: Date of execution of Price on Restricted year for Program the contract Grant date grant date Shares Granted transfer of shares 2020 01/02/2020 01/02/2021 R$ 51.70 111,685 01/02/2024 2021 01/02/2021 01/02/2022 R$ 53.81 113,161 01/02/2025 2022 01/02/2022 01/02/2023 R$ 52.00 101,164 01/02/2026 2023 01/02/2023 01/02/2023 R$ 49.58 161,355 01/02/2026 487,365 22.3. Measurement assumptions The amounts corresponding to the services received and recognized are set forth below: Liabilities and Equity Statement of income and Equity June 30, December 31, June 30, June 30, 2023 2022 2023 2022 Non-current liabilities Provision for phantom stock plan 183,589 162,117 (32,731) (31,389) Equity Stock options granted 22,584 20,790 (4,159) (2,668) Shares granted (2,365) 2,365 22,584 18,425 (4,159) (303) (36,890) (31,692) |
LIABILITIES FOR ASSETS ACQUISIT
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | 6 Months Ended |
Jun. 30, 2023 | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | 23. June 30, December 31, 2023 2022 Assets acquisitions Vitex/Parkia (1) 1,758,365 1,758,365 Business combinations Facepa (2) 25,884 42,655 Vale Florestar Fundo de Investimento em Participações (“VFFIP”) (3) 254,980 261,302 280,864 303,957 280,864 2,062,322 Current 101,207 1,856,763 Non-current 179,657 205,559 1) On June 22, 2022, the Company acquired all the shares of the Parkia structure companies, in the amount of US $667,000 (equivalent to R $3,444,255 on the date of execution of the agreement), upon the payment of US $330,000 (equivalent to R $1,704,054 on the date of the transaction), on June 22, 2023, the payment of the second installment in the amount of US $337,000 (equivalent to R $1,615,140 on the transaction date) was made. 2) Acquired in March 2018, for the amount of R$ 307,876 , upon the payment of R$ 267,876 , with the remainder updated at the IPCA, adjusted for possible losses incurred up to the payment date, with maturity in March 2028. 3) On August 2014, the Company acquired Vale Florestar S.A. through VFFIP, for a total amount of R$ 528,941 upon the payment of R$ 44,998 , and the remainder with maturity up to August 2029. The annual settlements, carried out in the month of August, are subject to interest and updated by the variations of the US Dollar exchange rate, and partially updated by the IPCA. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 24. SHAREHOLDERS’ EQUITY 24.1 Share capital On June 30, 2023, Suzano’s share capital was R$9,269,281 divided into 1,324,117,615 common shares, all nominative, book-entry shares without par value. Expenses related to the public offering were R$33,735, totaling a net share capital of R$9,235,546. The breakdown of the share capital is as set out below: June 30, December 31, 2023 2022 Quantity (%) Quantity (%) Controlling Shareholders Suzano Holding S.A. 367,612,329 27.76 367,612,329 27.01 Controller 196,064,797 14.81 195,064,797 14.33 Managements and related persons 34,097,609 2.57 34,102,309 2.51 Alden Fundo de Investimento em Ações 26,154,744 1.98 26,154,744 1.91 623,929,479 47.12 622,934,179 45.76 Treasury (Note 24.2) 32,466,900 2.45 51,911,569 3.81 Other shareholders 667,721,236 50.43 686,417,836 50.43 1,324,117,615 100.00 1,361,263,584 100.00 By a resolution of the Board of Directors, the share capital may be increased, irrespective of any amendments to the Bylaws, up to the limit of 780,119,712 common shares, all exclusively book-entry shares. For the six-month period ended June 30, 2023, SUZB3 common shares closed the period quoted at R$44.22 (forty-four reais and twenty-two cents) and R$48.24 (forty-eight reais and twenty-four cents) on December 31, 2022. 24.2 Treasury shares In the six-month period ended June 30, 2023, the Company had 32,466,900 (51,911,569 as of December 31, 2022) of its own common shares held in treasury, with an average cost of R$42.55 (forty-two reais and fifty-five cents) per share, with a historical value of R$1,381,600 (R$2,120,324 as at December 31, 2022) and the market corresponding to R$1,435,686 ( R$2,504,214 as at December 31, 2022). On February 28, 2023, 37,145,969 common shares were cancelled, as described in Note 1.2.5. The Company has repurchase programs, approved on October 27, 2022, with a limit of 20,000,000 common shares of its own issue, with a term of 18 months . Up to June 30, 2023, the Company had repurchased 17,701,300 common shares with a total of R $778,500 , of which R $721,052 had a cash effect up to June 30, 2023 and R $57,448 were settled in the subsequent month. Average cost Historical Market Quantity per share value value Balances at December 31, 2021 12,042,004 18.13 218,265 656,530 Realization in the restricted stock plan 130,435 18.13 2,365 8,156 Repurchase 40,000,000 47.61 1,904,424 1,904,424 Balances at December 31, 2022 51,911,569 40.84 2,120,324 2,504,214 Repurchase 17,701,300 43.98 778,500 778,500 Canceled 37,145,969 40.84 1,517,224 1,570,532 Balances at June 30, 2023 32,466,900 42.55 1,381,600 1,435,686 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 25. EARNINGS (LOSS) PER SHARE 25.1 Basic The basic earnings (loss) per share is measured by dividing the profit attributable to the Company’s shareholders by the weighted average number of common shares issued during the period, excluding the common shares acquired by the Company and held as treasury shares. June 30, June 30, 2023 2022 Resulted of the period attributable to controlling shareholders 10,310,498 10,480,342 Weighted average number of shares in the period – in thousands 1,336,021 1,361,264 Weighted average treasury shares – in thousands (26,791) (14,088) Weighted average number of outstanding shares – in thousands 1,309,230 1,347,176 Basic earnings (loss) per common share - R$ 7.87524 7.77949 25.2 Diluted The diluted earnings (loss) per share is measured by adjusting the weighted average of outstanding common shares, assuming the conversion of all common shares with dilutive effects. June 30, June 30, 2023 2022 Resulted of the period attributed to controlling shareholders 10,310,498 10,480,342 Weighted average number of shares during the period (except treasury shares) – in thousands 1,309,230 1,347,176 Average number of potential shares (stock options) – in thousands 487 215 Weighted average number of shares (diluted) – in thousands 1,309,717 1,347,391 Diluted earnings (loss) per common share - R$ 7.87231 7.77825 25.3 Profit reserves Reserves are constituted by the allocation of the Company’s profits, after the allocation for the payment of the minimum mandatory dividends and after the allocation to the various profit reserves. In April 26, 2023, the shareholders’ meeting approved the retention of profits in the amount of R$14,972,324, for investments on the Company’s productive capacity and improvement of processes in order to meet the Company’s growth strategy commitments. |
NET FINANCIAL RESULT
NET FINANCIAL RESULT | 6 Months Ended |
Jun. 30, 2023 | |
NET FINANCIAL RESULT | |
NET FINANCIAL RESULT | 26. June 30, June 30, 2023 2022 Financial expenses Interest on loans, financing and debentures (1) (1,797,937) (1,742,976) Amortization of transaction costs (2) (32,421) (36,838) Interest expenses on lease liabilities (3) (223,237) (210,597) Amortization of fair value adjustments (9,452) Other (254,471) (183,660) (2,308,066) (2,183,523) Financial income Cash and cash equivalents and marketable securities 683,608 303,822 Other 106,290 48,745 789,898 352,567 Results from derivative financial instruments Income 6,758,955 8,653,252 Expenses (1,859,936) (4,032,366) 4,899,019 4,620,886 Monetary and exchange rate variations, net Exchange rate variations on loans, financing and debentures 4,543,048 3,812,954 Leases 191,986 176,291 Other assets and liabilities (4) (1,110,099) (818,556) 3,624,935 3,170,689 Net financial result 7,005,786 5,960,619 1) Excludes R$ 511,650 arising from capitalized loan costs, substantially related to property, plant and equipment in progress of the Cerrado Project for the six-month period ended June 30, 2023 (R$ 108,972 as at June 30, 2022). 2) Includes expense of R$ 19 arising from transaction costs on loans and financing that were recognized directly in the statement of income (R$ 39 as at June 30, 2022). 3) Includes R$ 104,137 referring to the reclassification to the biological assets item for the composition of the formation cost (R$ 84,470 as of June 30, 2022). 4) Includes effects of exchange rate variations of trade accounts receivable, trade accounts payable, cash and cash equivalents, marketable securities and others. |
NET SALES
NET SALES | 6 Months Ended |
Jun. 30, 2023 | |
NET SALES | |
NET SALES | 27. June 30, June 30, 2023 2022 Gross sales 24,552,121 25,466,749 Sales deductions Returns and cancellations (65,560) (42,388) Discounts and rebates (3,019,895) (3,187,446) 21,466,666 22,236,915 Taxes on sales (1,030,649) (974,425) Net sales 20,436,017 21,262,490 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 28. SEGMENT INFORMATION 28.1 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. 28.2 June 30, 2023 Pulp Paper Total Net sales 16,302,347 4,133,670 20,436,017 Domestic market (Brazil) 1,249,493 2,971,910 4,221,403 Foreign markets 15,052,854 1,161,760 16,214,614 EBITDA 9,155,697 1,812,784 10,968,481 Depreciation, depletion and amortization (3,593,516) Operating profit before net financial income (“EBIT”) (1) 7,374,965 EBITDA margin (%) 56.16% 43.85% 53.67% 1) (“Earnings before interest and tax”). June 30, 2022 Pulp Paper Total Net sales 17,496,421 3,766,069 21,262,490 Domestic market (Brazil) 1,246,965 2,589,671 3,836,636 Foreign market 16,249,456 1,176,398 17,425,854 EBITDA 10,168,584 1,402,897 11,571,481 Depreciation, depletion and amortization (3,594,963) Operating profit before net financial income (“EBIT”) (1) 7,976,518 EBITDA margin (%) 58.12% 37.25% 54.42% 1) (“Earnings before interest and tax”). 28.3 June 30, June 30, Products 2023 2022 Market pulp (1) 16,302,347 17,496,421 Printing and writing paper (2) 3,384,698 3,089,666 Paperboard 708,576 644,809 Other 40,396 31,594 20,436,017 21,262,490 1) Net sales of fluff pulp represent approximately 0.8% of total net sales, and therefore were included in market pulp net sales. ( 0.8% as at June 30, 2022). 2) Net sales of tissue represent approximately 3.1% of total net sales, and therefore were included in printing and writing paper net sales. ( 2.5% as at June 30, 2022). 28.4 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: June 30, December 31, 2023 2022 Pulp 7,897,051 7,897,051 Paper (1) 302,130 119,332 8,199,181 8,016,383 1) On June 1, 2023, the Company completed the acquisition of MMC Brasil.(Note 1.2.3.) |
INCOME (EXPENSES) BY NATURE
INCOME (EXPENSES) BY NATURE | 6 Months Ended |
Jun. 30, 2023 | |
INCOME (EXPENSES) BY NATURE | |
INCOME (EXPENSES) BY NATURE | 29. June 30, June 30, 2023 2022 Cost of sales Personnel expenses (711,401) (652,396) Costs of raw materials, materials and services (5,336,373) (5,351,098) Logistics costs (2,129,684) (2,176,264) Depreciation, depletion and amortization (3,144,107) (3,088,132) Other (1) (875,290) (287,875) (12,196,855) (11,555,765) Selling expenses Personnel expenses (126,331) (115,604) Services (62,108) (63,133) Logistics costs (516,380) (509,420) Depreciation and amortization (475,228) (474,249) Other (2) (51,115) (35,302) (1,231,162) (1,197,708) General and administrative expenses Personnel expenses (489,463) (437,176) Services (171,346) (142,973) Depreciation and amortization (55,014) (51,639) Other (3) (101,620) (69,444) (817,443) (701,232) Other operating (expenses) income net Rents and leases 1,476 1,058 Results from sales of other products, net 48,312 34,723 Results from sales and disposals of property, plant and equipment, intangible and biological assets, net (111,195) 8,041 Result on fair value adjustment of biological assets 1,256,315 171,618 Depletion and amortization 80,833 19,057 Tax credits - ICMS from the PIS/COFINS calculation basis (1,324) Provision for judicial liabilities (71,878) (64,300) Other operating income (expenses), net (19,874) (9,447) 1,183,989 159,426 1) Includes R$ 411,718 related to maintenance downtime, costing (R$ 368,606 as at June 30, 2022). 2) Includes expected credit losses, insurance, materials for use and consumption, travel, accommodation, trade fairs and events. 3) Includes, substantially, corporate expenses, insurance, materials for use and consumption, social programs and donations, travel and accommodation. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Accounting policies adopted | 3.1. The new standards and interpretations issued, until the issuance of the Company’s unaudited condensed consolidated interim financial information, are described below. 3.1.1. 3.1.1.1. Presentation of the financial statements – IAS 1 – Classification of liabilities as current and non-current (applicable for annual periods beginning on/or after January 1, 2023, with early adoption permitted) The amendments to IAS 1 affect only the presentation of liabilities as current or non-current in the balance sheet, and not the amount or the timing of the recognition of any asset, liability, income or expense, or the information disclosed about these items. The amendments clarify that the classification of liabilities as current or non-current is based on the rights existing at the balance sheet date, specify that the classification is not affected by expectations about whether an entity will exercise its right to postpone the settlement of the liability, explain that the rights exist if restrictive clauses are complied with at the balance sheet date, and introduce the definition of ‘settlement’ to clarify that it refers to a transfer to a counterparty of an amount in cash, equity instruments, other assets or services. The Company assessed the content of this pronouncement and did not identify any impacts. 3.1.1.2. Amendments to IAS 1 and IFRS Practice Statement 2 Making Materiality Judgements – Disclosure of Accounting Policies (applicable for annual periods beginning on/or after January 1, 2023, with early adoption permitted) The amendments change the requirements in IAS 1 with regard to the disclosure of accounting policies. The amendments replace all instances of the term ‘significant accounting policies’ with ‘material accounting policy information’. Accounting policy information is material if, considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence the decisions that the primary users of the financial statements make on the basis of those financial statements. The supporting paragraphs in IAS 1 are also amended to clarify that accounting policy information that relates to immaterial transactions, other events or conditions is immaterial, and need not be disclosed. Accounting policy information may be material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial. However, not all accounting policy information relating to material transactions, other events or conditions is itself material. The Company assessed the content of this pronouncement and did not identify any impacts. 3.1.1.3. Amendments to IAS 8 Definition of Accounting Estimates (applicable for annual periods beginning on/or after January 1, 2023) The amendments replace the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The definition of a change in accounting estimates was deleted. However, the Board retained the concept of changes in accounting estimates in the Standard through the following clarifications: (i) A change in accounting estimates that results from new information or new developments does not constitute the correction of an error (ii) The effects of a change in an input or a measurement technique used to develop an accounting estimate represent changes in accounting estimates if they do not result from the correction of prior period errors The Company assessed the content of this pronouncement and did not identify any impacts. 3.1.1.4. Amendments to IAS 12 – Deferred tax related to assets and liabilities arising from a single transaction (applicable for annual periods beginning on/or after January 1, 2023) The amendments introduce a further exception to the initial recognition exemption. Under the amendments, an entity may not apply the initial recognition exemption for transactions that give rise to equal taxable and deductible temporary differences. Depending on the applicable tax law, equal taxable and deductible temporary differences may arise from the initial recognition of an asset and liability in a transaction that is not a business combination and affects neither the accounting nor the taxable profit. For example, this may arise upon the recognition of a lease liability and the corresponding right-of-use asset, applying IFRS 16 at the commencement date of a lease. Following the amendments to IAS 12, an entity is required to recognise the related deferred tax asset and liability, with the recognition of any deferred tax asset being subject to the recoverability criteria in IAS 12. The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of the earliest comparative period, an entity recognises: (i) A deferred tax asset (to the extent that it is probable that taxable profits will be available against which the deductible temporary difference can be utilized) and a deferred tax liability for all deductible and taxable temporary differences associated with: ● Right-of-use assets and lease liabilities; and ● Decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset. (ii) The cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or another component of equity, as appropriate) at that date. The Company assessed the content of this pronouncement and did not identify any impacts. |
COMPANY'S OPERATIONS (Tables)
COMPANY'S OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
COMPANY'S OPERATIONS | |
Summary of equity interest in the entities | % equity interest June 30, December 31, Entity/Type of investment Main activity Country 2023 2022 Consolidated F&E Tecnologia do Brasil S.A. (Direct) Biofuel production, except alcohol Brazil 100.00 % 100.00 % Fibria Celulose (USA) Inc. (Direct) Business office United States of America 100.00 % 100.00 % Fibria Overseas Finance Ltd. (Direct) Financial fundraising Cayman Island 100.00 % 100.00 % Fibria Terminal de Celulose de Santos SPE S.A. (Direct) Port operations Brazil 100.00 % 100.00 % FuturaGene Ltd. Biotechnology research and development England 100.00 % 100.00 % FuturaGene Delaware Inc. (Indirect) Biotechnology research and development United States of America 100.00 % 100.00 % FuturaGene Israel Ltd. (Indirect) Biotechnology research and development Israel 100.00 % 100.00 % FuturaGene Inc. (Indirect) Biotechnology research and development United States of America 100.00 % 100.00 % Maxcel Empreendimentos e Participações S.A. (Direct) Holding Brazil 100.00 % 100.00 % Itacel - Terminal de Celulose de Itaqui S.A. (Indirect) Port operations Brazil 100.00 % 100.00 % MMC Brasil Indústria e Comércio Ltda (Direct) (1) Industrialization and commercialization of wipes, cleaning and sanitary products. Brazil 100.00 % Mucuri Energética S.A. (Direct) Power generation and distribution Brazil 100.00 % 100.00 % Paineiras Logística e Transportes Ltda. (Direct) Road freight transport Brazil 100.00 % 100.00 % Portocel - Terminal Espec. Barra do Riacho S.A. (Direct) Port operations Brazil 51.00 % 51.00 % Projetos Especiais e Investimentos Ltda. (Direct) Commercialization of equipment and parts Brazil 100.00 % 100.00 % SFBC Participações Ltda. (Direct) Packaging production Brazil 100.00 % 100.00 % Stenfar S.A. Indl. Coml. Imp. Y. Exp. (Direct) Commercialization of paper and computer materials Argentina 100.00 % 100.00 % Suzano Austria GmbH. (Direct) Business office Austria 100.00 % 100.00 % Suzano Canada Inc. (Direct) Lignin research and development Canada 100.00 % 100.00 % Suzano Ecuador S.A.S. (Direct) (2) Commercialization of paper Ecuador 100.00 % Suzano Finland Oy (Direct) Industrialization and commercialization of cellulose, microfiber cellulose and paper Finland 100.00 % 100.00 % Suzano International Finance B.V (Direct) Financial fundraising Netherlands 100.00 % 100.00 % Suzano International Trade GmbH. (Direct) Business office Austria 100.00 % 100.00 % Suzano Material Technology Development Ltd. (Direct) Biotechnology research and development China 100.00 % 100.00 % Suzano Operações Industriais e Florestais S.A. (Direct) Industrialization, commercialization and exporting of pulp Brazil 100.00 % 100.00 % Suzano Pulp and Paper America Inc. (Direct) Business office United States of America 100.00 % 100.00 % Suzano Pulp and Paper Europe S.A. (Direct) Business office Switzerland 100.00 % 100.00 % Suzano Shanghai Ltd. (Direct) Business office China 100.00 % 100.00 % Suzano Shanghai Trading Ltd. (Direct) (3) Business office China 100.00 % Suzano Singapura Pte. Ltd (Direct) (4) Business office Singapore 100.00 % Suzano Trading International KFT(Direct) Business office Hungary 100.00 % 100.00 % Suzano Ventures LLC (Direct) Corporate venture capital United States of America 100.00 % 100.00 % % equity interest June 30, December 31, Entity Main activity Country 2023 2022 Joint operation Veracel Celulose S.A. (Direct) Industrialization, commercialization and exporting of pulp Brazil 50.00 % 50.00 % Equity Biomas Serviços Ambientais, Restauração e Carbono S.A. (Direct) (5) Restoration, conservation and preservation of forests Brazil 16.66 % 100.00 % Ensyn Corporation (Direct) (6) Biofuel research and development United States of America 26.07 % 26.59 % F&E Technologies LLC (Direct/Indirect) Biofuel production, except alcohol United States of America 50.00 % 50.00 % Ibema Companhia Brasileira de Papel (Direct) Industrialization and commercialization of paperboard Brazil 49.90 % 49.90 % Spinnova Plc (Direct) Research of sustainable raw materials for the textile industry Finland 19.03 % 19.03 % Woodspin Oy (Direct/Indirect) Development and production of cellulose-based fibers, yarns and textile filaments Finland 50.00 % 50.00 % Fair value through other comprehensive income Celluforce Inc. (Direct) Nanocrystalline pulp research and development Canada 8.28 % 8.28 % 1) On June 1, 2023, the Company completed the acquisition of MMC Brasil Indústria e Comércio Ltda.(Note 1.2.3.) 2) On March 8, 2023, establishment of legal entity with full equity interest from Suzano S.A. 3) On May 19, 2023, establishment of legal entity with full equity interest from Suzano S.A. 4) On May 23, 2023, establishment of legal entity with full equity interest from Suzano S.A. 5) On February 27 and March 21, 2023, equivalent contributions were made by the six shareholders of Biomas to constitute an equity interest (Note 1.2.6). 6) On May 17, 2023, the percentage of interest was changed due to the dilution of the shares. |
Summary of allocation of preliminary purchase price | Total purchase consideration (full payment on closing) 1,072,657 Book value of Shareholders’ Equity of MMC Brasil 587,226 Fair value adjustment Inventories (1) 7,120 Property, plant and equipment (2) 105,858 Trademark and patents (3) 189,655 Net identifiable assets acquired 889,859 Goodwill (4) 182,798 (1) Measured considering the balance of finished products based on selling price, net of selling expenses. (2) Measured based on the analysis of market data on comparable transactions and cost quantification, based on the estimate of replacement or replacement value of the assets. (3) Measured based on revenue projections for products under the evaluated brands, according to the Refief from Royalties methodology. (4) Goodwill is attributable to the workforce and expected future profitability of the acquired business. It will be deductible for tax purposes. |
FINANCIAL INSTRUMENTS AND RIS_2
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Schedule of financial instruments by category | All transactions with financial instruments are recognized for accounting purposes and classified in the following categories: June 30, December 31, Note 2023 2022 Assets Amortized cost Cash and cash equivalents 5 11,860,415 9,505,951 Trade accounts receivable 7 6,488,192 9,607,012 Dividends receivable 11 7,334 Other assets (1) 788,401 931,173 19,137,008 20,051,470 Fair value through other comprehensive income Investments - Celluforce 14.1 23,541 24,917 23,541 24,917 Fair value through profit or loss Derivative financial instruments 4.5.1 5,479,787 4,873,749 Marketable securities 6 8,354,870 7,965,742 13,834,657 12,839,491 32,995,206 32,915,878 Liabilities Amortized cost Trade accounts payable 17 6,347,954 6,206,570 Loans, financing and debentures 18.1 74,532,331 74,574,591 Lease liabilities 19.2 6,195,984 6,182,530 Liabilities for assets acquisitions and subsidiaries 23 280,864 2,062,322 Dividends payable 11 2,678 5,094 Other liabilities (1) 137,148 147,920 87,496,959 89,179,027 Fair value through profit or loss Derivative financial instruments 4.5.1 2,218,716 4,846,795 2,218,716 4,846,795 89,715,675 94,025,822 56,720,469 61,109,944 1) Does not include items not classified as financial instruments. |
Summary of estimated fair value of loans and financing | The estimated fair values of loans and financing are set forth below: Yield used to discount/ June 30, December 31, methodology 2023 2022 Quoted in the secondary market In foreign currency Bonds Secondary Market 37,361,853 40,309,832 Estimated present value In foreign currency Export credits (“Prepayment”) LIBOR 16,760,316 17,724,315 Assets Financing SOFR 217,540 138,644 IFC - International Finance Corporation SOFR 3,105,751 In local currency BNDES – TJLP DI 1 230,227 292,487 BNDES – TLP DI 1 1,971,409 1,393,010 BNDES – Fixed DI 1 10,219 21,656 BNDES – SELIC (“Special Settlement and Custody System”) DI 1 644,710 575,129 BNDES - Currency basket DI 1 4,122 10,866 CRA (“Agribusiness Receivables Certificate”) DI 1/IPCA 1,264,031 1,835,336 Debentures DI 1 6,663,101 5,643,440 NCE (“Export Credit Notes”) DI 1 1,381,393 1,384,396 NCR (“Rural Credit Notes”) DI 1 293,475 294,089 Export credits (“Prepayment”) DI 1 1,303,156 1,320,415 71,211,303 70,943,615 |
Schedule of contractual maturities of financial liabilities | The remaining contractual maturities of financial liabilities are presented as of the balance sheet date. The amounts as set forth below consist of undiscounted cash flow, and include interest payments and exchange rate variations, and therefore may not reconcile with the amounts disclosed in the balance sheet. June 30, 2023 Book Future Up to 1 1 - 2 More than value value year years 2 - 5 years 5 years Liabilities Trade accounts payable 6,347,954 6,347,954 6,347,954 Loans, financing and debentures 74,532,331 101,685,556 9,107,311 12,248,908 29,960,769 50,368,568 Lease liabilities 6,195,984 10,891,670 1,113,507 1,959,036 1,774,219 6,044,908 Liabilities for asset acquisitions and subsidiaries 280,864 313,645 98,899 94,575 89,293 30,878 Derivative financial instruments 2,218,716 3,125,242 527,889 827,564 1,740,146 29,643 Dividends payable 2,678 2,678 2,678 Other liabilities 137,148 137,148 52,585 84,563 89,715,675 122,503,893 17,250,823 15,214,646 33,564,427 56,473,997 December 31, 2022 Book Future Up to 1 1 - 2 More than value value year years 2 - 5 years 5 years Liabilities Trade accounts payable 6,206,570 6,206,570 6,206,570 Loans, financing and debentures 74,574,591 105,341,912 6,823,274 7,899,772 39,476,527 51,142,339 Lease liabilities 6,182,530 11,053,487 1,050,947 992,379 2,668,855 6,341,305 Liabilities for asset acquisitions and subsidiaries 2,062,322 2,203,302 1,986,633 99,331 57,421 59,917 Derivative financial instruments 4,846,795 6,515,262 728,070 1,341,108 4,299,970 146,114 Dividends payable 5,094 5,094 5,094 Other liabilities 147,920 147,920 61,500 86,420 94,025,822 131,473,547 16,862,088 10,419,010 46,502,773 57,689,675 |
Schedule of net exposure of assets and liabilities in foreign currency | The assets and liabilities that are exposed to foreign currency, substantially in U.S. Dollars, are set forth below: June 30, December 31, 2023 2022 Assets Cash and cash equivalents 11,248,274 8,039,218 Marketable securities 4,826,627 4,510,652 Trade accounts receivable 4,845,044 7,612,768 Derivative financial instruments 4,202,786 3,393,785 25,122,731 23,556,423 Liabilities Trade accounts payable (2,028,936) (2,030,806) Loans and financing (60,176,982) (61,216,140) Liabilities for asset acquisitions and subsidiaries (186,058) (2,053,259) Derivative financial instruments (2,136,399) (4,698,323) (64,528,375) (69,998,528) (39,405,644) (46,442,105) |
Schedule of derivatives by type of contract | The positions of outstanding derivatives are set forth below: Notional value, net in U.S.$ Fair value June 30, December 31, June 30, December 31, 2023 2022 2023 2022 Instruments as part of protection strategy Operational hedges ZCC 4,815,050 6,866,800 3,201,865 1,596,089 NDF (R$ x US$) 243,100 248,100 159,434 (2,474) NDF (€ x US$) 399,328 544,702 140,411 161,055 Debt hedges Swap LIBOR to Fixed (US$) 3,143,877 3,200,179 927,104 1,052,546 Swap IPCA to CDI (notional in Brazilian Reais) 2,130,618 1,741,787 245,159 278,945 Swap IPCA to Fixed (US$) 121,003 (29,910) Swap CDI x Fixed (US$) 1,265,004 1,863,534 (1,262,085) (2,566,110) Pre-fixed Swap to US$ (US$) 350,000 350,000 (360,856) (503,605) Commodity Hedge Swap US-CPI (US$) (1) 130,810 124,960 187,618 40,418 Swap VLSFO/Brent 128,307 22,421 3,261,071 26,954 Current assets 3,747,881 3,048,493 Non-current assets 1,731,906 1,825,256 Current liabilities (483,512) (667,681) Non-current liabilities (1,735,204) (4,179,114) 3,261,071 26,954 (1) The embedded derivative refers to a swap contract for the sale of price variations in United States Dollars and US-CPI within the term of a forest partnership with a standing wood supply contract. |
Schedule of maturity analysis for derivatives | June 30, December 31, 2023 2022 2023 2,413,838 2,380,812 2024 1,785,080 297,156 2025 (477,814) (1,225,193) 2026 onwards (460,033) (1,425,821) 3,261,071 26,954 |
Schedule of long and short positions of outstanding derivatives | The outstanding derivatives positions are set forth below: Notional value Fair value June 30, December 31, June 30, December 31, Currency 2023 2022 2023 2022 Debt hedges Assets Swap CDI to Fixed (US$) R$ 4,623,091 7,081,545 368,657 617,835 Swap Pre-Fixed to US$ R$ 1,317,226 1,317,226 45,329 Swap LIBOR to Fixed (US$) US$ 3,143,877 3,200,000 927,104 1,052,546 Swap IPCA to CDI IPCA 2,294,552 2,041,327 325,275 427,417 Swap IPCA to US$ IPCA 610,960 1,621,036 2,143,127 Liabilities Swap CDI to Fixed (US$) US$ 1,265,000 1,863,534 (1,630,742) (3,183,945) Swap Pre-Fixed to US$ US$ 350,000 350,000 (360,856) (548,934) Swap LIBOR to Fixed (US$) US$ 3,143,877 3,200,000 Swap IPCA to CDI R$ 2,130,618 1,741,787 (80,116) (148,472) Swap IPCA to US$ US$ 121,003 (29,910) (2,071,714) (3,911,261) (450,678) (1,768,134) Operational hedge Zero cost collar (US$ x R$) US$ 4,815,050 6,866,800 3,201,865 1,596,089 NDF (R$ x US$) US$ 243,100 248,100 159,434 (2,474) NDF (€ x US$) US$ 399,328 544,702 140,411 161,055 3,501,710 1,754,670 Commodity hedge Swap US-CPI (standing wood) (1) US$ 130,810 124,960 187,618 40,418 Swap VLSFO/Brent US$ 128,307 22,421 210,039 40,418 3,261,071 26,954 (1) The embedded derivative refers to the swap contracts for selling price variations in US$ and the US-CPI in forest partnership with a standing wood supply contract. |
Schedule of fair value settled derivatives | The settled derivatives positions are set forth below: June 30, December 31, 2023 2022 Operational hedge Zero cost collar (R$ x US$) 1,445,973 718,618 NDF (R$ x US$) 18,538 8,301 NDF (€ x US$) 50,679 7,113 1,515,190 734,032 Commodity hedge 8,853 Swap VLSFO/other 8,853 Debt hedge Swap CDI to Fixed (US$) (283,888) (261,570) Swap IPCA to CDI (Brazilian Reais) 158,092 (5,180) Swap IPCA to Fixed (US$) (3,945) 171 Swap Pre-Fixed to US$ 52,746 54,128 Swap LIBOR to Fixed (US$) 217,852 (239,356) 140,857 (451,807) 1,664,900 282,225 |
Schedule of fair value hierarchy | June 30, 2023 Level 2 Level 3 Total Assets At fair value through profit or loss Derivative financial instruments 5,479,787 5,479,787 Marketable securities 8,354,870 8,354,870 13,834,657 13,834,657 At fair value through other comprehensive income Other investments - CelluForce 23,541 23,541 23,541 23,541 Biological assets 16,914,120 16,914,120 16,914,120 16,914,120 Total assets 13,834,657 16,937,661 30,772,318 Liabilities At fair value through profit or loss Derivative financial instruments 2,218,716 2,218,716 2,218,716 2,218,716 Total liabilities 2,218,716 2,218,716 December 31, 2022 Level 2 Level 3 Total Assets At fair value through profit or loss Derivative financial instruments 4,873,749 4,873,749 Marketable securities 7,965,742 7,965,742 12,839,491 12,839,491 At fair value through other comprehensive income Other investments - CelluForce 24,917 24,917 24,917 24,917 Biological assets 14,632,186 14,632,186 14,632,186 14,632,186 Total assets 12,839,491 14,657,103 27,496,594 Liabilities At fair value through profit or loss Derivative financial instruments 4,846,795 4,846,795 4,846,795 4,846,795 Total liabilities 4,846,795 4,846,795 |
Currency Risk | Financial instruments, excluding derivatives | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Summary of sensitivity analysis | The following table set forth the potential impacts at their absolute amounts: June 30, 2023 Effect on profit or loss Probable Possible Remote (base value) (25%) (50%) Cash and cash equivalents 11,248,274 2,812,069 5,624,137 Marketable securities 4,826,627 1,206,657 2,413,314 Trade accounts receivable 4,845,044 1,211,261 2,422,522 Trade accounts payable (2,028,936) (507,234) (1,014,468) Loans and financing (60,176,982) (15,044,246) (30,088,491) Liabilities for asset acquisitions and subsidiaries (186,058) (46,515) (93,029) |
Currency Risk | Derivative financial instruments | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Summary of sensitivity analysis | The following table set out the possible impacts assuming these scenarios: June 30, 2023 Effect on profit or loss Probable Possible Remote (base value) 25% 50% Dollar/Real Derivative financial instruments Derivative options 3,201,865 (3,777,232) (7,621,974) Derivative swaps (450,678) (1,728,220) (3,442,041) Derivative Non-Deliverable Forward (‘NDF’) Contracts 159,434 (286,048) (572,176) Embedded derivatives 187,618 (85,533) (171,067) NDF parity derivatives (1) 140,411 (47,180) (84,699) Commodity Derivatives 22,421 (5,607) (11,212) Dollar/Euro Derivative financial instruments NDF parity derivatives (1) 140,411 (562,869) (1,125,812) (1) |
Interest rate risk | Financial instruments, excluding derivatives | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Summary of sensitivity analysis | The following table set forth the possible impacts assuming these scenarios in absolute amounts: June 30, 2023 Effect on profit or loss Possible Remote Probable (25%) (50%) CDI/SELIC Cash and cash equivalents 560,985 19,144 38,287 Marketable securities 3,528,243 120,401 240,803 Loans and financing 8,125,522 277,283 554,567 TJLP Loans and financing 277,763 5,055 10,111 LIBOR Loans and financing 15,645,428 216,902 433,803 SOFR Loans and financing 3,115,211 41,030 82,060 |
Interest rate risk | Derivative financial instruments | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Summary of sensitivity analysis | The following table sets out the possible impacts of these assumed scenarios: June 30, 2023 Effect on profit or loss Probable Remote Probable 25% 50% CDI Derivative financial instruments Liabilities Derivative options 3,201,865 (388,599) (747,669) Derivative swaps (450,678) (5,108) (11,749) LIBOR Derivative financial instruments Liabilities Derivative swaps (450,678) 260,364 520,442 |
U.S. Consumer Price Index | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Summary of sensitivity analysis | The following table sets out the possible impacts, assuming these scenarios in absolute amounts: June 30, 2023 Effect on profit or loss Probable Possible Remote (base value) (25%) (50%) Embedded derivative in a commitment to purchase standing wood, originating from a forest partnership agreement 187,618 (31,171) (64,295) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
CASH AND CASH EQUIVALENTS | |
Schedule of cash and cash equivalents | Average yield June 30, December 31, p.a. % 2023 2022 Cash and banks (1) 5.34 10,327,055 8,064,193 Cash equivalents Local currency Fixed-term deposits (compromised) 97.30 of CDI 560,985 1,441,758 Foreign currency Fixed-term deposits (2) 6.01 972,375 11,860,415 9,505,951 (1) Refers mainly to investments in foreign currency under the Sweep Account modality, which is a remunerated account the balance of which is invested and made available automatically each day. (2) Refers to Time Deposit applications, with maturity up to 90 days, which is a remunerated bank deposit with a specific maturity period and is subject to an insignificant risk of changes in value. |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
MARKETABLE SECURITIES | |
Schedule of marketable securities | Average yield June 30, December 31, p.a. % 2023 2022 In local currency Private funds 112.40 of CDI 1,034,750 1,208,975 Private Securities (“CDBs”) 100.51 of CDI 2,052,353 1,827,012 CDBs - Escrow Account (1) 100.24 of CDI 441,140 419,103 3,528,243 3,455,090 Foreign currency Time deposits (2) 6.39 4,563,527 4,386,589 Other 263,100 124,063 4,826,627 4,510,652 8,354,870 7,965,742 Current 7,913,730 7,546,639 Non-Current 441,140 419,103 (1) Includes escrow accounts, which will be released only after obtaining the applicable governmental approvals, and pending compliance by the Company with the conditions precedent in transactions involving the sale of rural properties. (2) Refers to Time Deposit investments, with maturities over 90 days, which are remunerated bank deposits with specific maturity periods. |
TRADE ACCOUNTS RECEIVABLE (Tabl
TRADE ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
TRADE ACCOUNTS RECEIVABLE | |
Schedule of trade accounts receivable by type of customer | June 30, December 31, 2023 2022 Domestic customers Third parties 1,599,377 1,915,745 Related parties (Note 11) (1) 73,564 99,608 Foreign customers Third parties 4,845,044 7,612,768 (-) Expected credit losses (29,793) (21,109) 6,488,192 9,607,012 (1) |
Schedule of trade accounts receivable by maturity | June 30, December 31, 2023 2022 Current 5,432,105 8,652,376 Overdue Up to 30 days 855,757 777,150 From 31 to 60 days 44,915 74,253 From 61 to 90 days 50,212 54,784 From 91 to 120 days 9,921 20,975 From 121 to 180 days 50,728 18,945 From 181 days 44,554 8,529 6,488,192 9,607,012 |
Schedule of rollforward of expected credit losses, trade accounts receivable | June 30, December 31, 2023 2022 Opening balance (21,109) (34,763) Additions (10,464) (5,228) Reversals 177 3,576 Write-offs 1,536 12,355 Exchange rate variations 67 2,951 Closing balance (29,793) (21,109) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INVENTORIES | |
Schedule of inventories | June 30, December 31, 2023 2022 Finished goods Pulp Domestic (Brazil) 501,037 616,415 Foreign 1,711,100 1,426,064 Paper Domestic (Brazil) 535,026 358,973 Foreign 245,267 192,671 Work in process 119,644 93,964 Raw materials Wood 1,586,058 1,480,616 Operating supplies and packaging 745,413 716,089 Spare parts and other 978,951 843,469 6,422,496 5,728,261 |
Schedule of changes in expected losses | June 30, December 31, 2023 2022 Opening balance (105,989) (91,258) Additions (23,859) (89,552) Reversals 24,713 33,492 Write-offs 17,893 41,329 Closing balance (87,242) (105,989) |
RECOVERABLE TAXES (Tables)
RECOVERABLE TAXES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
RECOVERABLE TAXES | |
Schedule of recoverable taxes | June 30, December 31, 2023 2022 IRPJ/CSLL – prepayments and withheld taxes 328,747 179,812 PIS/COFINS – on acquisitions of property, plant and equipment (1) 87,955 89,334 PIS/COFINS – operations 615,322 523,970 PIS/COFINS – exclusions from ICMS (2) 458,319 570,945 ICMS – on acquisitions of property, plant and equipment (3) 358,999 167,286 ICMS – operations (4) 1,446,388 1,423,375 Reintegra program (5) 76,549 65,971 Other taxes and contributions 39,690 39,057 Provision for loss on ICMS credits (6) (1,306,768) (1,103,807) 2,105,201 1,955,943 Current 747,847 549,580 Non-current 1,357,354 1,406,363 1) Social Integration Program (“PIS”) and Social Security Funding Contribution (“COFINS”): Credits whose realization is based on the years of depreciation of the corresponding asset. 2) The Company and its subsidiaries filed lawsuits over the years seeking the exclusion of ICMS from the PIS and COFINS contribution tax basis, in relation to certain transactions during various periods from March 1992, details on the initial recognition were disclosed in the financial statements of December 31, 2021. 3) Tax on Sales and Services (“ICMS”): Credits from the acquisition of property, plant and equipment are recovered on a straight-line basis over a four-year period, from the acquisition date, in accordance with the relevant regulation, the ICMS Control on Property, Plant and Equipment (“CIAP”). 4) ICMS credits accrued due to the volume of exports and credit generated from product import transactions: Credits are concentrated in the States of Espírito Santo, Maranhão, Mato Grosso do Sul e São Paulo, where the Company realizes the credits through the sale of credits to third parties, after approval from the State Ministry of Finance of each State. Credits are also being realized through the consumption of consumer goods (tissue) transactions in the domestic market. 5) Special Regime of Tax Refunds for Export Companies (“Reintegra”): Reintegra is a program that aims to refund the residual costs of taxes paid throughout the export chain to taxpayers, to make them more competitive in foreign markets. 6) Related to provisions for ICMS credit balances that are not probable to be recovered. |
Schedule of changes in provision for loss | ICMS June 30, December 31, 2023 2022 Opening balance (1,103,807) (1,064,268) Addition (1) (217,782) (221,903) Write-off 18,464 Reversal 14,821 163,900 Closing balance (1,306,768) (1,103,807) 1) Refers, substantially, to the accumulated ICMS credits of the state of Mato Grosso do Sul, arising from the construction operations of the Cerrado Project, and of the state of Espirito Santo, of the accumulated credits due to the volume of exports. |
ADVANCES TO SUPPLIERS (Tables)
ADVANCES TO SUPPLIERS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
ADVANCES TO SUPPLIERS | |
Schedule of advances to suppliers | June 30, December 31, 2023 2022 Forestry development program and partnerships 1,981,199 1,592,132 Advance to suppliers - others 103,181 108,146 2,084,380 1,700,278 Current 103,181 108,146 Non-current 1,981,199 1,592,132 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
RELATED PARTIES | |
Schedule of related party transactions | Assets Liabilities Sales (purchases), net June 30, December 31, June 30, December 31, June 30, June 30, 2023 2022 2023 2022 2023 2022 Transactions with controlling shareholders Suzano Holding 5 22 30 5 22 30 Transactions with companies of the Suzano Group and other related parties Management (expect compensation - Note 11.2) (4) (5) (810) (15) Bexma Participações Ltda 1 4 4 Bizma Investimentos Ltda 1 3 4 Civelec Participações Ltda 4,575 4,825 Fundação Arymax 1 1 Ibema Companhia Brasileira de Papel (1) 73,564 106,940 (12,033) (3,705) 108,105 90,916 Instituto Ecofuturo - Futuro para o Desenvolvimento Sustentável 3 (1,124) (66) (3,959) (2,267) IPLF Holding S.A. 23 2 2 Nemonorte Imóveis e Participações Ltda (88) (105) 78,139 106,968 (13,161) (3,776) 108,083 88,540 78,139 106,973 (13,161) (3,776) 108,105 88,570 Assets Trade accounts receivable (Note 7) 73,564 99,608 Dividends receivable 7,334 Other assets 4,575 31 Liabilities Trade accounts payable (Note 17) (13,161) (3,776) 78,139 106,973 (13,161) (3,776) 1) Refers mainly to the sale of pulp. |
Schedule of management compensation | June 30, June 30, 2023 2022 Short-term benefits Salary or compensation 23,822 24,741 Direct and indirect benefits 1,194 464 Bonus 4,724 3,516 29,740 28,721 Long-term benefits Share-based compensation plan 12,407 25,726 12,407 25,726 42,147 54,447 |
INCOME AND SOCIAL CONTRIBUTIO_2
INCOME AND SOCIAL CONTRIBUTION TAXES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INCOME AND SOCIAL CONTRIBUTION TAXES | |
Schedule of deferred income and social contribution taxes | June 30, December 31, 2023 2022 Tax loss 1,203,724 1,207,096 Negative tax basis of social contribution 453,538 445,250 Assets - temporary differences Provision for judicial liabilities 292,460 268,596 Operating provisions and other losses 1,030,664 999,028 Exchange rate variations 2,369,677 4,297,503 Amortization of fair value adjustments arising from business combinations 665,983 680,142 Unrealized profit on inventories 164,996 363,052 Leases 328,682 364,838 6,509,724 8,625,505 Liabilities - temporary differences Goodwill - tax benefit on unamortized goodwill 1,161,410 1,023,103 Property, plant and equipment - deemed cost 1,174,570 1,217,349 Depreciation accelerated for tax-incentive reason (1) 834,389 869,997 Capitalized loan costs 404,955 210,834 Fair value of biological assets 1,027,008 703,274 Deferred taxes, net of fair value adjustments 384,016 398,950 Tax credits - gains from tax lawsuit (exclusion of ICMS from the PIS and COFINS basis) 155,828 194,121 Derivatives gains (“MtM”) 1,108,764 9,164 Provision of deferred taxes on results of subsidiaries abroad 98,984 Other temporary differences 23,539 13,416 6,373,463 4,640,208 Non-current assets 147,638 3,986,415 Non-current liabilities 11,377 1,118 1) |
Schedule of accumulated tax losses and social contribution tax loss carryforwards | June 30, December 31, 2023 2022 Tax loss carried forward 4,814,896 4,828,384 Negative tax basis of social contribution carried forward 5,039,311 4,947,222 |
Schedule of changes in net balance of deferred income tax | June 30, December 31, 2023 2022 Opening balance 3,985,297 8,729,929 Tax loss (3,372) 50,220 Negative tax basis of social contribution 8,288 34,176 Provision for judicial liabilities 23,864 19,251 Operating provisions and other losses 31,636 33,898 Exchange rate variation (1,927,826) (2,257,699) Derivative gains (“MtM”) (1,099,600) (2,202,857) Amortization of fair value adjustments arising from business combinations 775 8,970 Unrealized profit on inventories (198,056) 64,164 Leases (36,156) (8,534) Goodwill - tax benefit on unamortized goodwill (138,307) (276,614) Property, plant and equipment - deemed cost 42,779 99,510 Depreciation accelerated for tax-incentive reason 35,608 74,952 Capitalized loan costs (194,121) (111,435) Fair value of biological assets (323,734) (272,308) Deferred taxes on the results of subsidiaries abroad (98,984) Credits on exclusion of ICMS from the PIS/COFINS tax base 38,293 3,906 Other temporary differences (10,123) (4,232) Closing balance 136,261 3,985,297 |
Schedule of changes in the effects of income tax and social contribution on profit or loss | June 30, June 30, 2023 2022 Net income (loss) before taxes 14,380,751 13,937,137 Income tax and social contribution benefit (expense) at the statutory nominal rate of 34% (4,889,455) (4,738,627) Tax effect on permanent differences Taxation (difference) on profits of subsidiaries in Brazil and abroad (1) 815,768 1,473,037 Equity method 143 3,164 Thin capitalization (2) (27,114) (198,725) Credit related to the Reintegra Program 3,694 3,677 Director bonuses (3,481) (11,176) Tax incentives 41,769 22,464 Donations/Fines – Other (1,659) (3,052) (4,060,335) (3,449,238) Income tax Current (193,265) (116,819) Deferred (2,830,430) (2,446,211) (3,023,695) (2,563,030) Social Contribution Current (17,738) (5,818) Deferred (1,018,902) (880,390) (1,036,640) (886,208) Income and social contribution benefits (expenses) for the period (4,060,335) (3,449,238) Effective rate of income and social contribution tax expenses 28.23% 24.75% 1) The difference in the taxation of subsidiaries is substantially due to the differences between the nominal tax rates in Brazil and those of subsidiaries located abroad. 2) The Brazilian thin capitalization rules establish that interest paid or credited by a Brazilian entity to a related party abroad may only be deducted for income tax and social contribution purposes if the interest expense is viewed as necessary for the activities of the local entity, and when certain limits and requirements are met. On June 30, 2023 and June 30, 2022, the Company did not meet all of the limits and requirements, and therefore the expense is not deductible for the period. |
Schedule of tax incentives | The Company benefits from a tax incentive for partial reduction of the income tax obtained from operations carried out in areas under the jurisdiction of the Northeast Development Superintendence (“SUDENE”) and the Superintendence of Amazon Development (“SUDAM”). The IRPJ reduction incentive is calculated based on the activity profits (exploitation profits) and considers the allocation of the operating profit based on the incentive production levels for each product. Area/Regions Company Maturity Northeast Development Superintendence (“SUDENE”) Mucuri (BA) - Line 1 Suzano 2024 Mucuri (BA) - Line 2 Suzano 2027 Eunápolis (BA) Veracel 2025 Imperatriz (MA) Suzano 2024 Aracruz (ES) Portocel 2030 Aracruz (ES) Suzano 2031 Superintendence of Amazon Development (“SUDAM”) Belém (PA) Suzano 2025 |
BIOLOGICAL ASSETS (Tables)
BIOLOGICAL ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
BIOLOGICAL ASSETS. | |
Schedule of changes in balances of biological assets | The roll-forward of biological assets is as set forth below: June 30, December 31, 2023 2022 Opening balance 14,632,186 12,248,732 Additions 2,899,032 4,957,380 Depletions (1,805,371) (3,665,057) Gain on fair value adjustments 1,256,315 1,199,759 Disposals (36,278) (82,331) Other write-offs (31,764) (26,297) Closing balance 16,914,120 14,632,186 |
Schedule of assumptions used in calculation of fair value of biological assets | The table below discloses the measurement of the premises adopted: June 30, December 31, 2023 2022 Planted useful area (hectare) 1,105,168 1,097,081 Mature assets 181,573 134,752 Immature assets 923,595 962,329 Average annual growth (IMA) - m 3 /hectare /year 37.61 37.07 Average gross sale price of eucalyptus - R$/m 3 97.34 90.16 Discount rate - % (post-tax) 8.8% 9.1% |
Schedule of fair value adjustment | The fair value adjustment justified by the combined variations of the indicators mentioned above resulted in a positive variation of R $1,256,315 recognized in other operating income (expenses), net (Note 30). June 30, December 31, 2023 2022 Physical changes 432,212 (37,088) Price 824,103 1,236,847 1,256,315 1,199,759 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INVESTMENTS | |
Schedule of investments by type | June 30, December 31, 2023 2022 Investments in associates and joint ventures 383,500 354,200 Goodwill 233,228 233,399 Other investments evaluated at fair value through other comprehensive income - Celluforce 23,541 24,917 640,269 612,516 |
Schedule of investments in associates and joint ventures | Information of joint ventures as at Company Participation June 30, In the income(expenses) for 2023 Carrying amount the period Income (expenses) Participation of the equity June 30, December 31, June 30, June 30, Equity period (%) 2023 2022 2023 2022 Associate Ensyn Corporation 2,684 (16,508) 26.07% 700 1,250 (4,304) 5,597 Spinnova Plc (1) 526,204 19.03% 100,137 113,079 (6,706) (4,939) 100,837 114,329 (11,010) 658 Joint ventures Domestic (Brazil) Biomas 28,962 (1,051) 16.66% 4,825 (175) Ibema Companhia Brasileira de Papel 366,704 76,069 49.90% 182,985 158,996 21,524 8,764 Foreign F&E Technologies LLC 9,928 50.00% 4,964 5,230 Woodspin Oy 179,778 (19,376) 50.00% 89,889 75,645 (9,688) (1) 282,663 239,871 11,661 8,763 Other movements 23,541 24,917 (232) (114) 23,541 24,917 (232) (114) 407,041 379,117 419 9,307 1) The average share price quoted on the Nasdaq First North Growth Market (NFNGM) was EUR 4.91 (four euros and ninety-one cents) on June 30, 2023. |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
PROPERTY, PLANT AND EQUIPMENT | |
Schedule of property, plant and equipment | Machinery, equipment and Work in Land Buildings facilities progress Other (1) Total Average rate % 3.52 6.24 17.41 Accumulated cost 9,791,102 9,415,818 43,949,632 1,603,915 1,104,601 65,865,068 Accumulated depreciation (3,577,097) (23,344,836) (773,432) (27,695,365) Balance as of December 31, 2021 9,791,102 5,838,721 20,604,796 1,603,915 331,169 38,169,703 Additions 5,089 516 381,741 11,220,806 15,832 11,623,984 Additions of merged companies 3,829,344 3,829,344 Write-offs (69,773) (10,613) (58,435) (3,384) (142,205) Depreciation (310,429) (2,367,163) (124,464) (2,802,056) Transfers 930,646 246,782 1,057,714 (2,451,570) 194,292 (22,136) Accumulated cost 14,486,408 9,644,875 45,160,365 10,373,151 1,281,328 80,946,127 Accumulated depreciation (3,879,898) (25,541,712) (867,883) (30,289,493) Balance as of December 31, 2022 14,486,408 5,764,977 19,618,653 10,373,151 413,445 50,656,634 Additions (2) 11,504 233,146 6,159,347 4,567 6,408,564 Amounts from the acquisition of MMC Brasil (3) 4,572 110,965 451,969 8,306 13,353 589,165 Write-offs (23,121) (30,925) (31,743) (57,907) (143,696) Depreciation (152,674) (1,236,907) (65,881) (1,455,462) Transfers 255,036 158,860 1,051,866 (1,609,709) 117,050 (26,897) Accumulated cost 14,734,399 9,852,001 46,791,386 14,931,095 1,347,625 87,656,506 Accumulated depreciation (4,000,798) (26,704,402) (922,998) (31,628,198) Balance as of June 30, 2023 14,734,399 5,851,203 20,086,984 14,931,095 424,627 56,028,308 1) Includes vehicles, furniture and utensils and computer equipment. 2) The addition of work in progress refers, mainly to the Cerrado Project, of which R $649,116 is a non-cash effect in the period. 3) On June 1, 2023, the Company completed the acquisition of MMC Brasil Indústria e Comércio Ltda.(Note 1.2.3.) |
INTANGIBLE (Tables)
INTANGIBLE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INTANGIBLE | |
Schedule of goodwill and intangible assets with indefinite useful life | June 30, December 31, 2023 2022 Goodwill - Facepa 119,332 119,332 Goodwill - Fibria 7,897,051 7,897,051 Goodwill - MMC Brasil (1) 182,798 Other (2) 4,018 3,405 8,203,199 8,019,788 1) Refers to the goodwill of the MMC Brasil business combination, whose allocation of the purchase price is disclosed in note 1.2.3. 2) Refers to other intangible assets with indefinite useful lives such as servitude of passage and electricity. |
Schedule of intangible assets with determined useful life | June 30, December 31, 2023 2022 Opening balance 7,173,183 8,014,740 Additions 197 90,499 Fair value adjustment MMC Brasil (1) 189,655 Write-offs (51) Amortization (489,650) (966,796) Transfers and others 35,563 34,791 Closing balance 6,908,948 7,173,183 Represented by Average rate % Non-competition agreements 5.00 4,971 5,128 Port concessions 4.30 547,242 554,832 Lease agreements 16.90 10,624 14,374 Supplier agreements 12.90 48,146 55,554 Port service contracts 4.20 564,501 579,289 Cultivars 14.30 50,980 61,176 Trademarks and patents (1) 9.05 199,024 10,935 Customer portfolio 9.10 5,336,369 5,746,860 Supplier agreements 17.60 16,142 21,427 Software 20.00 122,013 113,946 Other 5.75 8,936 9,662 6,908,948 7,173,183 Cost 12,229,915 12,004,503 Amortization (5,320,967) (4,831,320) Closing balance 6,908,948 7,173,183 1) |
TRADE ACCOUNTS PAYABLE (Tables)
TRADE ACCOUNTS PAYABLE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
TRADE ACCOUNTS PAYABLE | |
Schedule of trade accounts payable | June 30, December 31, 2023 2022 In local currency Related party (Note 11.1) (1) 13,161 3,776 Third party (2)(3) 4,305,857 4,171,988 In foreign currency Third party (3) 2,028,936 2,030,806 6,347,954 6,206,570 1) The balance refers mainly to transactions with Ibema Companhia Brasileira de Papel. 2) Within the balance of suppliers, there are values under supplier finance arrangement that were subject to anticipation with financial institutions at the exclusive option of certain suppliers, without changing the originally defined purchase conditions (payment terms and negotiated prices). The balance related to such operations on June 30, 2023 was R $243,229 (R $416,643 at December 31, 2022). 3) Within the balance of suppliers, the following balances refer to the Cerrado Project, R $988,892 (R $625,645 on December 31, 2022) in local currency and R $1,656,702 (R $1,370,833 on December 31, 2022) in foreign currency. |
LOANS, FINANCING AND DEBENTUR_2
LOANS, FINANCING AND DEBENTURES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LOANS, FINANCING AND DEBENTURES | |
Schedule of loans, financing and debentures by type | Current Non-current Total Average annual interest rate - June 30, December 31, June 30, December 31, June 30, December 31, Type Interest rate % 2023 2022 2023 2022 2023 2022 In foreign currency BNDES UMBNDES 5.4 4,174 11,207 4,174 11,207 Bonds Fixed 5.0 832,242 907,059 39,928,218 43,218,286 40,760,460 44,125,345 Export credits (“export prepayments”) LIBOR/Fixed 6.2 1,719,005 156,156 14,597,783 16,779,064 16,316,788 16,935,220 Assets financing SOFR 3.6 44,320 26,755 177,526 113,217 221,846 139,972 IFC - International Finance Corporation SOFR 5.9 1,845 2,850,036 2,851,881 Others 10,647 5,980 10,647 5,980 2,612,233 1,107,157 57,553,563 60,110,567 60,165,796 61,217,724 In local currency BNDES TJLP 8.4 55,034 69,495 221,302 246,004 276,336 315,499 BNDES TLP 10.7 53,908 41,640 2,346,197 1,775,991 2,400,105 1,817,631 BNDES Fixed 4.5 8,563 18,666 2,004 4,011 10,567 22,677 BNDES SELIC 13.3 67,951 67,115 836,034 814,320 903,985 881,435 CRA (“Agribusiness Receivables Certificates”) CDI/IPCA 9.6 1,269,990 1,829,966 1,269,990 1,829,966 NCE (“Export credit notes”) CDI 11.0 78,548 76,463 1,378,261 1,277,616 1,456,809 1,354,079 NCR (“Rural producer certificates”) CDI 10.7 12,981 13,144 274,265 274,127 287,246 287,271 Export credits (“export prepayments”) Fixed 8.1 1,339,409 77,694 1,315,813 1,339,409 1,393,507 Debentures CDI 11.7 33,926 33,689 6,388,162 5,421,113 6,422,088 5,454,802 2,920,310 2,227,872 11,446,225 11,128,995 14,366,535 13,356,867 5,532,543 3,335,029 68,999,788 71,239,562 74,532,331 74,574,591 Interest on financing 1,141,837 1,238,623 1,141,837 1,238,623 Non-current funding 4,390,706 2,096,406 68,999,788 71,239,562 73,390,494 73,335,968 5,532,543 3,335,029 68,999,788 71,239,562 74,532,331 74,574,591 |
Schedule of non-current portion of loans, financing and debentures by maturity | 2029 2024 2025 2026 2027 2028 onwards Total In foreign currency Bonds 5,970 1,640,973 2,495,454 3,350,524 2,406,200 30,029,097 39,928,218 Export credits (“export prepayments”) 894,202 5,254,429 4,656,085 3,793,067 14,597,783 Assets financing 22,774 46,987 48,860 48,123 10,782 177,526 IFC - International Finance Corporation 187,413 883,520 1,779,103 2,850,036 922,946 6,942,389 7,200,399 7,379,127 3,300,502 31,808,200 57,553,563 In local currency BNDES – TJLP 22,052 98,809 85,571 7,090 3,590 4,190 221,302 BNDES – TLP 21,408 60,963 80,573 141,272 138,439 1,903,542 2,346,197 BNDES – Fixed 2,004 2,004 BNDES – SELIC 28,720 217,090 217,135 28,057 28,103 316,929 836,034 NCE (“Export credit notes”) 640,800 637,460 25,000 25,000 50,001 1,378,261 NCR (“Rural producer certificates”) 137,500 136,765 274,265 Debentures 2,340,550 2,333,776 748,306 965,530 6,388,162 74,184 3,495,712 3,491,280 201,419 943,438 3,240,192 11,446,225 997,130 10,438,101 10,691,679 7,580,546 4,243,940 35,048,392 68,999,788 |
Summary of changes in loans, financing and debentures | June 30, December 31, 2023 2022 Opening balance 74,574,591 79,628,629 Fundraising, net of issuance costs 5,276,816 1,335,715 Interest accrued 2,309,587 4,007,737 Monetary and exchange rate variations, net (4,543,048) (3,949,020) Settlement of principal (765,533) (2,517,934) Settlement of interest (2,352,484) (4,019,072) Amortization of fundraising costs 32,402 69,649 Others (fair value adjustments to on business combinations) 18,887 Closing balance 74,532,331 74,574,591 |
Schedule of loans and financing by currency | June 30, December 31, 2023 2022 Brazilian Reais 14,355,349 13,347,244 U.S. Dollars 60,172,808 61,216,140 Currency basket 4,174 11,207 74,532,331 74,574,591 |
Schedule of fundraising costs and premiums of securities | The fundraising costs are amortized based on the terms of agreements and the effective interest rate. Balance to be amortized June 30, December 31, Type Cost Amortization 2023 2022 Bonds 434,970 255,182 179,788 210,822 CRA and NCE 125,222 119,769 5,453 10,838 Export credits (“export prepayments”) 191,710 132,897 58,813 75,520 Debentures 59,216 16,279 42,937 9,984 BNDES 63,588 52,692 10,896 12,016 IFC - International Finance Corporation 41,943 459 41,484 Others 18,147 17,412 735 873 934,796 594,690 340,106 320,053 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LEASES | |
Schedule of right of use assets | The balances rolled forward are set out below: Machinery and Ships and Lands equipment Buildings boats Vehicles Total Balance as at December 31, 2021 2,868,411 86,464 88,410 1,748,008 2,730 4,794,023 Additions/updates 849,996 66,821 61,647 4,216 982,680 Depreciation (1) (360,225) (40,732) (64,301) (124,890) (2,303) (592,451) Write-offs (2) (75,026) (75,026) Balance as at December 31, 2022 3,283,156 112,553 85,756 1,623,118 4,643 5,109,226 Additions/updates 290,722 85,493 78,547 490 455,252 Depreciation (1) (188,802) (51,778) (29,419) (62,445) (1,191) (333,635) Write-offs (2) (54) (54) Balance as at June 30, 2023 3,385,022 146,268 134,884 1,560,673 3,942 5,230,789 1) The amount of depreciation related to land is substantially reclassified to biological assets to make up the formation costs. 2) Write-off due to cancellation of contracts. |
Schedule of present value of lease liabilities | The balance of lease payables on June 30, 2023, measured at present value and discounted at the respective discount rates are set forth below: Average rate - Present value of Nature of agreement % p.a. (1) Maturity (2) liabilities Lands and farms 12.52 April/2050 3,673,964 Machinery and equipment 11.43 April/2035 217,381 Buildings 10.84 September/2031 122,556 Ships and boats 11.39 February/2039 2,178,580 Vehicles 10.83 July/2026 3,503 6,195,984 1) To determine the discount rates, quotes were obtained from financial institutions for agreements with characteristics and average terms similar to the lease agreements. 2) Refers to the original maturities of the agreements and, therefore, does not consider eventual renewal clauses. |
Summary of changes in lease liabilities | The balances rolled forward are set out below: June 30, December 31, 2023 2022 Opening balance 6,182,530 5,893,194 Additions 455,252 982,680 Write-offs (2) (54) (75,026) Payments (577,132) (1,044,119) Accrual of financial charges (1) 327,374 612,042 Exchange rate variations (191,986) (186,241) Closing balance 6,195,984 6,182,530 Current 710,906 672,174 Non-current 5,485,078 5,510,356 1) On June 30, 2023, the amount of R$ 104,137 related to interest expenses on leased lands was capitalized to biological assets to represent the formation cost (R $178,429 as of December 31, 2022). 2) Write-off due to cancellation of contracts. |
Schedule of expenses recognised in profit or loss | The amounts recognized are set out below: June 30, June 30, 2023 2022 Expenses relating to short-term assets 5,559 1,038 Expenses relating to low-value assets 946 571 6,505 1,609 |
PROVISION FOR JUDICIAL LIABIL_2
PROVISION FOR JUDICIAL LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
PROVISION FOR JUDICIAL LIABILITIES | |
Rollforward and changes in the provisions according to the nature of the proceedings for probable losses, net of judicial deposits | June 30, 2023 Tax and Civil, Contingent social environment liabilities security Labor and real estate assumed (1) (2) Total Provision balance at the beginning of the period 419,915 255,805 118,729 2,645,705 3,440,154 Payments (1,192) (22,839) (868) (24,899) Reversal (4,968) (28,652) (7,507) (88,612) (129,739) Additions 29,147 62,979 11,155 103,281 Monetary adjustment 13,158 10,700 8,889 32,747 Provision balance 456,060 277,993 130,398 2,557,093 3,421,544 Judicial deposits (145,567) (77,101) (23,796) (246,464) Provision balance at the end of the period 310,493 200,892 106,602 2,557,093 3,175,080 1) Amounts arising from tax-related lawsuits with a possible or remote probability of loss in the amount of R $2,410,363 and civil lawsuits in the amount of R $146,730 , measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3- Business Combinations. 2) Reversal due to a change in likelihood and/or due to settlement. December 31, 2022 Tax and Civil, Contingent social environment liabilities security Labor and real estate assumed (1) (2) Total Provision balance at the beginning of the year 477,096 178,925 82,592 2,694,541 3,433,154 Payments (14,948) (44,516) (20,497) (79,961) Reversal (71,446) (53,211) (15,577) (48,836) (189,070) Additions 14,036 157,562 56,834 228,432 Monetary adjustment 15,177 17,045 15,377 47,599 Provision balance 419,915 255,805 118,729 2,645,705 3,440,154 Judicial deposits (149,951) (12,270) (21,623) (183,844) Provision balance at the end of the year 269,964 243,535 97,106 2,645,705 3,256,310 1) Amounts arising from tax-related lawsuits with a possible or remote probability of loss in the amount of R$ 2,448,564 and civil lawsuits in the amount of R$ 197,141 , measured and recorded at the estimated fair value resulting from the business combination with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combinations. 2) Reversal due to a change in likelihood and/or due to settlement. |
Schedule of possible losses for which no provision has been recorded | The Company is involved in tax, civil and labor lawsuits, whose losses have been assessed as possible by Management, supported by legal counsel, and therefore no provision was recorded: June 30, December 31, 2023 2022 Taxes and social security (1) 9,211,342 8,201,246 Labor 224,181 321,428 Civil and environmental (1) 4,981,793 4,414,877 14,417,316 12,937,551 1) The amounts above do not include the fair value adjustments allocated to possible loss risk contingencies representing R $2,537,335 (R $2,614,518 as of December 31, 2022), which were recorded at fair value resulting from business combinations with Fibria, in accordance with paragraph 23 of IFRS 3 – Business Combinations, as presented in Note 20.1.1. above. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
EMPLOYEE BENEFIT PLANS | |
Schedule of changes in actuarial liabilities | June 30, December 31, 2023 2022 Opening balance 691,424 675,158 Interest on actuarial liabilities 34,615 59,258 Actuarial loss 12,231 Exchange rate variations (577) Amount arising from the acquisition of MMC Brasil 1,457 Benefits paid (25,563) (54,646) Closing balance 701,933 691,424 |
SHARE-BASED COMPENSATION PLAN (
SHARE-BASED COMPENSATION PLAN (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SHARE-BASED COMPENSATION PLAN | |
Schedule of changes in long term compensation plans | The roll-forward arrangements are set out below: Number of shares June 30, December 31, 2023 2022 Opening balance 7,583,185 5,415,754 Granted during of the period 3,318,892 4,152,200 Exercised (1) (244,464) (1,474,506) Exercised due to resignation (1) (24,743) (175,552) Abandoned/cancelled due to resignation (225,126) (334,711) Closing balance 10,407,744 7,583,185 1) The average price of the share options exercised and exercised due to termination of employment on June 30, 2023 was R$ 47.78 (forty seven reais and seventy eight cents) ((R $48.79 (forty eight reais and seventy nine cents) as at December 31, 2022). |
Summary of position for restricted share plan | The position is set forth below: Date of execution of Price on Restricted year for Program the contract Grant date grant date Shares Granted transfer of shares 2020 01/02/2020 01/02/2021 R$ 51.70 111,685 01/02/2024 2021 01/02/2021 01/02/2022 R$ 53.81 113,161 01/02/2025 2022 01/02/2022 01/02/2023 R$ 52.00 101,164 01/02/2026 2023 01/02/2023 01/02/2023 R$ 49.58 161,355 01/02/2026 487,365 |
Schedule of amounts corresponding to services received and recognized | The amounts corresponding to the services received and recognized are set forth below: Liabilities and Equity Statement of income and Equity June 30, December 31, June 30, June 30, 2023 2022 2023 2022 Non-current liabilities Provision for phantom stock plan 183,589 162,117 (32,731) (31,389) Equity Stock options granted 22,584 20,790 (4,159) (2,668) Shares granted (2,365) 2,365 22,584 18,425 (4,159) (303) (36,890) (31,692) |
LIABILITIES FOR ASSETS ACQUIS_2
LIABILITIES FOR ASSETS ACQUISITIONS AND ASSOCIATES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | |
Schedule of liabilities for assets acquisitions | June 30, December 31, 2023 2022 Assets acquisitions Vitex/Parkia (1) 1,758,365 1,758,365 Business combinations Facepa (2) 25,884 42,655 Vale Florestar Fundo de Investimento em Participações (“VFFIP”) (3) 254,980 261,302 280,864 303,957 280,864 2,062,322 Current 101,207 1,856,763 Non-current 179,657 205,559 1) On June 22, 2022, the Company acquired all the shares of the Parkia structure companies, in the amount of US $667,000 (equivalent to R $3,444,255 on the date of execution of the agreement), upon the payment of US $330,000 (equivalent to R $1,704,054 on the date of the transaction), on June 22, 2023, the payment of the second installment in the amount of US $337,000 (equivalent to R $1,615,140 on the transaction date) was made. 2) Acquired in March 2018, for the amount of R$ 307,876 , upon the payment of R$ 267,876 , with the remainder updated at the IPCA, adjusted for possible losses incurred up to the payment date, with maturity in March 2028. 3) On August 2014, the Company acquired Vale Florestar S.A. through VFFIP, for a total amount of R$ 528,941 upon the payment of R$ 44,998 , and the remainder with maturity up to August 2029. The annual settlements, carried out in the month of August, are subject to interest and updated by the variations of the US Dollar exchange rate, and partially updated by the IPCA. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SHAREHOLDERS' EQUITY | |
Schedule of share capital | June 30, December 31, 2023 2022 Quantity (%) Quantity (%) Controlling Shareholders Suzano Holding S.A. 367,612,329 27.76 367,612,329 27.01 Controller 196,064,797 14.81 195,064,797 14.33 Managements and related persons 34,097,609 2.57 34,102,309 2.51 Alden Fundo de Investimento em Ações 26,154,744 1.98 26,154,744 1.91 623,929,479 47.12 622,934,179 45.76 Treasury (Note 24.2) 32,466,900 2.45 51,911,569 3.81 Other shareholders 667,721,236 50.43 686,417,836 50.43 1,324,117,615 100.00 1,361,263,584 100.00 |
Schedule of treasury shares | Average cost Historical Market Quantity per share value value Balances at December 31, 2021 12,042,004 18.13 218,265 656,530 Realization in the restricted stock plan 130,435 18.13 2,365 8,156 Repurchase 40,000,000 47.61 1,904,424 1,904,424 Balances at December 31, 2022 51,911,569 40.84 2,120,324 2,504,214 Repurchase 17,701,300 43.98 778,500 778,500 Canceled 37,145,969 40.84 1,517,224 1,570,532 Balances at June 30, 2023 32,466,900 42.55 1,381,600 1,435,686 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
Schedule of basic earnings (losses) per share | June 30, June 30, 2023 2022 Resulted of the period attributable to controlling shareholders 10,310,498 10,480,342 Weighted average number of shares in the period – in thousands 1,336,021 1,361,264 Weighted average treasury shares – in thousands (26,791) (14,088) Weighted average number of outstanding shares – in thousands 1,309,230 1,347,176 Basic earnings (loss) per common share - R$ 7.87524 7.77949 |
Schedule of diluted earnings (losses) per share | June 30, June 30, 2023 2022 Resulted of the period attributed to controlling shareholders 10,310,498 10,480,342 Weighted average number of shares during the period (except treasury shares) – in thousands 1,309,230 1,347,176 Average number of potential shares (stock options) – in thousands 487 215 Weighted average number of shares (diluted) – in thousands 1,309,717 1,347,391 Diluted earnings (loss) per common share - R$ 7.87231 7.77825 |
NET FINANCIAL RESULT (Tables)
NET FINANCIAL RESULT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
NET FINANCIAL RESULT | |
Schedule of net financial result | June 30, June 30, 2023 2022 Financial expenses Interest on loans, financing and debentures (1) (1,797,937) (1,742,976) Amortization of transaction costs (2) (32,421) (36,838) Interest expenses on lease liabilities (3) (223,237) (210,597) Amortization of fair value adjustments (9,452) Other (254,471) (183,660) (2,308,066) (2,183,523) Financial income Cash and cash equivalents and marketable securities 683,608 303,822 Other 106,290 48,745 789,898 352,567 Results from derivative financial instruments Income 6,758,955 8,653,252 Expenses (1,859,936) (4,032,366) 4,899,019 4,620,886 Monetary and exchange rate variations, net Exchange rate variations on loans, financing and debentures 4,543,048 3,812,954 Leases 191,986 176,291 Other assets and liabilities (4) (1,110,099) (818,556) 3,624,935 3,170,689 Net financial result 7,005,786 5,960,619 1) Excludes R$ 511,650 arising from capitalized loan costs, substantially related to property, plant and equipment in progress of the Cerrado Project for the six-month period ended June 30, 2023 (R$ 108,972 as at June 30, 2022). 2) Includes expense of R$ 19 arising from transaction costs on loans and financing that were recognized directly in the statement of income (R$ 39 as at June 30, 2022). 3) Includes R$ 104,137 referring to the reclassification to the biological assets item for the composition of the formation cost (R$ 84,470 as of June 30, 2022). 4) Includes effects of exchange rate variations of trade accounts receivable, trade accounts payable, cash and cash equivalents, marketable securities and others. |
NET SALES (Tables)
NET SALES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
NET SALES | |
Schedule of reconciliation from gross sales to net sales revenue | June 30, June 30, 2023 2022 Gross sales 24,552,121 25,466,749 Sales deductions Returns and cancellations (65,560) (42,388) Discounts and rebates (3,019,895) (3,187,446) 21,466,666 22,236,915 Taxes on sales (1,030,649) (974,425) Net sales 20,436,017 21,262,490 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
SEGMENT INFORMATION | |
Schedule of operating segments | June 30, 2023 Pulp Paper Total Net sales 16,302,347 4,133,670 20,436,017 Domestic market (Brazil) 1,249,493 2,971,910 4,221,403 Foreign markets 15,052,854 1,161,760 16,214,614 EBITDA 9,155,697 1,812,784 10,968,481 Depreciation, depletion and amortization (3,593,516) Operating profit before net financial income (“EBIT”) (1) 7,374,965 EBITDA margin (%) 56.16% 43.85% 53.67% 1) (“Earnings before interest and tax”). June 30, 2022 Pulp Paper Total Net sales 17,496,421 3,766,069 21,262,490 Domestic market (Brazil) 1,246,965 2,589,671 3,836,636 Foreign market 16,249,456 1,176,398 17,425,854 EBITDA 10,168,584 1,402,897 11,571,481 Depreciation, depletion and amortization (3,594,963) Operating profit before net financial income (“EBIT”) (1) 7,976,518 EBITDA margin (%) 58.12% 37.25% 54.42% 1) (“Earnings before interest and tax”). |
Schedule of net sales by product | June 30, June 30, Products 2023 2022 Market pulp (1) 16,302,347 17,496,421 Printing and writing paper (2) 3,384,698 3,089,666 Paperboard 708,576 644,809 Other 40,396 31,594 20,436,017 21,262,490 1) Net sales of fluff pulp represent approximately 0.8% of total net sales, and therefore were included in market pulp net sales. ( 0.8% as at June 30, 2022). 2) Net sales of tissue represent approximately 3.1% of total net sales, and therefore were included in printing and writing paper net sales. ( 2.5% as at June 30, 2022). |
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: June 30, December 31, 2023 2022 Pulp 7,897,051 7,897,051 Paper (1) 302,130 119,332 8,199,181 8,016,383 1) On June 1, 2023, the Company completed the acquisition of MMC Brasil.(Note 1.2.3.) |
INCOME (EXPENSES) BY NATURE (Ta
INCOME (EXPENSES) BY NATURE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INCOME (EXPENSES) BY NATURE | |
Schedule of results by nature | June 30, June 30, 2023 2022 Cost of sales Personnel expenses (711,401) (652,396) Costs of raw materials, materials and services (5,336,373) (5,351,098) Logistics costs (2,129,684) (2,176,264) Depreciation, depletion and amortization (3,144,107) (3,088,132) Other (1) (875,290) (287,875) (12,196,855) (11,555,765) Selling expenses Personnel expenses (126,331) (115,604) Services (62,108) (63,133) Logistics costs (516,380) (509,420) Depreciation and amortization (475,228) (474,249) Other (2) (51,115) (35,302) (1,231,162) (1,197,708) General and administrative expenses Personnel expenses (489,463) (437,176) Services (171,346) (142,973) Depreciation and amortization (55,014) (51,639) Other (3) (101,620) (69,444) (817,443) (701,232) Other operating (expenses) income net Rents and leases 1,476 1,058 Results from sales of other products, net 48,312 34,723 Results from sales and disposals of property, plant and equipment, intangible and biological assets, net (111,195) 8,041 Result on fair value adjustment of biological assets 1,256,315 171,618 Depletion and amortization 80,833 19,057 Tax credits - ICMS from the PIS/COFINS calculation basis (1,324) Provision for judicial liabilities (71,878) (64,300) Other operating income (expenses), net (19,874) (9,447) 1,183,989 159,426 1) Includes R$ 411,718 related to maintenance downtime, costing (R$ 368,606 as at June 30, 2022). 2) Includes expected credit losses, insurance, materials for use and consumption, travel, accommodation, trade fairs and events. 3) Includes, substantially, corporate expenses, insurance, materials for use and consumption, social programs and donations, travel and accommodation. |
COMPANY'S OPERATIONS - Summary
COMPANY'S OPERATIONS - Summary (Details) | 6 Months Ended |
Jun. 30, 2023 item | |
Domestic (Brazil) | |
COMPANY'S OPERATIONS | |
Number of industrial units | 13 |
Number of technology centers | 5 |
Number of distribution centers | 23 |
Number of ports | 3 |
Suzano Holding S.A. | |
COMPANY'S OPERATIONS | |
Percentage of ownership interest in subsidiary | 47.12% |
COMPANY'S OPERATIONS - Equity i
COMPANY'S OPERATIONS - Equity interest (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
CelluForce Inc. | ||
COMPANY'S OPERATIONS | ||
Main activity | Nanocrystalline pulp research and development | Nanocrystalline pulp research and development |
Country | Canada | Canada |
Percentage of ownership equity interests, Fair value through other comprehensive income | 8.28% | 8.28% |
Biomas Servicos Ambientais, Restauracao e Carbono S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Restoration, conservation and preservation of forests | Restoration, conservation and preservation of forests |
Country | Brazil | Brazil |
Percentage of ownership equity interests, Equity | 16.66% | 100% |
Ensyn Corporation | ||
COMPANY'S OPERATIONS | ||
Main activity | Biofuel research and development | Biofuel research and development |
Country | United States of America | United States of America |
Percentage of ownership equity interests, Equity | 26.07% | 26.59% |
F&E Tecnologies LLC | ||
COMPANY'S OPERATIONS | ||
Main activity | Biofuel production, except alcohol | Biofuel production, except alcohol |
Country | United States of America | United States of America |
Percentage of ownership equity interests, Equity | 50% | 50% |
Ibema Companhia Brasileira de Papel | ||
COMPANY'S OPERATIONS | ||
Main activity | Industrialization and commercialization of paperboard | Industrialization and commercialization of paperboard |
Country | Brazil | Brazil |
Percentage of ownership equity interests, Equity | 49.90% | 49.90% |
Spinnova Plc | ||
COMPANY'S OPERATIONS | ||
Main activity | Research of sustainable raw materials for the textile industry | Research of sustainable raw materials for the textile industry |
Country | Finland | Finland |
Percentage of ownership equity interests, Equity | 19.03% | 19.03% |
Woodspin Oy | ||
COMPANY'S OPERATIONS | ||
Main activity | Development and production of cellulose-based fibers, yarns and textile filaments | Development and production of cellulose-based fibers, yarns and textile filaments |
Country | Finland | Finland |
Percentage of ownership equity interests, Equity | 50% | 50% |
Veracel Celulose S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Industrialization, commercialization and exporting of pulp | Industrialization, commercialization and exporting of pulp |
Country | Brazil | Brazil |
Percentage of equity interests, Joint operation | 50% | 50% |
F&E Tecnologia do Brasil S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Biofuel production, except alcohol | Biofuel production, except alcohol |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
Fibria Celulose (USA) Inc. | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | Business office |
Country | United States of America | United States of America |
Percentage of equity interests, Consolidated | 100% | 100% |
Fibria Overseas Finance Ltd. | ||
COMPANY'S OPERATIONS | ||
Main activity | Financial fundraising | Financial fundraising |
Country | Cayman Island | Cayman Island |
Percentage of equity interests, Consolidated | 100% | 100% |
Fibria Terminal de Celulose de Santos SPE S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Port operations | Port operations |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
FuturaGene Ltd. | ||
COMPANY'S OPERATIONS | ||
Main activity | Biotechnology research and development | Biotechnology research and development |
Country | England | England |
Percentage of equity interests, Consolidated | 100% | 100% |
FuturaGene Delaware Inc. | ||
COMPANY'S OPERATIONS | ||
Main activity | Biotechnology research and development | Biotechnology research and development |
Country | United States of America | United States of America |
Percentage of equity interests, Consolidated | 100% | 100% |
FuturaGene Israel Ltd. | ||
COMPANY'S OPERATIONS | ||
Main activity | Biotechnology research and development | Biotechnology research and development |
Country | Israel | Israel |
Percentage of equity interests, Consolidated | 100% | 100% |
FuturaGene Inc. | ||
COMPANY'S OPERATIONS | ||
Main activity | Biotechnology research and development | Biotechnology research and development |
Country | United States of America | United States of America |
Percentage of equity interests, Consolidated | 100% | 100% |
Maxcel Empreendimentos e Participacoes S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Holding | Holding |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
Itacel - Terminal de Celulose de Itaqui S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Port operations | Port operations |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
MMC Brasil Industria e Comercio Ltda. | ||
COMPANY'S OPERATIONS | ||
Main activity | Industrialization and commercialization of wipes, cleaning and sanitary products. | |
Country | Brazil | |
Percentage of equity interests, Consolidated | 100% | |
Mucuri Energetica S.A | ||
COMPANY'S OPERATIONS | ||
Main activity | Power generation and distribution | Power generation and distribution |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
Paineiras Logistica e Transportes Ltda. | ||
COMPANY'S OPERATIONS | ||
Main activity | Road freight transport | Road freight transport |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
Portocel - Terminal Espec. Barra do Riacho S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Port operations | Port operations |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 51% | 51% |
Projetos Especiais e Investimentos Ltda. | ||
COMPANY'S OPERATIONS | ||
Main activity | Commercialization of equipment and parts | Commercialization of equipment and parts |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
SFBC Participacoes Ltda. | ||
COMPANY'S OPERATIONS | ||
Main activity | Packaging production | Packaging production |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
Stenfar S.A. Indl. Coml. Imp. Y. Exp. | ||
COMPANY'S OPERATIONS | ||
Main activity | Commercialization of paper and computer materials | Commercialization of paper and computer materials |
Country | Argentina | Argentina |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Austria GmbH | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | Business office |
Country | Austria | Austria |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Canada Inc. | ||
COMPANY'S OPERATIONS | ||
Main activity | Lignin research and development | Lignin research and development |
Country | Canada | Canada |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Ecuador S.A.S. | ||
COMPANY'S OPERATIONS | ||
Main activity | Commercialization of paper | |
Country | Ecuador | |
Percentage of equity interests, Consolidated | 100% | |
Suzano Finland Oy | ||
COMPANY'S OPERATIONS | ||
Main activity | Industrialization and commercialization of cellulose, microfiber cellulose and paper | Industrialization and commercialization of cellulose, microfiber cellulose and paper |
Country | Finland | Finland |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano International Finance B.V | ||
COMPANY'S OPERATIONS | ||
Main activity | Financial fundraising | Financial fundraising |
Country | Netherlands | Netherlands |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano International Trade GmbH | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | Business office |
Country | Austria | Austria |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Material Technology Development Ltd. | ||
COMPANY'S OPERATIONS | ||
Main activity | Biotechnology research and development | Biotechnology research and development |
Country | China | China |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Operacoes Industriais e Florestais S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Industrialization, commercialization and exporting of pulp | Industrialization, commercialization and exporting of pulp |
Country | Brazil | Brazil |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Pulp and Paper America Inc. | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | Business office |
Country | United States of America | United States of America |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Pulp and Paper Europe S.A. | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | Business office |
Country | Switzerland | Switzerland |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Shanghai Ltd. | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | Business office |
Country | China | China |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Shanghai Trading Ltd. | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | |
Country | China | |
Percentage of equity interests, Consolidated | 100% | |
Suzano Singapura Pte. Ltd. | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | |
Country | Singapore | |
Percentage of equity interests, Consolidated | 100% | |
Suzano Trading International KFT | ||
COMPANY'S OPERATIONS | ||
Main activity | Business office | Business office |
Country | Hungary | Hungary |
Percentage of equity interests, Consolidated | 100% | 100% |
Suzano Ventures LLC | ||
COMPANY'S OPERATIONS | ||
Main activity | Corporate venture capital | Corporate venture capital |
Country | United States of America | United States of America |
Percentage of equity interests, Consolidated | 100% | 100% |
COMPANY'S OPERATIONS - Cerrado
COMPANY'S OPERATIONS - Cerrado Project (Details) - Cerrado Project R$ in Thousands | Oct. 28, 2021 BRL (R$) T |
COMPANY'S OPERATIONS | |
Estimate of the annual capacity to produce eucalyptus pulp (in tons) | T | 2,550,000 |
Aggregate amount of industrial capital investment | R$ | R$ 22200000 |
COMPANY'S OPERATIONS - Acquisit
COMPANY'S OPERATIONS - Acquisition of tissue business in Brazil (Details) - MMC Brasil Industria e Comercio Ltda. R$ in Thousands, $ in Millions | 6 Months Ended | ||
Jun. 30, 2023 BRL (R$) | Jun. 01, 2023 USD ($) | Jun. 01, 2023 BRL (R$) | |
COMPANY'S OPERATIONS | |||
Total purchase consideration (full payment on closing) | $ 212,029 | R$ 1072657 | |
Book value of Shareholders' Equity of MMC Brasil | 587,226 | ||
Fair value adjustment | |||
Inventories | 7,120 | ||
Property, plant and equipment | 105,858 | ||
Trademark and patents | 189,655 | ||
Net identifiable assets acquired | 889,859 | ||
Goodwill | R$ 182798 | ||
Deferred tax recognized on fair value adjustments | R$ 0 | ||
Acquisition related costs included in administrative expenses in profit or loss | R$ 12105 |
COMPANY'S OPERATIONS -Treasury
COMPANY'S OPERATIONS -Treasury shares cancelled (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 6 Months Ended | ||
Feb. 28, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
COMPANY'S OPERATIONS | |||
Number of shares cancelled | 37,145,969 | 37,145,969 | |
Average price per share of shares cancelled | R$ 40.84 | R$ 40.84 | |
Aggregate value of shares cancelled | R$ 1517224 | R$ 1517224 | |
Share capital | R$ 9235546 | R$ 9235546 | |
Quantity of ordinary shares | 1,324,117,615 | 1,361,263,584 | |
Treasury shares | |||
COMPANY'S OPERATIONS | |||
Quantity of ordinary shares | 32,466,900 | 51,911,569 | |
Share Capital | |||
COMPANY'S OPERATIONS | |||
Share capital | R$ 9269281 | R$ 9269281 | |
Quantity of ordinary shares | 1,324,117,615 |
COMPANY'S OPERATIONS -Biomas (D
COMPANY'S OPERATIONS -Biomas (Details) - Biomas Servicos Ambientais, Restauracao e Carbono S.A. - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Feb. 27, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
COMPANY'S OPERATIONS | |||
Commitment to invest | R$ 20000 | ||
Aggregate amount paid from all partners | R$ 30000 | ||
Amount paid from each partner | 5,000 | ||
Remaining balance of commitment from all partners | 90,000 | ||
Remaining balance of commitment from each partner | R$ 15000 | ||
Percentage of ownership equity interests, Equity | 16.66% | 100% |
FINANCIAL INSTRUMENTS AND RIS_3
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Classification (Details) - Financial risks management - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | R$ 32995206 | R$ 32915878 |
Liabilities | 89,715,675 | 94,025,822 |
Total | 56,720,469 | 61,109,944 |
Amortized cost | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 87,496,959 | 89,179,027 |
Amortized cost | Trade accounts payable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 6,347,954 | 6,206,570 |
Amortized cost | Loans, financing and debentures | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 74,532,331 | 74,574,591 |
Amortized cost | Lease liabilities | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 6,195,984 | 6,182,530 |
Amortized cost | Liabilities for asset acquisition and subsidiaries | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 280,864 | 2,062,322 |
Amortized cost | Dividends payable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 2,678 | 5,094 |
Amortized cost | Other liabilities | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 137,148 | 147,920 |
Fair value through profit or loss | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 2,218,716 | 4,846,795 |
Fair value through profit or loss | Derivative financial instruments | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities | 2,218,716 | 4,846,795 |
Amortized cost | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 19,137,008 | 20,051,470 |
Amortized cost | Cash and cash equivalents | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 11,860,415 | 9,505,951 |
Amortized cost | Trade accounts receivable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 6,488,192 | 9,607,012 |
Amortized cost | Dividends receivable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 7,334 | |
Amortized cost | Other assets | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 788,401 | 931,173 |
Fair value through other comprehensive income | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 23,541 | 24,917 |
Fair value through other comprehensive income | Investments - Celluforce | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 23,541 | 24,917 |
Fair value through profit or loss | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 13,834,657 | 12,839,491 |
Fair value through profit or loss | Derivative financial instruments | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | 5,479,787 | 4,873,749 |
Fair value through profit or loss | Marketable securities | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Assets | R$ 8354870 | R$ 7965742 |
FINANCIAL INSTRUMENTS AND RIS_4
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Fair value of loans and financing (Details) - Loans and financing - Discount rate - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial Liabilities, Fair Value | R$ 71211303 | R$ 70943615 |
Foreign | Bonds | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | Secondary Market | |
Financial Liabilities, Fair Value | R$ 37361853 | 40,309,832 |
Foreign | Export credits ("Prepayment") | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | LIBOR | |
Financial Liabilities, Fair Value | R$ 16760316 | 17,724,315 |
Foreign | Assets financing | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | SOFR | |
Financial Liabilities, Fair Value | R$ 217540 | 138,644 |
Foreign | IFC - International Finance Corporation | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | SOFR | |
Financial Liabilities, Fair Value | R$ 3105751 | |
Domestic (Brazil) | Export credits ("Prepayment") | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 1303156 | 1,320,415 |
Domestic (Brazil) | BNDES | TJLP | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 230227 | 292,487 |
Domestic (Brazil) | BNDES | TLP | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 1971409 | 1,393,010 |
Domestic (Brazil) | BNDES | Fixed | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 10219 | 21,656 |
Domestic (Brazil) | BNDES | SELIC | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 644710 | 575,129 |
Domestic (Brazil) | BNDES | Currency basket | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 4122 | 10,866 |
Domestic (Brazil) | CRA ("Agribusiness Receivables Certificates") | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1/IPCA | |
Financial Liabilities, Fair Value | R$ 1264031 | 1,835,336 |
Domestic (Brazil) | Debentures | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 6663101 | 5,643,440 |
Domestic (Brazil) | NCE ("Export Credit Notes") | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 1381393 | 1,384,396 |
Domestic (Brazil) | NCR ("Rural Credit Notes") | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Yield used to discount/methodology | DI 1 | |
Financial Liabilities, Fair Value | R$ 293475 | R$ 294089 |
FINANCIAL INSTRUMENTS AND RIS_5
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Contractual maturities of financial liabilities (Details) - Liquidity risk - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | R$ 89715675 | R$ 94025822 |
Liabilities, Future Value | 122,503,893 | 131,473,547 |
Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 17,250,823 | 16,862,088 |
1 - 2 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 15,214,646 | 10,419,010 |
2 - 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 33,564,427 | 46,502,773 |
More than 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 56,473,997 | 57,689,675 |
Trade accounts payable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | 6,347,954 | 6,206,570 |
Liabilities, Future Value | 6,347,954 | 6,206,570 |
Trade accounts payable | Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 6,347,954 | 6,206,570 |
Loans, financing and debentures | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | 74,532,331 | 74,574,591 |
Liabilities, Future Value | 101,685,556 | 105,341,912 |
Loans, financing and debentures | Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 9,107,311 | 6,823,274 |
Loans, financing and debentures | 1 - 2 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 12,248,908 | 7,899,772 |
Loans, financing and debentures | 2 - 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 29,960,769 | 39,476,527 |
Loans, financing and debentures | More than 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 50,368,568 | 51,142,339 |
Lease liabilities | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | 6,195,984 | 6,182,530 |
Liabilities, Future Value | 10,891,670 | 11,053,487 |
Lease liabilities | Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 1,113,507 | 1,050,947 |
Lease liabilities | 1 - 2 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 1,959,036 | 992,379 |
Lease liabilities | 2 - 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 1,774,219 | 2,668,855 |
Lease liabilities | More than 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 6,044,908 | 6,341,305 |
Liabilities for asset acquisition and subsidiaries | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | 280,864 | 2,062,322 |
Liabilities, Future Value | 313,645 | 2,203,302 |
Liabilities for asset acquisition and subsidiaries | Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 98,899 | 1,986,633 |
Liabilities for asset acquisition and subsidiaries | 1 - 2 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 94,575 | 99,331 |
Liabilities for asset acquisition and subsidiaries | 2 - 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 89,293 | 57,421 |
Liabilities for asset acquisition and subsidiaries | More than 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 30,878 | 59,917 |
Derivative financial instruments | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | 2,218,716 | 4,846,795 |
Liabilities, Future Value | 3,125,242 | 6,515,262 |
Derivative financial instruments | Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 527,889 | 728,070 |
Derivative financial instruments | 1 - 2 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 827,564 | 1,341,108 |
Derivative financial instruments | 2 - 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 1,740,146 | 4,299,970 |
Derivative financial instruments | More than 5 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 29,643 | 146,114 |
Dividends payable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | 2,678 | 5,094 |
Liabilities, Future Value | 2,678 | 5,094 |
Dividends payable | Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 2,678 | 5,094 |
Other liabilities | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Book Value | 137,148 | 147,920 |
Liabilities, Future Value | 137,148 | 147,920 |
Other liabilities | Up to 1 year | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | 52,585 | 61,500 |
Other liabilities | 1 - 2 years | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Liabilities, Future Value | R$ 84563 | R$ 86420 |
FINANCIAL INSTRUMENTS AND RIS_6
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Exchange rate risk management (Details) R$ in Thousands, $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Nov. 30, 2021 USD ($) | Jun. 30, 2022 | Jun. 30, 2023 BRL (R$) | Dec. 31, 2022 BRL (R$) | Jul. 27, 2022 USD ($) | |
Cerrado Project | |||||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |||||
Value at risk time horizon | 36 months | ||||
Maximum investment | $ | $ 1,000,000 | $ 1,500,000 | |||
Exchange rate risk | Selling transactions in the futures markets | |||||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |||||
Value at risk time horizon | 24 months | ||||
Exchange rate risk | USD | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial assets | R$ 25122731 | R$ 23556423 | |||
Financial liabilities | (64,528,375) | (69,998,528) | |||
Net liability exposure | (39,405,644) | (46,442,105) | |||
Exchange rate risk | USD | Trade accounts payable | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial liabilities | (2,028,936) | (2,030,806) | |||
Exchange rate risk | USD | Loans and financing | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial liabilities | (60,176,982) | (61,216,140) | |||
Exchange rate risk | USD | Liabilities for asset acquisition and subsidiaries | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial liabilities | (186,058) | (2,053,259) | |||
Exchange rate risk | USD | Derivative financial instruments | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial liabilities | (2,136,399) | (4,698,323) | |||
Exchange rate risk | USD | Cash and cash equivalents | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial assets | 11,248,274 | 8,039,218 | |||
Exchange rate risk | USD | Marketable securities | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial assets | 4,826,627 | 4,510,652 | |||
Exchange rate risk | USD | Trade accounts receivable | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial assets | 4,845,044 | 7,612,768 | |||
Exchange rate risk | USD | Derivative financial instruments | |||||
Assets and liabilities exposed to foreign currency | |||||
Financial assets | R$ 4202786 | R$ 3393785 |
FINANCIAL INSTRUMENTS AND RIS_7
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Sensitivity analysis - foreign exchange rate exposure (Details) - Foreign exchange rate exposure R$ in Thousands | 6 Months Ended | |
Jun. 30, 2023 BRL (R$) | Jun. 30, 2022 item | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Closing foreign exchange rate (R$ to U.S.$) | item | 4.8192 | |
Cash and cash equivalents | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | R$ 11248274 | |
Cash and cash equivalents | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 2,812,069 | |
Cash and cash equivalents | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 5,624,137 | |
Marketable securities | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 4,826,627 | |
Marketable securities | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 1,206,657 | |
Marketable securities | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 2,413,314 | |
Trade accounts receivable | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 4,845,044 | |
Trade accounts receivable | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 1,211,261 | |
Trade accounts receivable | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 2,422,522 | |
Trade accounts payable | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (2,028,936) | |
Trade accounts payable | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (507,234) | |
Trade accounts payable | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (1,014,468) | |
Loans and financing | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (60,176,982) | |
Loans and financing | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (15,044,246) | |
Loans and financing | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (30,088,491) | |
Liabilities for asset acquisition and subsidiaries | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (186,058) | |
Liabilities for asset acquisition and subsidiaries | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (46,515) | |
Liabilities for asset acquisition and subsidiaries | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (93,029) | |
Dollar/Real | Derivative options | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | 3,201,865 | |
Dollar/Real | Derivative options | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (3,777,232) | |
Dollar/Real | Derivative options | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (7,621,974) | |
Dollar/Real | Derivative swaps | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (450,678) | |
Dollar/Real | Derivative swaps | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (1,728,220) | |
Dollar/Real | Derivative swaps | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (3,442,041) | |
Dollar/Real | Derivatives Non-Deliverable Forward ("NDF") Contracts | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | 159,434 | |
Dollar/Real | Derivatives Non-Deliverable Forward ("NDF") Contracts | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (286,048) | |
Dollar/Real | Derivatives Non-Deliverable Forward ("NDF") Contracts | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (572,176) | |
Dollar/Real | Embedded derivative | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | 187,618 | |
Dollar/Real | Embedded derivative | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (85,533) | |
Dollar/Real | Embedded derivative | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (171,067) | |
Dollar/Real | NDF parity derivatives | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | 140,411 | |
Dollar/Real | NDF parity derivatives | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (47,180) | |
Dollar/Real | NDF parity derivatives | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (84,699) | |
Dollar/Real | Commodity Derivatives | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | 22,421 | |
Dollar/Real | Commodity Derivatives | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (5,607) | |
Dollar/Real | Commodity Derivatives | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (11,212) | |
Dollar/Euro | NDF parity derivatives | Probable | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | 140,411 | |
Dollar/Euro | NDF parity derivatives | Possible 25% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | (562,869) | |
Dollar/Euro | NDF parity derivatives | Remote 50% | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Effect on profit or loss and equity due to changes in fair value of financial instruments attributable to an increase in measurement input | R$ 1125812 |
FINANCIAL INSTRUMENTS AND RIS_8
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Sensitivity analysis - exposure to interest rates (Details) R$ in Thousands | 6 Months Ended |
Jun. 30, 2023 BRL (R$) | |
CDI | Derivative options | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | R$ 3201865 |
CDI | Derivative options | Possible 25% | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (388,599) |
CDI | Derivative options | Remote 50% | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (747,669) |
CDI | Derivative swaps | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (450,678) |
CDI | Derivative swaps | Possible 25% | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (5,108) |
CDI | Derivative swaps | Remote 50% | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (11,749) |
LIBOR | Derivative swaps | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | (450,678) |
LIBOR | Derivative swaps | Possible 25% | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 260,364 |
LIBOR | Derivative swaps | Remote 50% | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 520,442 |
Interest rate risk | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Loans and financing contracts subject to renegotiation upon extinction of LIBOR | 15,566 |
Derivative contracts subject to renegotiation upon extinction of LIBOR | 15,151 |
Interest rate risk | CDI/SELIC | Cash and cash equivalents | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 560,985 |
Interest rate risk | CDI/SELIC | Cash and cash equivalents | Possible (25%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 19,144 |
Interest rate risk | CDI/SELIC | Cash and cash equivalents | Remote (50%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 38,287 |
Interest rate risk | CDI/SELIC | Marketable securities | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 3,528,243 |
Interest rate risk | CDI/SELIC | Marketable securities | Possible (25%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 120,401 |
Interest rate risk | CDI/SELIC | Marketable securities | Remote (50%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial assets attributable to an increase in measurement input | 240,803 |
Interest rate risk | CDI/SELIC | Loans and financing | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 8,125,522 |
Interest rate risk | CDI/SELIC | Loans and financing | Possible (25%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 277,283 |
Interest rate risk | CDI/SELIC | Loans and financing | Remote (50%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 554,567 |
Interest rate risk | TJLP | Loans and financing | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 277,763 |
Interest rate risk | TJLP | Loans and financing | Possible (25%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 5,055 |
Interest rate risk | TJLP | Loans and financing | Remote (50%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 10,111 |
Interest rate risk | LIBOR | Loans and financing | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 15,645,428 |
Interest rate risk | LIBOR | Loans and financing | Possible (25%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 216,902 |
Interest rate risk | LIBOR | Loans and financing | Remote (50%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 433,803 |
Interest rate risk | SOFR | Loans and financing | Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 3,115,211 |
Interest rate risk | SOFR | Loans and financing | Possible (25%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | 41,030 |
Interest rate risk | SOFR | Loans and financing | Remote (50%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on profit or loss and equity due to changes in fair value of financial liabilities attributable to an increase in measurement input | R$ 82060 |
FINANCIAL INSTRUMENTS AND RIS_9
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Sensitivity analysis to changes in the consumer price indices of the US economy (Details) - Commodity price risk - Embedded derivative - Forestry partnership agreement R$ in Thousands | 6 Months Ended |
Jun. 30, 2023 BRL (R$) | |
Probable | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on fair value of assets attributable to an increase in measurement input | R$ 187618 |
Possible (25%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on fair value of assets attributable to an increase in measurement input | (31,171) |
Remote (50%) | |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | |
Effect on fair value of assets attributable to an increase in measurement input | R$ 64295 |
FINANCIAL INSTRUMENTS AND RI_10
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Derivatives outstanding by type of contract (Details) R$ in Thousands, $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2023 BRL (R$) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 BRL (R$) |
Financial Instruments and Risks | ||||
Fair value | R$ 3261071 | R$ 26954 | ||
Operational Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 3,501,710 | 1,754,670 | ||
Operational Hedge | ZCC | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | $ 4,815,050 | $ 6,866,800 | ||
Fair value | 3,201,865 | 1,596,089 | ||
Operational Hedge | NDF (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | 243,100 | 243,100 | 248,100 | 248,100 |
Fair value | 159,434 | (2,474) | ||
Operational Hedge | NDF (Euro x US$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 399,328 | 544,702 | ||
Fair value | 140,411 | 161,055 | ||
Debt Hedges | ||||
Financial Instruments and Risks | ||||
Fair value | (450,678) | (1,768,134) | ||
Debt Hedges | Swap LIBOR to Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 3,143,877 | 3,200,179 | ||
Fair value | 927,104 | 1,052,546 | ||
Debt Hedges | Swap IPCA to CDI | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 2,130,618 | 1,741,787 | ||
Fair value | 245,159 | 278,945 | ||
Debt Hedges | Swap IPCA to Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 121,003 | |||
Fair value | (29,910) | |||
Debt Hedges | Swap CDI x Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 1,265,004 | 1,863,534 | ||
Fair value | (1,262,085) | (2,566,110) | ||
Debt Hedges | Pre-fixed Swap to US$ (US$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 350,000 | 350,000 | ||
Fair value | (360,856) | (503,605) | ||
Commodity Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 210,039 | 40,418 | ||
Commodity Hedge | Swap US-CPI (U.S.$) | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | 130,810 | $ 124,960 | ||
Fair value | 187,618 | R$ 40418 | ||
Commodity Hedge | Swap VLSFO/Brent | ||||
Financial Instruments and Risks | ||||
Notional Amount | $ | $ 128,307 | |||
Fair value | R$ 22421 |
FINANCIAL INSTRUMENTS AND RI_11
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Derivatives outstanding by type of contract, classified (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Current assets | R$ 3747881 | R$ 3048493 |
Non-current assets | 1,731,906 | 1,825,256 |
Current liabilities | (483,512) | (667,681) |
Non-current liabilities | (1,735,204) | (4,179,114) |
Total, net | R$ 3261071 | R$ 26954 |
FINANCIAL INSTRUMENTS AND RI_12
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Fair value by maturity schedule (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 3261071 | R$ 26954 |
2023 | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | 2,413,838 | 2,380,812 |
2024 | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | 1,785,080 | 297,156 |
2025 | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | (477,814) | (1,225,193) |
2026 onwards | ||
Financial Instruments and Risks | ||
Derivative fair value asset (liability), net | R$ 460033 | R$ 1425821 |
FINANCIAL INSTRUMENTS AND RI_13
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Outstanding of assets and liabilities derivatives positions (Details) R$ in Thousands, $ in Thousands | Jun. 30, 2023 USD ($) | Jun. 30, 2023 BRL (R$) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 BRL (R$) |
Financial Instruments and Risks | ||||
Fair value | R$ 3261071 | R$ 26954 | ||
Debt Hedges | ||||
Financial Instruments and Risks | ||||
Fair value | (450,678) | (1,768,134) | ||
Debt Hedges | Swap CDI x Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | $ 1,265,004 | $ 1,863,534 | ||
Fair value | (1,262,085) | (2,566,110) | ||
Debt Hedges | Swap LIBOR to Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 3,143,877 | 3,200,179 | ||
Fair value | 927,104 | 1,052,546 | ||
Debt Hedges | Swap IPCA to CDI | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 2,130,618 | 1,741,787 | ||
Fair value | 245,159 | 278,945 | ||
Operational Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 3,501,710 | 1,754,670 | ||
Operational Hedge | Zero cost collar (U.S.$ x R$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 4,815,050 | 6,866,800 | ||
Fair value | 3,201,865 | 1,596,089 | ||
Operational Hedge | NDF (R$ x US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | 243,100 | 243,100 | 248,100 | 248,100 |
Fair value | 159,434 | (2,474) | ||
Operational Hedge | NDF (Euro x US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 399,328 | 544,702 | ||
Fair value | 140,411 | 161,055 | ||
Commodity Hedge | ||||
Financial Instruments and Risks | ||||
Fair value | 210,039 | 40,418 | ||
Commodity Hedge | Swap US-CPI standing wood | ||||
Financial Instruments and Risks | ||||
Notional amount | 130,810 | 124,960 | ||
Fair value | 187,618 | 40,418 | ||
Commodity Hedge | Swap VLSFO/Brent | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 128,307 | |||
Fair value | 22,421 | |||
Assets | Debt Hedges | ||||
Financial Instruments and Risks | ||||
Fair value | 1,621,036 | 2,143,127 | ||
Assets | Debt Hedges | Swap CDI x Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | 4,623,091 | 7,081,545 | ||
Fair value | 368,657 | 617,835 | ||
Assets | Debt Hedges | Swap Pre-Fixed to US$ | ||||
Financial Instruments and Risks | ||||
Notional amount | 1,317,226 | 1,317,226 | ||
Fair value | 45,329 | |||
Assets | Debt Hedges | Swap LIBOR to Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 3,143,877 | 3,200,000 | ||
Fair value | 927,104 | 1,052,546 | ||
Assets | Debt Hedges | Swap IPCA to CDI | ||||
Financial Instruments and Risks | ||||
Notional amount | 2,294,552 | 2,041,327 | ||
Fair value | 325,275 | 427,417 | ||
Assets | Debt Hedges | Swap IPCA to U.S.$ | ||||
Financial Instruments and Risks | ||||
Notional amount | 610,960 | |||
Liabilities | Debt Hedges | ||||
Financial Instruments and Risks | ||||
Fair value | (2,071,714) | (3,911,261) | ||
Liabilities | Debt Hedges | Swap CDI x Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 1,265,000 | 1,863,534 | ||
Fair value | (1,630,742) | (3,183,945) | ||
Liabilities | Debt Hedges | Swap Pre-Fixed to US$ | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | 350,000 | 350,000 | ||
Fair value | (360,856) | (548,934) | ||
Liabilities | Debt Hedges | Swap LIBOR to Fixed (US$) | ||||
Financial Instruments and Risks | ||||
Notional amount | $ | $ 3,143,877 | $ 3,200,000 | ||
Liabilities | Debt Hedges | Swap IPCA to CDI | ||||
Financial Instruments and Risks | ||||
Notional amount | 2,130,618 | 1,741,787 | ||
Fair value | R$ 80116 | (148,472) | ||
Liabilities | Debt Hedges | Swap IPCA to U.S.$ | ||||
Financial Instruments and Risks | ||||
Notional amount | 121,003 | |||
Fair value | R$ 29910 |
FINANCIAL INSTRUMENTS AND RI_14
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Fair value settled amounts (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | R$ 1664900 | R$ 282225 |
Operational Hedge | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 1,515,190 | 734,032 |
Operational Hedge | Zero cost collar (R$ x U.S.$) | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 1,445,973 | 718,618 |
Operational Hedge | NDF (R$ x US$) | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 18,538 | 8,301 |
Operational Hedge | NDF (Euro x US$) | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 50,679 | 7,113 |
Commodity Hedge | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 8,853 | |
Commodity Hedge | Swap VLSFO/other | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 8,853 | |
Debt Hedges | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 140,857 | (451,807) |
Debt Hedges | Swap CDI x Fixed (US$) | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | (283,888) | (261,570) |
Debt Hedges | Swap IPCA to CDI | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 158,092 | (5,180) |
Debt Hedges | Swap IPCA to Fixed (US$) | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | (3,945) | 171 |
Debt Hedges | Swap Pre-Fixed to US$ | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | 52,746 | 54,128 |
Debt Hedges | Swap LIBOR to Fixed (US$) | ||
Financial Instruments and Risks | ||
Settled derivatives, received (paid) | R$ 217852 | R$ 239356 |
FINANCIAL INSTRUMENTS AND RI_15
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - Fair value hierarchy (Details) - Fair value - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | R$ 30772318 | R$ 27496594 |
Financial liabilities | 2,218,716 | 4,846,795 |
Liabilities, Fair value through profit or loss | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial liabilities | 2,218,716 | 4,846,795 |
Liabilities, Fair value through profit or loss | Derivative financial instruments | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial liabilities | 2,218,716 | 4,846,795 |
Assets, Fair value through profit or loss | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 13,834,657 | 12,839,491 |
Assets, Fair value through profit or loss | Derivative financial instruments | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 5,479,787 | 4,873,749 |
Assets, Fair value through profit or loss | Marketable securities | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 8,354,870 | 7,965,742 |
Assets, Fair value through other comprehensive income | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 23,541 | 24,917 |
Assets, Fair value through other comprehensive income | Other investments - CelluForce | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 23,541 | 24,917 |
Assets, Amortized cost | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 16,914,120 | 14,632,186 |
Assets, Amortized cost | Biological assets | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 16,914,120 | 14,632,186 |
Level 2 | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 13,834,657 | 12,839,491 |
Financial liabilities | 2,218,716 | 4,846,795 |
Level 2 | Liabilities, Fair value through profit or loss | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial liabilities | 2,218,716 | 4,846,795 |
Level 2 | Liabilities, Fair value through profit or loss | Derivative financial instruments | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial liabilities | 2,218,716 | 4,846,795 |
Level 2 | Assets, Fair value through profit or loss | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 13,834,657 | 12,839,491 |
Level 2 | Assets, Fair value through profit or loss | Derivative financial instruments | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 5,479,787 | 4,873,749 |
Level 2 | Assets, Fair value through profit or loss | Marketable securities | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 8,354,870 | 7,965,742 |
Level 3 | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 16,937,661 | 14,657,103 |
Level 3 | Assets, Fair value through other comprehensive income | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 23,541 | 24,917 |
Level 3 | Assets, Fair value through other comprehensive income | Other investments - CelluForce | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 23,541 | 24,917 |
Level 3 | Assets, Amortized cost | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | 16,914,120 | 14,632,186 |
Level 3 | Assets, Amortized cost | Biological assets | ||
FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT | ||
Financial assets | R$ 16914120 | R$ 14632186 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Cash equivalents | ||||
Total cash and cash equivalents | R$ 11860415 | R$ 9505951 | R$ 7712081 | R$ 13590776 |
Cash and banks | ||||
Cash and cash equivalents | ||||
Cash and banks | R$ 10327055 | 8,064,193 | ||
Fixed | Cash and banks | ||||
Cash equivalents | ||||
Average yield p.a. % | 5.34% | |||
Local | Fixed-term deposits (Compromised) | ||||
Cash equivalents | ||||
Fixed-term deposits | R$ 560985 | R$ 1441758 | ||
Local | CDI | Fixed-term deposits (Compromised) | ||||
Cash equivalents | ||||
Percentage of basis used to calculate interest rate | 97.30% | |||
Foreign | Fixed-term deposits | ||||
Cash equivalents | ||||
Fixed-term deposits | R$ 972375 | |||
Foreign | Fixed | Fixed-term deposits | ||||
Cash equivalents | ||||
Average yield p.a. % | 6.01% |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
MARKETABLE SECURITIES | ||
Marketable securities | R$ 8354870 | R$ 7965742 |
Current | 7,913,730 | 7,546,639 |
Non-Current | 441,140 | 419,103 |
Local | ||
MARKETABLE SECURITIES | ||
Marketable securities | 3,528,243 | 3,455,090 |
Foreign | ||
MARKETABLE SECURITIES | ||
Marketable securities | 4,826,627 | 4,510,652 |
Private Funds | Local | ||
MARKETABLE SECURITIES | ||
Marketable securities | R$ 1034750 | 1,208,975 |
Private Funds | CDI | Local | ||
MARKETABLE SECURITIES | ||
Percentage of basis used to calculate interest rate | 112.40% | |
Private Securities (CDBs) | Local | ||
MARKETABLE SECURITIES | ||
Marketable securities | R$ 2052353 | 1,827,012 |
Private Securities (CDBs) | CDI | Local | ||
MARKETABLE SECURITIES | ||
Percentage of basis used to calculate interest rate | 100.51% | |
CDBs - Escrow Account | Local | ||
MARKETABLE SECURITIES | ||
Marketable securities | R$ 441140 | 419,103 |
CDBs - Escrow Account | CDI | Local | ||
MARKETABLE SECURITIES | ||
Percentage of basis used to calculate interest rate | 100.24% | |
Time Deposits | Foreign | ||
MARKETABLE SECURITIES | ||
Marketable securities | R$ 4563527 | 4,386,589 |
Average yield p.a. % | 6.39% | |
Other | Foreign | ||
MARKETABLE SECURITIES | ||
Marketable securities | R$ 263100 | R$ 124063 |
TRADE ACCOUNTS RECEIVABLE - Bre
TRADE ACCOUNTS RECEIVABLE - Breakdown of balances (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 6488192 | R$ 9607012 |
Factoring of receivables | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 4,227,031 | 6,889,492 |
Gross | Domestic (Brazil) | Third parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 1,599,377 | 1,915,745 |
Gross | Domestic (Brazil) | Related parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 73,564 | 99,608 |
Gross | Foreign | Third parties | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 4,845,044 | 7,612,768 |
Expected credit losses | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 29793 | R$ 21109 |
TRADE ACCOUNTS RECEIVABLE - B_2
TRADE ACCOUNTS RECEIVABLE - Breakdown of trade accounts receivable by maturity (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 6488192 | R$ 9607012 |
Neither past due nor impaired | Current | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 5,432,105 | 8,652,376 |
Past due but not impaired | Up to 30 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 855,757 | 777,150 |
Past due but not impaired | From 31 to 60 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 44,915 | 74,253 |
Past due but not impaired | From 61 to 90 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 50,212 | 54,784 |
Past due but not impaired | From 91 to 120 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 9,921 | 20,975 |
Past due but not impaired | From 121 to 180 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | 50,728 | 18,945 |
Past due but not impaired | From 181 days | ||
TRADE ACCOUNTS RECEIVABLE | ||
Financial assets | R$ 44554 | R$ 8529 |
TRADE ACCOUNTS RECEIVABLE - Rol
TRADE ACCOUNTS RECEIVABLE - Rollforward of expected credit losses (Details) - Trade accounts receivable - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Rollforward of the expected credit losses | ||
Opening balance | R$ 21109 | R$ 34763 |
Additions | (10,464) | (5,228) |
Reversals | 177 | 3,576 |
Write-offs | 1,536 | 12,355 |
Exchange rate variation | (67) | (2,951) |
Closing balance | R$ 29793 | R$ 21109 |
TRADE ACCOUNTS RECEIVABLE - Mai
TRADE ACCOUNTS RECEIVABLE - Main customers (Details) - Net Sales - customer | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Pulp | ||
TRADE ACCOUNTS RECEIVABLE | ||
Number of major customers responsible for more than 10% of net sales | 1 | 1 |
Concentration risk percentage | 12.37% | 10.67% |
Paper | ||
TRADE ACCOUNTS RECEIVABLE | ||
Number of major customers responsible for more than 10% of net sales | 0 | 0 |
Threshold concentration risk percentage | 10% | 10% |
INVENTORIES - Balances (Details
INVENTORIES - Balances (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
INVENTORIES | ||
Work in process | R$ 119644 | R$ 93964 |
Spare parts and other | 978,951 | 843,469 |
Inventories | 6,422,496 | 5,728,261 |
Pulp | Domestic (Brazil) | ||
INVENTORIES | ||
Finished goods | 501,037 | 616,415 |
Pulp | Foreign | ||
INVENTORIES | ||
Finished goods | 1,711,100 | 1,426,064 |
Paper | Domestic (Brazil) | ||
INVENTORIES | ||
Finished goods | 535,026 | 358,973 |
Paper | Foreign | ||
INVENTORIES | ||
Finished goods | 245,267 | 192,671 |
Wood | ||
INVENTORIES | ||
Raw materials | 1,586,058 | 1,480,616 |
Operating supplies and packaging | ||
INVENTORIES | ||
Raw materials | R$ 745413 | R$ 716089 |
INVENTORIES - Roll-forward of e
INVENTORIES - Roll-forward of estimated losses (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Roll-forward of estimated losses | ||
Inventories pledged as collateral | R$ 0 | R$ 0 |
Inventories | ||
Roll-forward of estimated losses | ||
Opening balance | (105,989) | (91,258) |
Additions | (23,859) | (89,552) |
Reversals | 24,713 | 33,492 |
Write-offs | 17,893 | 41,329 |
Closing balance | R$ 87242 | R$ 105989 |
RECOVERABLE TAXES - Summary (De
RECOVERABLE TAXES - Summary (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
RECOVERABLE TAXES | |||
IRPJ/CSLL - prepayments and withheld taxes | R$ 328747 | R$ 179812 | |
PIS and COFINS - on acquisitions of property, plant and equipment | 87,955 | 89,334 | |
PIS and COFINS - operations | 615,322 | 523,970 | |
PIS/COFINS - exclusions from ICMS | 458,319 | 570,945 | |
ICMS - on acquisitions of property, plant and equipment | 358,999 | 167,286 | |
ICMS - operations | 1,446,388 | 1,423,375 | |
Reintegra program | 76,549 | 65,971 | |
Other taxes and contributions | 39,690 | 39,057 | |
Provision for loss on ICMS credits | (1,306,768) | (1,103,807) | R$ 1064268 |
Recoverable taxes | 2,105,201 | 1,955,943 | |
Current | 747,847 | 549,580 | |
Non-current | R$ 1357354 | R$ 1406363 |
RECOVERABLE TAXES - Roll-forwar
RECOVERABLE TAXES - Roll-forward of provision for loss (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
ICMS | ||
Opening balance | R$ 1103807 | R$ 1064268 |
Addition | (217,782) | (221,903) |
Write-off | 18,464 | |
Reversal | 14,821 | 163,900 |
Closing balance | R$ 1306768 | R$ 1103807 |
ADVANCES TO SUPPLIERS (Details)
ADVANCES TO SUPPLIERS (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Advances to suppliers | ||
Advances to suppliers | R$ 2084380 | R$ 1700278 |
Current | 103,181 | 108,146 |
Non current | 1,981,199 | 1,592,132 |
Forestry development program and partnerships | ||
Advances to suppliers | ||
Advances to suppliers | 1,981,199 | 1,592,132 |
Advance to suppliers - others | ||
Advances to suppliers | ||
Advances to suppliers | R$ 103181 | R$ 108146 |
RELATED PARTIES - Balances reco
RELATED PARTIES - Balances recognized in assets and liabilities and amounts transacted in the period (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
RELATED PARTIES | |||
Assets | R$ 78139 | R$ 106973 | |
Liabilities | (13,161) | (3,776) | |
Sales (purchases), net | 108,105 | R$ 88570 | |
Trade accounts payable | |||
RELATED PARTIES | |||
Liabilities | (13,161) | (3,776) | |
Trade accounts receivable | |||
RELATED PARTIES | |||
Assets | 73,564 | 99,608 | |
Dividends receivable | |||
RELATED PARTIES | |||
Assets | 7,334 | ||
Other assets | |||
RELATED PARTIES | |||
Assets | 4,575 | 31 | |
Transactions with controlling shareholders | |||
RELATED PARTIES | |||
Assets | 5 | ||
Sales (purchases), net | 22 | 30 | |
Suzano Holding | |||
RELATED PARTIES | |||
Assets | 5 | ||
Sales (purchases), net | 22 | 30 | |
Transactions with companies of the Suzano Group and other related parties | |||
RELATED PARTIES | |||
Assets | 78,139 | 106,968 | |
Liabilities | (13,161) | (3,776) | |
Sales (purchases), net | 108,083 | 88,540 | |
Management | |||
RELATED PARTIES | |||
Liabilities | (4) | (5) | |
Sales (purchases), net | (810) | (15) | |
Bexma Participacoes Ltda. | |||
RELATED PARTIES | |||
Assets | 1 | ||
Sales (purchases), net | 4 | 4 | |
Bizma Investimentos Ltda. | |||
RELATED PARTIES | |||
Assets | 1 | ||
Sales (purchases), net | 3 | 4 | |
Civelec Participacoes Ltda | |||
RELATED PARTIES | |||
Assets | 4,575 | ||
Sales (purchases), net | 4,825 | ||
Fundacao Arymax | |||
RELATED PARTIES | |||
Sales (purchases), net | 1 | 1 | |
Ibema Companhia Brasileira de Papel | |||
RELATED PARTIES | |||
Assets | 73,564 | 106,940 | |
Liabilities | (12,033) | (3,705) | |
Sales (purchases), net | 108,105 | 90,916 | |
Instituto Ecofuturo - Futuro Para o Desenvolvimento Sustentavel | |||
RELATED PARTIES | |||
Assets | 3 | ||
Liabilities | (1,124) | (66) | |
Sales (purchases), net | (3,959) | (2,267) | |
IPFL Holding S.A | |||
RELATED PARTIES | |||
Assets | R$ 23 | ||
Sales (purchases), net | 2 | 2 | |
Nemonorte Imoveis e Participacoes Ltda. | |||
RELATED PARTIES | |||
Sales (purchases), net | R$ 88 | R$ 105 |
RELATED PARTIES - Management co
RELATED PARTIES - Management compensation (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Short-term benefits | ||
Salary or compensation | R$ 23822 | R$ 24741 |
Direct and indirect benefits | 1,194 | 464 |
Bonus | 4,724 | 3,516 |
Total short term benefits | 29,740 | 28,721 |
Long-term benefits | ||
Share-based compensation plan | 12,407 | 25,726 |
Total long term benefits | 12,407 | 25,726 |
Total management compensation | R$ 42147 | R$ 54447 |
INCOME AND SOCIAL CONTRIBUTIO_3
INCOME AND SOCIAL CONTRIBUTION TAXES - Summary (Details) R$ in Thousands | 6 Months Ended |
Jun. 30, 2023 BRL (R$) | |
INCOME AND SOCIAL CONTRIBUTION TAXES | |
Base rate for income tax and social contribution taxes | 15% |
Additional income tax rate on taxable income in excess of threshold amount | 10% |
Threshold amount of income for additional tax rate | R$ 240 |
Additional social contribution tax rate on taxable income in excess of threshold amount | 9% |
INCOME AND SOCIAL CONTRIBUTIO_4
INCOME AND SOCIAL CONTRIBUTION TAXES - Deferred income and social contribution taxes (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred income and social contribution taxes | ||
Assets - temporary differences | R$ 6509724 | R$ 8625505 |
Liabilities - temporary differences | 6,373,463 | 4,640,208 |
Non-current assets | 147,638 | 3,986,415 |
Non-current liabilities | 11,377 | 1,118 |
Tax loss | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 1,203,724 | 1,207,096 |
Negative tax basis of social contribution | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 453,538 | 445,250 |
Provision for judicial liabilities | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 292,460 | 268,596 |
Operating provisions and other losses | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 1,030,664 | 999,028 |
Exchange rate variation | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 2,369,677 | 4,297,503 |
Amortization of fair value adjustments arising from business combinations | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 665,983 | 680,142 |
Unrealized profit on inventories | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 164,996 | 363,052 |
Leases | ||
Deferred income and social contribution taxes | ||
Assets - temporary differences | 328,682 | 364,838 |
Goodwill - tax benefit on unamortized goodwill | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 1,161,410 | 1,023,103 |
Property, plant and equipment - deemed cost | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 1,174,570 | 1,217,349 |
Depreciation accelerated for tax-incentive reason | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 834,389 | 869,997 |
Capitalized loan costs | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 404,955 | 210,834 |
Fair value of biological assets | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 1,027,008 | 703,274 |
Deferred taxes, net of fair value adjustment | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 384,016 | 398,950 |
Tax credits - gains from tax lawsuit (exclusion of ICMS from the PIS and COFINS basis) | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 155,828 | 194,121 |
Derivatives gains ("MtM") | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 1,108,764 | 9,164 |
Provision of deferred taxes on results of associates abroad | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | 98,984 | |
Other temporary differences | ||
Deferred income and social contribution taxes | ||
Liabilities - temporary differences | R$ 23539 | R$ 13416 |
INCOME AND SOCIAL CONTRIBUTIO_5
INCOME AND SOCIAL CONTRIBUTION TAXES - Carryforwards (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
INCOME AND SOCIAL CONTRIBUTION TAXES | ||
Tax loss carryforward | R$ 4814896 | R$ 4828384 |
Negative tax basis of social contribution carryforward | R$ 5039311 | R$ 4947222 |
INCOME AND SOCIAL CONTRIBUTIO_6
INCOME AND SOCIAL CONTRIBUTION TAXES - Rollforward of deferred tax assets (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Rollforward of net balance of deferred income tax | ||
Opening balance | R$ 3985297 | R$ 8729929 |
Tax loss | (3,372) | 50,220 |
Negative tax basis of social contribution | 8,288 | 34,176 |
Provision for judicial liabilities | 23,864 | 19,251 |
Operating provisions and other losses | 31,636 | 33,898 |
Exchange rate variation | (1,927,826) | (2,257,699) |
Derivative gains ("MtM") | (1,099,600) | (2,202,857) |
Amortization of fair value adjustments arising from business combinations | 775 | 8,970 |
Unrealized profit on inventories | (198,056) | 64,164 |
Leases | (36,156) | (8,534) |
Goodwill - tax benefit on unamortized goodwill | (138,307) | (276,614) |
Property, plant and equipment - deemed cost | 42,779 | 99,510 |
Depreciation accelerated for tax-incentive reason | 35,608 | 74,952 |
Capitalized loan costs | (194,121) | (111,435) |
Fair value of biological assets | (323,734) | (272,308) |
Deferred taxes on the result of subsidiaries abroad | (98,984) | |
Credits on exclusion of ICMS from the PIS/COFINS tax base | 38,293 | 3,906 |
Other temporary differences | (10,123) | (4,232) |
Closing balance | R$ 136261 | R$ 3985297 |
INCOME AND SOCIAL CONTRIBUTIO_7
INCOME AND SOCIAL CONTRIBUTION TAXES - Reconciliation of effects of income tax and social contribution on profit or loss (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of the effects of income tax and social contribution on profit or loss | ||
Net income (loss) before taxes | R$ 14380751 | R$ 13937137 |
Income tax and social contribution benefit (expense) at statutory nominal rate of 34% | R$ 4889455 | R$ 4738627 |
Tax rate | 34% | 34% |
Tax effect on permanent differences | ||
Taxation (difference) on profits of subsidiaries in Brazil and abroad | R$ 815768 | R$ 1473037 |
Equity method | 143 | 3,164 |
Thin capitalization | (27,114) | (198,725) |
Credit related to Reintegra Program | 3,694 | 3,677 |
Director bonuses | (3,481) | (11,176) |
Tax incentives | 41,769 | 22,464 |
Donations / Fines - other | (1,659) | (3,052) |
Income and social contribution benefits (expenses) for the period | (4,060,335) | (3,449,238) |
Income tax | ||
Current | (193,265) | (116,819) |
Deferred | (2,830,430) | (2,446,211) |
Total income Tax | (3,023,695) | (2,563,030) |
Social Contribution | ||
Current | (17,738) | (5,818) |
Deferred | (1,018,902) | (880,390) |
Total Social Contribution | (1,036,640) | (886,208) |
Income and social contribution benefits (expenses) for the period | R$ 4060335 | R$ 3449238 |
Effective rate of income and social contribution tax expenses | 28.23% | 24.75% |
BIOLOGICAL ASSETS - Roll-forwar
BIOLOGICAL ASSETS - Roll-forward of biological assets (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Roll-forward of biological assets | |||
Opening balance | R$ 14632186 | R$ 12248732 | R$ 12248732 |
Additions | 2,899,032 | 4,957,380 | |
Depletions | (1,805,371) | (3,665,057) | |
Gain on fair value adjustment | 1,256,315 | R$ 171618 | 1,199,759 |
Disposals | (36,278) | (82,331) | |
Other write-offs | (31,764) | (26,297) | |
Closing balance | R$ 16914120 | R$ 14632186 | |
Effective area of forest from the year of planting | 3 years | ||
Minimum | |||
Roll-forward of biological assets | |||
Average cycle of forest formation | 6 years | ||
Maximum | |||
Roll-forward of biological assets | |||
Average cycle of forest formation | 7 years |
BIOLOGICAL ASSETS - Measurement
BIOLOGICAL ASSETS - Measurement of the premises adopted (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 ha R$ / m³ m / ha | Dec. 31, 2022 ha m / ha R$ / m³ | |
BIOLOGICAL ASSETS | ||
Planted useful area (hectare) | 1,105,168 | 1,097,081 |
Average annual growth (IMA) - m3/hectare /year | m / ha | 37.61 | 37.07 |
Average gross sale price of eucalyptus - R$/m3 | R$ / m³ | 97.34 | 90.16 |
Discount rate - % (post-tax) | 8.80% | 9.10% |
Mature assets | ||
BIOLOGICAL ASSETS | ||
Planted useful area (hectare) | 181,573 | 134,752 |
Immature assets | ||
BIOLOGICAL ASSETS | ||
Planted useful area (hectare) | 923,595 | 962,329 |
BIOLOGICAL ASSETS - Fair value
BIOLOGICAL ASSETS - Fair value adjustment (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair value adjustment of biological assets recognized under other operating income (expense), net | |||
Physical changes | R$ 432212 | R$ 37088 | |
Price | 824,103 | 1,236,847 | |
Fair value adjustment of biological assets | 1,256,315 | R$ 171618 | 1,199,759 |
Biological assets pledged | R$ 0 | R$ 0 |
INVESTMENTS - Investments break
INVESTMENTS - Investments breakdown (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
INVESTMENTS | ||
Investments in associates and joint ventures | R$ 383500 | R$ 354200 |
Goodwill | 233,228 | 233,399 |
Other investments evaluated at fair value through other comprehensive income - Celluforce | 23,541 | 24,917 |
Total investments | R$ 640269 | R$ 612516 |
INVESTMENTS - Investments in as
INVESTMENTS - Investments in associates and joint ventures (Details) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 BRL (R$) | Jun. 30, 2022 BRL (R$) | Jun. 30, 2023 BRL (R$) | Jun. 30, 2023 BRL (R$) € / shares | Jun. 30, 2022 BRL (R$) | Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 BRL (R$) | |
INVESTMENTS | |||||||
Equity | R$ 42700013 | R$ 24166688 | R$ 42700013 | R$ 42700013 | R$ 24166688 | R$ 33166365 | R$ 15175130 |
Income (expenses) of the year | 5,077,623 | R$ 181789 | 10,320,416 | 10,487,899 | |||
Company Participation, in equity | 407,041 | 407,041 | 407,041 | 379,117 | |||
Company Participation, in the income (expense) of the period | 419 | 9,307 | |||||
Associates | |||||||
INVESTMENTS | |||||||
Company Participation, in equity | 100,837 | 100,837 | 100,837 | R$ 114329 | |||
Company Participation, in the income (expense) of the period | R$ 11010 | 658 | |||||
Ensyn Corporation | |||||||
INVESTMENTS | |||||||
Participation equity (%), Associate | 26.07% | 26.59% | |||||
Company Participation, in equity | 700 | R$ 700 | 700 | R$ 1250 | |||
Company Participation, in the income (expense) of the period | R$ 4304 | 5,597 | |||||
Spinnova Plc | |||||||
INVESTMENTS | |||||||
Participation equity (%), Associate | 19.03% | 19.03% | |||||
Company Participation, in equity | 100,137 | R$ 100137 | R$ 100137 | R$ 113079 | |||
Company Participation, in the income (expense) of the period | (6,706) | (4,939) | |||||
Average share price quoted on the NFNGM | € / shares | R$ 4.91 | ||||||
Joint ventures | |||||||
INVESTMENTS | |||||||
Company Participation, in equity | 282,663 | 282,663 | R$ 282663 | R$ 239871 | |||
Company Participation, in the income (expense) of the period | R$ 11661 | 8,763 | |||||
Biomas | |||||||
INVESTMENTS | |||||||
Participation equity (%), Associate | 16.66% | 100% | |||||
Biomas | Domestic (Brazil) | |||||||
INVESTMENTS | |||||||
Participation equity (%), Joint venture | 16.66% | ||||||
Company Participation, in equity | 4,825 | R$ 4825 | 4,825 | ||||
Company Participation, in the income (expense) of the period | R$ 175 | ||||||
Ibema Companhia Brasileira de Papel | |||||||
INVESTMENTS | |||||||
Participation equity (%), Associate | 49.90% | 49.90% | |||||
Ibema Companhia Brasileira de Papel | Domestic (Brazil) | |||||||
INVESTMENTS | |||||||
Participation equity (%), Joint venture | 49.90% | ||||||
Company Participation, in equity | 182,985 | R$ 182985 | 182,985 | R$ 158996 | |||
Company Participation, in the income (expense) of the period | R$ 21524 | 8,764 | |||||
F&E Technologies LLC | Foreign | |||||||
INVESTMENTS | |||||||
Participation equity (%), Joint venture | 50% | ||||||
Company Participation, in equity | 4,964 | R$ 4964 | 4,964 | R$ 5230 | |||
Woodspin Oy | |||||||
INVESTMENTS | |||||||
Participation equity (%), Associate | 50% | 50% | |||||
Woodspin Oy | Foreign | |||||||
INVESTMENTS | |||||||
Participation equity (%), Joint venture | 50% | ||||||
Company Participation, in equity | 89,889 | R$ 89889 | 89,889 | R$ 75645 | |||
Company Participation, in the income (expense) of the period | (9,688) | (1) | |||||
Other movements | |||||||
INVESTMENTS | |||||||
Company Participation, in equity | 23,541 | 23,541 | 23,541 | R$ 24917 | |||
Company Participation, in the income (expense) of the period | (232) | R$ 114 | |||||
Ensyn Corporation | |||||||
INVESTMENTS | |||||||
Equity | 2,684 | 2,684 | 2,684 | ||||
Income (expenses) of the year | (16,508) | ||||||
Spinnova Plc | |||||||
INVESTMENTS | |||||||
Equity | 526,204 | 526,204 | 526,204 | ||||
Biomas | Domestic (Brazil) | |||||||
INVESTMENTS | |||||||
Equity | 28,962 | 28,962 | 28,962 | ||||
Income (expenses) of the year | (1,051) | ||||||
Ibema Companhia Brasileira de Papel | Domestic (Brazil) | |||||||
INVESTMENTS | |||||||
Equity | 366,704 | 366,704 | 366,704 | ||||
Income (expenses) of the year | 76,069 | ||||||
F&E Technologies LLC | Foreign | |||||||
INVESTMENTS | |||||||
Equity | 9,928 | 9,928 | 9,928 | ||||
Woodspin Oy | Foreign | |||||||
INVESTMENTS | |||||||
Equity | R$ 179778 | 179,778 | R$ 179778 | ||||
Income (expenses) of the year | R$ 19376 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Summary (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment | ||
Beginning balance | R$ 50656634 | R$ 38169703 |
Additions | 6,408,564 | 11,623,984 |
Additions of merged and acquired companies | 589,165 | 3,829,344 |
Write-offs | (143,696) | (142,205) |
Depreciation | (1,455,462) | (2,802,056) |
Transfers | (26,897) | (22,136) |
Ending balance | 56,028,308 | 50,656,634 |
Noncash effect of work in progress related to Cerrado Project | 649,116 | |
Lands | ||
Property, Plant and Equipment | ||
Beginning balance | 14,486,408 | 9,791,102 |
Additions | 11,504 | 5,089 |
Additions of merged and acquired companies | 4,572 | 3,829,344 |
Write-offs | (23,121) | (69,773) |
Transfers | 255,036 | 930,646 |
Ending balance | R$ 14734399 | 14,486,408 |
Buildings | ||
Property, Plant and Equipment | ||
Average rate % | 3.52% | |
Property, Plant and Equipment | ||
Beginning balance | R$ 5764977 | 5,838,721 |
Additions | 516 | |
Additions of merged and acquired companies | 110,965 | |
Write-offs | (30,925) | (10,613) |
Depreciation | (152,674) | (310,429) |
Transfers | 158,860 | 246,782 |
Ending balance | R$ 5851203 | 5,764,977 |
Machinery and equipment and facilities | ||
Property, Plant and Equipment | ||
Average rate % | 6.24% | |
Property, Plant and Equipment | ||
Beginning balance | R$ 19618653 | 20,604,796 |
Additions | 233,146 | 381,741 |
Additions of merged and acquired companies | 451,969 | |
Write-offs | (31,743) | (58,435) |
Depreciation | (1,236,907) | (2,367,163) |
Transfers | 1,051,866 | 1,057,714 |
Ending balance | 20,086,984 | 19,618,653 |
Work in progress | ||
Property, Plant and Equipment | ||
Beginning balance | 10,373,151 | 1,603,915 |
Additions | 6,159,347 | 11,220,806 |
Additions of merged and acquired companies | 8,306 | |
Transfers | (1,609,709) | (2,451,570) |
Ending balance | R$ 14931095 | 10,373,151 |
Other | ||
Property, Plant and Equipment | ||
Average rate % | 17.41% | |
Property, Plant and Equipment | ||
Beginning balance | R$ 413445 | 331,169 |
Additions | 4,567 | 15,832 |
Additions of merged and acquired companies | 13,353 | |
Write-offs | (57,907) | (3,384) |
Depreciation | (65,881) | (124,464) |
Transfers | 117,050 | 194,292 |
Ending balance | 424,627 | 413,445 |
Cost | ||
Property, Plant and Equipment | ||
Beginning balance | 80,946,127 | 65,865,068 |
Ending balance | 87,656,506 | 80,946,127 |
Cost | Lands | ||
Property, Plant and Equipment | ||
Beginning balance | 14,486,408 | 9,791,102 |
Ending balance | 14,734,399 | 14,486,408 |
Cost | Buildings | ||
Property, Plant and Equipment | ||
Beginning balance | 9,644,875 | 9,415,818 |
Ending balance | 9,852,001 | 9,644,875 |
Cost | Machinery and equipment and facilities | ||
Property, Plant and Equipment | ||
Beginning balance | 45,160,365 | 43,949,632 |
Ending balance | 46,791,386 | 45,160,365 |
Cost | Work in progress | ||
Property, Plant and Equipment | ||
Beginning balance | 10,373,151 | 1,603,915 |
Ending balance | 14,931,095 | 10,373,151 |
Cost | Other | ||
Property, Plant and Equipment | ||
Beginning balance | 1,281,328 | 1,104,601 |
Ending balance | 1,347,625 | 1,281,328 |
Depreciation | ||
Property, Plant and Equipment | ||
Beginning balance | (30,289,493) | (27,695,365) |
Ending balance | (31,628,198) | (30,289,493) |
Depreciation | Buildings | ||
Property, Plant and Equipment | ||
Beginning balance | (3,879,898) | (3,577,097) |
Ending balance | (4,000,798) | (3,879,898) |
Depreciation | Machinery and equipment and facilities | ||
Property, Plant and Equipment | ||
Beginning balance | (25,541,712) | (23,344,836) |
Ending balance | (26,704,402) | (25,541,712) |
Depreciation | Other | ||
Property, Plant and Equipment | ||
Beginning balance | (867,883) | (773,432) |
Ending balance | R$ 922998 | R$ 867883 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT - Other disclosures (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment | ||
Property, plant and equipment pledged as collateral | R$ 12856211 | R$ 12773662 |
Property, plant and equipment, interest costs capitalized | R$ 511650 | R$ 359407 |
Average monthly rate of interest capitalization | 11.78% | 12.49% |
INTANGIBLE - Goodwill and intan
INTANGIBLE - Goodwill and intangible assets with indefinite useful life (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
INTANGIBLE | ||
Goodwill | R$ 233228 | R$ 233399 |
Other | 4,018 | 3,405 |
Goodwill and intangible assets with indefinite useful life | 8,203,199 | 8,019,788 |
Facepa | ||
INTANGIBLE | ||
Goodwill | 119,332 | 119,332 |
Fibria | ||
INTANGIBLE | ||
Goodwill | 7,897,051 | R$ 7897051 |
MMC Brasil | ||
INTANGIBLE | ||
Goodwill | R$ 182798 |
INTANGIBLE - Changes in intangi
INTANGIBLE - Changes in intangible assets with limited useful lives (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Intangible assets with determined useful life | ||
Opening balance | R$ 7173183 | R$ 8014740 |
Additions | 197 | 90,499 |
Fair value adjustment MMC Brasil | 189,655 | |
Write-offs | (51) | |
Amortization | (489,650) | (966,796) |
Transfers and others | 35,563 | 34,791 |
Closing balance | R$ 6908948 | R$ 7173183 |
INTANGIBLE - Intangible assets
INTANGIBLE - Intangible assets with limited useful life by type (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTANGIBLE | |||
Intangible assets | R$ 6908948 | R$ 7173183 | R$ 8014740 |
Non-competition agreements | |||
INTANGIBLE | |||
Average rate % | 5% | ||
Intangible assets | R$ 4971 | 5,128 | |
Port concessions | |||
INTANGIBLE | |||
Average rate % | 4.30% | ||
Intangible assets | R$ 547242 | 554,832 | |
Lease agreements | |||
INTANGIBLE | |||
Average rate % | 16.90% | ||
Intangible assets | R$ 10624 | 14,374 | |
Supplier agreements, 12.90% | |||
INTANGIBLE | |||
Average rate % | 12.90% | ||
Intangible assets | R$ 48146 | 55,554 | |
Supplier agreements, 17.60% | |||
INTANGIBLE | |||
Average rate % | 17.60% | ||
Intangible assets | R$ 16142 | 21,427 | |
Port service contracts | |||
INTANGIBLE | |||
Average rate % | 4.20% | ||
Intangible assets | R$ 564501 | 579,289 | |
Cultivars | |||
INTANGIBLE | |||
Average rate % | 14.30% | ||
Intangible assets | R$ 50980 | 61,176 | |
Trademarks and patents | |||
INTANGIBLE | |||
Average rate % | 9.05% | ||
Intangible assets | R$ 199024 | 10,935 | |
Customer portfolio | |||
INTANGIBLE | |||
Average rate % | 9.10% | ||
Intangible assets | R$ 5336369 | 5,746,860 | |
Software | |||
INTANGIBLE | |||
Average rate % | 20% | ||
Intangible assets | R$ 122013 | 113,946 | |
Other | |||
INTANGIBLE | |||
Average rate % | 5.75% | ||
Intangible assets | R$ 8936 | 9,662 | |
Cost | |||
INTANGIBLE | |||
Intangible assets | 12,229,915 | 12,004,503 | |
Amortization | |||
INTANGIBLE | |||
Intangible assets | R$ 5320967 | R$ 4831320 |
TRADE ACCOUNTS PAYABLE (Details
TRADE ACCOUNTS PAYABLE (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Trade accounts payable | ||
Trade accounts payable | R$ 6347954 | R$ 6206570 |
Domestic (Brazil) | Related party | ||
Trade accounts payable | ||
Trade accounts payable | 13,161 | 3,776 |
Domestic (Brazil) | Third party | ||
Trade accounts payable | ||
Trade accounts payable | 4,305,857 | 4,171,988 |
Trade accounts payables balances subject to factoring at the exclusive option of certain suppliers | 243,229 | 416,643 |
Domestic (Brazil) | Third party | Cerrado Project | ||
Trade accounts payable | ||
Trade accounts payable | 988,892 | 625,645 |
Foreign | Third party | ||
Trade accounts payable | ||
Trade accounts payable | 2,028,936 | 2,030,806 |
Foreign | Third party | Cerrado Project | ||
Trade accounts payable | ||
Trade accounts payable | R$ 1656702 | R$ 1370833 |
LOANS, FINANCING AND DEBENTUR_3
LOANS, FINANCING AND DEBENTURES - Breakdown by type (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
LOANS, FINANCING AND DEBENTURES | |||
Current loans, financing and debentures | R$ 5532543 | R$ 3335029 | |
Non-current loans, financing and debentures | 68,999,788 | 71,239,562 | |
Total loans, financing and debentures | 74,532,331 | 74,574,591 | R$ 79628629 |
Foreign | |||
LOANS, FINANCING AND DEBENTURES | |||
Current loans, financing and debentures | 2,612,233 | 1,107,157 | |
Non-current loans, financing and debentures | 57,553,563 | 60,110,567 | |
Total loans, financing and debentures | R$ 60165796 | 61,217,724 | |
Foreign | BNDES | UMBNDES | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.40% | ||
Current loans, financing and debentures | R$ 4174 | 11,207 | |
Total loans, financing and debentures | 4,174 | 11,207 | |
Foreign | Bonds | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current loans, financing and debentures | R$ 39928218 | ||
Foreign | Bonds | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5% | ||
Current loans, financing and debentures | R$ 832242 | 907,059 | |
Non-current loans, financing and debentures | 39,928,218 | 43,218,286 | |
Total loans, financing and debentures | 40,760,460 | 44,125,345 | |
Foreign | Export credits ("export prepayments") | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current loans, financing and debentures | R$ 14597783 | ||
Foreign | Export credits ("export prepayments") | LIBOR/Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 6.20% | ||
Current loans, financing and debentures | R$ 1719005 | 156,156 | |
Non-current loans, financing and debentures | 14,597,783 | 16,779,064 | |
Total loans, financing and debentures | 16,316,788 | 16,935,220 | |
Foreign | Assets financing | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current loans, financing and debentures | R$ 177526 | ||
Foreign | Assets financing | SOFR | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 3.60% | ||
Current loans, financing and debentures | R$ 44320 | 26,755 | |
Non-current loans, financing and debentures | 177,526 | 113,217 | |
Total loans, financing and debentures | 221,846 | 139,972 | |
Foreign | IFC - International Finance Corporation | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current loans, financing and debentures | R$ 2850036 | ||
Foreign | IFC - International Finance Corporation | SOFR | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 5.90% | ||
Current loans, financing and debentures | R$ 1845 | ||
Non-current loans, financing and debentures | 2,850,036 | ||
Total loans, financing and debentures | 2,851,881 | ||
Foreign | Others | |||
LOANS, FINANCING AND DEBENTURES | |||
Current loans, financing and debentures | 10,647 | 5,980 | |
Total loans, financing and debentures | 10,647 | 5,980 | |
Domestic (Brazil) | |||
LOANS, FINANCING AND DEBENTURES | |||
Current loans, financing and debentures | 2,920,310 | 2,227,872 | |
Non-current loans, financing and debentures | 11,446,225 | 11,128,995 | |
Total loans, financing and debentures | R$ 14366535 | 13,356,867 | |
Domestic (Brazil) | BNDES | TJLP | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 8.40% | ||
Current loans, financing and debentures | R$ 55034 | 69,495 | |
Non-current loans, financing and debentures | 221,302 | 246,004 | |
Total loans, financing and debentures | R$ 276336 | 315,499 | |
Domestic (Brazil) | BNDES | TLP | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 10.70% | ||
Current loans, financing and debentures | R$ 53908 | 41,640 | |
Non-current loans, financing and debentures | 2,346,197 | 1,775,991 | |
Total loans, financing and debentures | R$ 2400105 | 1,817,631 | |
Domestic (Brazil) | BNDES | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 4.50% | ||
Current loans, financing and debentures | R$ 8563 | 18,666 | |
Non-current loans, financing and debentures | 2,004 | 4,011 | |
Total loans, financing and debentures | R$ 10567 | 22,677 | |
Domestic (Brazil) | BNDES | SELIC | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 13.30% | ||
Current loans, financing and debentures | R$ 67951 | 67,115 | |
Non-current loans, financing and debentures | 836,034 | 814,320 | |
Total loans, financing and debentures | R$ 903985 | 881,435 | |
Domestic (Brazil) | CRA ("Agribusiness Receivables Certificates") | CDI/IPCA | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 9.60% | ||
Current loans, financing and debentures | R$ 1269990 | 1,829,966 | |
Total loans, financing and debentures | 1,269,990 | 1,829,966 | |
Domestic (Brazil) | NCE ("Export Credit Notes") | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current loans, financing and debentures | R$ 1378261 | ||
Domestic (Brazil) | NCE ("Export Credit Notes") | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 11% | ||
Current loans, financing and debentures | R$ 78548 | 76,463 | |
Non-current loans, financing and debentures | 1,378,261 | 1,277,616 | |
Total loans, financing and debentures | 1,456,809 | 1,354,079 | |
Domestic (Brazil) | NCR ("Rural producer certificates") | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current loans, financing and debentures | R$ 274265 | ||
Domestic (Brazil) | NCR ("Rural producer certificates") | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 10.70% | ||
Current loans, financing and debentures | R$ 12981 | 13,144 | |
Non-current loans, financing and debentures | 274,265 | 274,127 | |
Total loans, financing and debentures | R$ 287246 | 287,271 | |
Domestic (Brazil) | Export credits ("export prepayments") | Fixed | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 8.10% | ||
Current loans, financing and debentures | R$ 1339409 | 77,694 | |
Non-current loans, financing and debentures | 1,315,813 | ||
Total loans, financing and debentures | 1,339,409 | 1,393,507 | |
Domestic (Brazil) | Debentures | |||
LOANS, FINANCING AND DEBENTURES | |||
Non-current loans, financing and debentures | R$ 6388162 | ||
Domestic (Brazil) | Debentures | CDI | |||
LOANS, FINANCING AND DEBENTURES | |||
Annual average interest rate | 11.70% | ||
Current loans, financing and debentures | R$ 33926 | 33,689 | |
Non-current loans, financing and debentures | 6,388,162 | 5,421,113 | |
Total loans, financing and debentures | R$ 6422088 | R$ 5454802 |
LOANS, FINANCING AND DEBENTUR_4
LOANS, FINANCING AND DEBENTURES - Interest and non-current funding (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Current | |||
Interest on financing | R$ 1141837 | R$ 1238623 | |
Non-current funding | 4,390,706 | 2,096,406 | |
Current borrowings | 5,532,543 | 3,335,029 | |
Non-current | |||
Non-current funding | 68,999,788 | 71,239,562 | |
Non-current borrowings | 68,999,788 | 71,239,562 | |
Total | |||
Interest on financing | 1,141,837 | 1,238,623 | |
Non-current funding | 73,390,494 | 73,335,968 | |
Total loans, financing and debentures | R$ 74532331 | R$ 74574591 | R$ 79628629 |
LOANS, FINANCING AND DEBENTUR_5
LOANS, FINANCING AND DEBENTURES - Breakdown by maturity - non current (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | R$ 68999788 | R$ 71239562 |
Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 57,553,563 | 60,110,567 |
Foreign | Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 39,928,218 | |
Foreign | Bonds | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 39,928,218 | 43,218,286 |
Foreign | Export credits ("export prepayments") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 14,597,783 | |
Foreign | Assets financing | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 177,526 | |
Foreign | IFC - International Finance Corporation | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,850,036 | |
Domestic (Brazil) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 11,446,225 | 11,128,995 |
Domestic (Brazil) | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 221,302 | 246,004 |
Domestic (Brazil) | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,346,197 | 1,775,991 |
Domestic (Brazil) | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,004 | 4,011 |
Domestic (Brazil) | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 836,034 | 814,320 |
Domestic (Brazil) | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 1,378,261 | |
Domestic (Brazil) | NCR ("Rural producer certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 274,265 | |
Domestic (Brazil) | Export credits ("export prepayments") | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | R$ 1315813 | |
Domestic (Brazil) | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 6,388,162 | |
2024 | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 997,130 | |
2024 | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 922,946 | |
2024 | Foreign | Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 5,970 | |
2024 | Foreign | Export credits ("export prepayments") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 894,202 | |
2024 | Foreign | Assets financing | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 22,774 | |
2024 | Domestic (Brazil) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 74,184 | |
2024 | Domestic (Brazil) | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 22,052 | |
2024 | Domestic (Brazil) | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 21,408 | |
2024 | Domestic (Brazil) | BNDES | Fixed | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,004 | |
2024 | Domestic (Brazil) | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 28,720 | |
2025 | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 10,438,101 | |
2025 | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 6,942,389 | |
2025 | Foreign | Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 1,640,973 | |
2025 | Foreign | Export credits ("export prepayments") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 5,254,429 | |
2025 | Foreign | Assets financing | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 46,987 | |
2025 | Domestic (Brazil) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 3,495,712 | |
2025 | Domestic (Brazil) | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 98,809 | |
2025 | Domestic (Brazil) | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 60,963 | |
2025 | Domestic (Brazil) | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 217,090 | |
2025 | Domestic (Brazil) | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 640,800 | |
2025 | Domestic (Brazil) | NCR ("Rural producer certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 137,500 | |
2025 | Domestic (Brazil) | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,340,550 | |
2026 | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 10,691,679 | |
2026 | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 7,200,399 | |
2026 | Foreign | Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,495,454 | |
2026 | Foreign | Export credits ("export prepayments") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 4,656,085 | |
2026 | Foreign | Assets financing | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 48,860 | |
2026 | Domestic (Brazil) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 3,491,280 | |
2026 | Domestic (Brazil) | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 85,571 | |
2026 | Domestic (Brazil) | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 80,573 | |
2026 | Domestic (Brazil) | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 217,135 | |
2026 | Domestic (Brazil) | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 637,460 | |
2026 | Domestic (Brazil) | NCR ("Rural producer certificates") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 136,765 | |
2026 | Domestic (Brazil) | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,333,776 | |
2027 | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 7,580,546 | |
2027 | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 7,379,127 | |
2027 | Foreign | Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 3,350,524 | |
2027 | Foreign | Export credits ("export prepayments") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 3,793,067 | |
2027 | Foreign | Assets financing | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 48,123 | |
2027 | Foreign | IFC - International Finance Corporation | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 187,413 | |
2027 | Domestic (Brazil) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 201,419 | |
2027 | Domestic (Brazil) | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 7,090 | |
2027 | Domestic (Brazil) | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 141,272 | |
2027 | Domestic (Brazil) | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 28,057 | |
2027 | Domestic (Brazil) | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 25,000 | |
2028 | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 4,243,940 | |
2028 | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 3,300,502 | |
2028 | Foreign | Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 2,406,200 | |
2028 | Foreign | Assets financing | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 10,782 | |
2028 | Foreign | IFC - International Finance Corporation | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 883,520 | |
2028 | Domestic (Brazil) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 943,438 | |
2028 | Domestic (Brazil) | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 3,590 | |
2028 | Domestic (Brazil) | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 138,439 | |
2028 | Domestic (Brazil) | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 28,103 | |
2028 | Domestic (Brazil) | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 25,000 | |
2028 | Domestic (Brazil) | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 748,306 | |
2029 onwards | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 35,048,392 | |
2029 onwards | Foreign | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 31,808,200 | |
2029 onwards | Foreign | Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 30,029,097 | |
2029 onwards | Foreign | IFC - International Finance Corporation | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 1,779,103 | |
2029 onwards | Domestic (Brazil) | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 3,240,192 | |
2029 onwards | Domestic (Brazil) | BNDES | TJLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 4,190 | |
2029 onwards | Domestic (Brazil) | BNDES | TLP | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 1,903,542 | |
2029 onwards | Domestic (Brazil) | BNDES | SELIC | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 316,929 | |
2029 onwards | Domestic (Brazil) | NCE ("Export Credit Notes") | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | 50,001 | |
2029 onwards | Domestic (Brazil) | Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Non-current loans, financing and debentures | R$ 965530 |
LOANS, FINANCING AND DEBENTUR_6
LOANS, FINANCING AND DEBENTURES - Rollforward in loans, financing and debentures (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
LOANS, FINANCING AND DEBENTURES | ||
Opening balance | R$ 74574591 | R$ 79628629 |
Fundraising, net of issuance costs | 5,276,816 | 1,335,715 |
Interest accrued | 2,309,587 | 4,007,737 |
Monetary and exchange rate variation, net | (4,543,048) | (3,949,020) |
Settlement of principal | (765,533) | (2,517,934) |
Settlement of interest | (2,352,484) | (4,019,072) |
Amortization of fundraising costs | 32,402 | 69,649 |
Others (fair value adjustments on business combinations) | 18,887 | |
Closing balance | R$ 74532331 | R$ 74574591 |
LOANS, FINANCING AND DEBENTUR_7
LOANS, FINANCING AND DEBENTURES - Breakdown by currency (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | R$ 74532331 | R$ 74574591 | R$ 79628629 |
Brazilian Reais | |||
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | 14,355,349 | 13,347,244 | |
US Dollars | |||
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | 60,172,808 | 61,216,140 | |
Currency basket | |||
LOANS, FINANCING AND DEBENTURES | |||
Borrowings | R$ 4174 | R$ 11207 |
LOANS, FINANCING AND DEBENTUR_8
LOANS, FINANCING AND DEBENTURES - Fundraising costs (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
LOANS, FINANCING AND DEBENTURES | ||
Cost | R$ 934796 | |
Amortization | 594,690 | |
Balance to be amortized | 340,106 | R$ 320053 |
Bonds | ||
LOANS, FINANCING AND DEBENTURES | ||
Cost | 434,970 | |
Amortization | 255,182 | |
Balance to be amortized | 179,788 | 210,822 |
CRA and NCE | ||
LOANS, FINANCING AND DEBENTURES | ||
Cost | 125,222 | |
Amortization | 119,769 | |
Balance to be amortized | 5,453 | 10,838 |
Export credits ("export prepayments") | ||
LOANS, FINANCING AND DEBENTURES | ||
Cost | 191,710 | |
Amortization | 132,897 | |
Balance to be amortized | 58,813 | 75,520 |
Debentures | ||
LOANS, FINANCING AND DEBENTURES | ||
Cost | 59,216 | |
Amortization | 16,279 | |
Balance to be amortized | 42,937 | 9,984 |
BNDES | ||
LOANS, FINANCING AND DEBENTURES | ||
Cost | 63,588 | |
Amortization | 52,692 | |
Balance to be amortized | 10,896 | 12,016 |
IFC - International Finance Corporation | ||
LOANS, FINANCING AND DEBENTURES | ||
Cost | 41,943 | |
Amortization | 459 | |
Balance to be amortized | 41,484 | |
Others | ||
LOANS, FINANCING AND DEBENTURES | ||
Cost | 18,147 | |
Amortization | 17,412 | |
Balance to be amortized | R$ 735 | R$ 873 |
LOANS, FINANCING AND DEBENTUR_9
LOANS, FINANCING AND DEBENTURES - Relevant transactions entered into during the period (Details) R$ in Thousands, $ in Thousands | Jun. 29, 2023 BRL (R$) | Jun. 27, 2023 BRL (R$) | Dec. 22, 2022 USD ($) | Jun. 21, 2023 USD ($) | Jun. 21, 2023 BRL (R$) | May 19, 2023 USD ($) | May 19, 2023 BRL (R$) | Dec. 22, 2022 BRL (R$) |
BNDES funds raised | BNDES | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | R$ 500000 | |||||||
Principal grace period | 7 years | |||||||
BNDES funds raised | BNDES | TLP | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Interest rate basis | Long-Term Rate (“TLP”), plus a fixed interest rate of 5.23% p.a | |||||||
Basis spread (as a percent) | 5.23% | |||||||
New credit line obtained | International Finance Corporation (IFC) A&B Loan | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | $ 600,000 | R$ 2891520 | ||||||
New credit line obtained | International Finance Corporation (IFC) A-Loan | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | $ 250,000 | R$ 1204800 | ||||||
Debt instrument term | 8 years | |||||||
Principal grace period | 6 years | |||||||
New credit line obtained | International Finance Corporation (IFC) A-Loan | SOFR | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Interest rate basis | Term SOFR + 1.80% p.a. | |||||||
Basis spread (as a percent) | 1.80% | 1.80% | ||||||
New credit line obtained | International Finance Corporation (IFC) B-Loan | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | $ 350,000 | R$ 1686720 | ||||||
Debt instrument term | 7 years | |||||||
Principal grace period | 5 years | |||||||
New credit line obtained | International Finance Corporation (IFC) B-Loan | SOFR | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Interest rate basis | Term SOFR + 1.60% p.a. | |||||||
Basis spread (as a percent) | 1.60% | 1.60% | ||||||
Advance of exchange contract ("ACC") | BNP Paribas | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | $ 35,000 | R$ 168672 | $ 100,000 | R$ 481920 | ||||
Advance of exchange contract ("ACC") | BNP Paribas | Fixed | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Interest rate | 6.52% | 6.52% | 6% | 6% | ||||
Issuance of debenture | Debentures | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | R$ 1000000 | |||||||
Issuance of debenture | Debenture, IPCA + 6.0188% p.a. | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | R$ 500000 | |||||||
Debt instrument term | 7 years | |||||||
Issuance of debenture | Debenture, IPCA + 6.0188% p.a. | IPCA | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Interest rate basis | IPCA + 6.0188% p.a. | |||||||
Basis spread (as a percent) | 6.0188% | |||||||
Issuance of debenture | Debenture, IPCA + 6.2477% p.a. | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Principle amount | R$ 500000 | |||||||
Debt instrument term | 10 years | |||||||
Issuance of debenture | Debenture, IPCA + 6.2477% p.a. | IPCA | ||||||||
LOANS, FINANCING AND DEBENTURES | ||||||||
Interest rate basis | IPCA + 6.2477% p.a. | |||||||
Basis spread (as a percent) | 6.2477% |
LOANS, FINANCING AND DEBENTU_10
LOANS, FINANCING AND DEBENTURES - Significant transactions settled during the period (Details) - CRA Settlement - CRA contract R$ in Thousands | Jun. 22, 2023 BRL (R$) |
LOANS, FINANCING AND DEBENTURES | |
Transaction amount settled | R$ 685239 |
IPCA | |
LOANS, FINANCING AND DEBENTURES | |
Interest rate basis | IPCA + 5.9844% |
Basis spread (as a percent) | 5.9844% |
LEASES - Right of use assets (D
LEASES - Right of use assets (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Right of use assets | ||
Beginning balance | R$ 5109226 | R$ 4794023 |
Additions/updates | 455,252 | 982,680 |
Depreciation | (333,635) | (592,451) |
Write-offs | (54) | (75,026) |
Ending balance | 5,230,789 | 5,109,226 |
Lands | ||
Right of use assets | ||
Beginning balance | 3,283,156 | 2,868,411 |
Additions/updates | 290,722 | 849,996 |
Depreciation | (188,802) | (360,225) |
Write-offs | (54) | (75,026) |
Ending balance | 3,385,022 | 3,283,156 |
Machinery and equipment | ||
Right of use assets | ||
Beginning balance | 112,553 | 86,464 |
Additions/updates | 85,493 | 66,821 |
Depreciation | (51,778) | (40,732) |
Ending balance | 146,268 | 112,553 |
Buildings | ||
Right of use assets | ||
Beginning balance | 85,756 | 88,410 |
Additions/updates | 78,547 | 61,647 |
Depreciation | (29,419) | (64,301) |
Ending balance | 134,884 | 85,756 |
Ships and boats | ||
Right of use assets | ||
Beginning balance | 1,623,118 | 1,748,008 |
Depreciation | (62,445) | (124,890) |
Ending balance | 1,560,673 | 1,623,118 |
Vehicles | ||
Right of use assets | ||
Beginning balance | 4,643 | 2,730 |
Additions/updates | 490 | 4,216 |
Depreciation | (1,191) | (2,303) |
Ending balance | R$ 3942 | R$ 4643 |
LEASES - Lease liabilities (Det
LEASES - Lease liabilities (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Lease Liabilities | |||
Present value of liabilities | R$ 6195984 | R$ 6182530 | R$ 5893194 |
Lands and farms | |||
Lease Liabilities | |||
Average rate - % p.a. | 12.52% | ||
Present value of liabilities | R$ 3673964 | ||
Machinery and equipment | |||
Lease Liabilities | |||
Average rate - % p.a. | 11.43% | ||
Present value of liabilities | R$ 217381 | ||
Buildings | |||
Lease Liabilities | |||
Average rate - % p.a. | 10.84% | ||
Present value of liabilities | R$ 122556 | ||
Ships and boats | |||
Lease Liabilities | |||
Average rate - % p.a. | 11.39% | ||
Present value of liabilities | R$ 2178580 | ||
Vehicles | |||
Lease Liabilities | |||
Average rate - % p.a. | 10.83% | ||
Present value of liabilities | R$ 3503 |
LEASES - Changes in lease liabi
LEASES - Changes in lease liabilities (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Lease Liabilities | ||
Opening balance | R$ 6182530 | R$ 5893194 |
Additions | 455,252 | 982,680 |
Write-offs | (54) | (75,026) |
Payments | (577,132) | (1,044,119) |
Accrual of financial charges | 327,374 | 612,042 |
Exchange rate variation | (191,986) | (186,241) |
Closing balance | 6,195,984 | 6,182,530 |
Current | 710,906 | 672,174 |
Non-current | 5,485,078 | 5,510,356 |
Leased Land | Biological assets | ||
Lease Liabilities | ||
Capitalized interest | R$ 104137 | R$ 178429 |
LEASES - Amounts recognized in
LEASES - Amounts recognized in the statement of income for the year (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
LEASES | ||
Expenses relating to short-term assets | R$ 5559 | R$ 1038 |
Expenses relating to low-value assets | 946 | 571 |
Total amount recognized | R$ 6505 | R$ 1609 |
PROVISION FOR JUDICIAL LIABIL_3
PROVISION FOR JUDICIAL LIABILITIES - Roll-forward and changes in the provision for probable losses, net of judicial deposits (Details) R$ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 BRL (R$) lawsuit | Dec. 31, 2022 BRL (R$) lawsuit | |
Probable losses | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provision balance at the beginning of the period | R$ 3440154 | R$ 3433154 |
Payments | (24,899) | (79,961) |
Write-off | (129,739) | (189,070) |
Additions | 103,281 | 228,432 |
Monetary adjustment | 32,747 | 47,599 |
Provision balance | 3,421,544 | 3,440,154 |
Judicial deposits | (246,464) | (183,844) |
Provision balance at the end of the period | 3,175,080 | 3,256,310 |
Tax and social security | Probable losses | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provision balance at the beginning of the period | 419,915 | 477,096 |
Payments | (1,192) | (14,948) |
Write-off | (4,968) | (71,446) |
Additions | 29,147 | 14,036 |
Monetary adjustment | 13,158 | 15,177 |
Provision balance | 456,060 | 419,915 |
Judicial deposits | (145,567) | (149,951) |
Provision balance at the end of the period | R$ 310493 | R$ 269964 |
Number of administrative proceedings and lawsuits | lawsuit | 30 | 31 |
Labor | Probable losses | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provision balance at the beginning of the period | R$ 255805 | R$ 178925 |
Payments | (22,839) | (44,516) |
Write-off | (28,652) | (53,211) |
Additions | 62,979 | 157,562 |
Monetary adjustment | 10,700 | 17,045 |
Provision balance | 277,993 | 255,805 |
Judicial deposits | (77,101) | (12,270) |
Provision balance at the end of the period | R$ 200892 | R$ 243535 |
Number of lawsuits | lawsuit | 1,176 | 1,176 |
Civil, environment and real estate | Probable losses | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provision balance at the beginning of the period | R$ 118729 | R$ 82592 |
Payments | (868) | (20,497) |
Write-off | (7,507) | (15,577) |
Additions | 11,155 | 56,834 |
Monetary adjustment | 8,889 | 15,377 |
Provision balance | 130,398 | 118,729 |
Judicial deposits | (23,796) | (21,623) |
Provision balance at the end of the period | R$ 106602 | R$ 97106 |
Number of lawsuits | lawsuit | 77 | 66 |
Contingent liabilities assumed | Probable losses | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Provision balance at the beginning of the period | R$ 2645705 | R$ 2694541 |
Write-off | (88,612) | (48,836) |
Provision balance | 2,557,093 | 2,645,705 |
Provision balance at the end of the period | 2,557,093 | 2,645,705 |
Tax contingent liabilities | Possible losses and remote losses | Fibria | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Estimate of possible loss | 2,410,363 | 2,448,564 |
Civil contingent liabilities | Possible losses and remote losses | Fibria | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Estimate of possible loss | R$ 146730 | R$ 197141 |
PROVISION FOR JUDICIAL LIABIL_4
PROVISION FOR JUDICIAL LIABILITIES - Contingencies with possible losses (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | R$ 14417316 | R$ 12937551 |
Fibria | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Fair value adjustment of probable contingencies | 2,537,335 | 2,614,518 |
Taxes and social security | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | 9,211,342 | 8,201,246 |
Labor | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | 224,181 | 321,428 |
Civil and environment | ||
PROVISION FOR JUDICIAL LIABILITIES | ||
Possible losses for which no provision was recorded | R$ 4981793 | R$ 4414877 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Defined benefit plan | |||
Roll-forward of actuarial liability | |||
Opening balance | R$ 691424 | R$ 675158 | R$ 675158 |
Interest on actuarial liabilities | 34,615 | 59,258 | |
Actuarial loss (gain) | 12,231 | ||
Exchange rate variations | (577) | ||
Amount arising from the acquisition of MMC Brasil | 1,457 | ||
Benefits paid | (25,563) | (54,646) | |
Closing balance | 701,933 | R$ 691424 | |
Suzano Prev | |||
EMPLOYEE BENEFIT PLANS | |||
Employer contributions | R$ 8650 | R$ 7308 |
SHARE-BASED COMPENSATION PLAN -
SHARE-BASED COMPENSATION PLAN - Long term compensation plans ("PS and SAR") (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 EquityInstruments item R$ / shares | Dec. 31, 2022 EquityInstruments R$ / shares | |
SHARE-BASED COMPENSATION PLAN | ||
Number of share-based compensation plans | item | 3 | |
PS and SAR | ||
Number of shares | ||
Opening balance | 7,583,185 | 5,415,754 |
Granted during of the period | 3,318,892 | 4,152,200 |
Exercised | (244,464) | (1,474,506) |
Exercised due to resignation | (24,743) | (175,552) |
Abandoned/cancelled due to resignation | (225,126) | (334,711) |
Closing balance | 10,407,744 | 7,583,185 |
Average exercise price | R$ / shares | R$ 47.78 | R$ 48.79 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLAN - Restricted shares plan (Details) - Restricted shares | 6 Months Ended |
Jun. 30, 2023 EquityInstruments R$ / shares | |
SHARE-BASED COMPENSATION PLAN | |
Shares Granted | 487,365 |
Restricted Shares Plan, 2020 | |
SHARE-BASED COMPENSATION PLAN | |
Price on grant date | R$ / shares | R$ 51.70 |
Shares Granted | 111,685 |
Restricted Shares Plan, 2021 | |
SHARE-BASED COMPENSATION PLAN | |
Price on grant date | R$ / shares | R$ 53.81 |
Shares Granted | 113,161 |
Restricted Shares Plan, 2022 | |
SHARE-BASED COMPENSATION PLAN | |
Price on grant date | R$ / shares | R$ 52.00 |
Shares Granted | 101,164 |
Restricted Shares Plan, 2023 | |
SHARE-BASED COMPENSATION PLAN | |
Price on grant date | R$ / shares | R$ 49.58 |
Shares Granted | 161,355 |
SHARE-BASED COMPENSATION PLAN_3
SHARE-BASED COMPENSATION PLAN - Measurement assumptions (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Liabilities and Equity | |||
Non-current liabilities, Provision for phantom stock plan | R$ 183589 | R$ 162117 | |
Equity, Stock options granted | 22,584 | 20,790 | |
Equity, Shares granted | (2,365) | ||
Total effect on equity | 22,584 | R$ 18425 | |
Statement of income and Equity | |||
Non-current liabilities, Provision for phantom stock plan | (32,731) | R$ 31389 | |
Equity, Stock options granted | (4,159) | (2,668) | |
Equity, Shares granted | 2,365 | ||
Total Equity impact | (4,159) | (303) | |
Total income statement effect | R$ 36890 | R$ 31692 |
LIABILITIES FOR ASSETS ACQUIS_3
LIABILITIES FOR ASSETS ACQUISITIONS AND ASSOCIATES (Details) R$ in Thousands, $ in Thousands | Jun. 22, 2023 BRL (R$) | Jun. 22, 2023 USD ($) | Jun. 22, 2022 BRL (R$) | Jun. 22, 2022 USD ($) | Jun. 30, 2023 BRL (R$) | Dec. 31, 2022 BRL (R$) | Mar. 31, 2018 BRL (R$) | Aug. 31, 2014 BRL (R$) |
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | ||||||||
Assets acquisition | R$ 1758365 | |||||||
Business combination | R$ 280864 | 303,957 | ||||||
Liabilities for assets acquisitions and associates | 280,864 | 2,062,322 | ||||||
Current | 101,207 | 1,856,763 | ||||||
Non-current | 179,657 | 205,559 | ||||||
Facepa | ||||||||
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | ||||||||
Business combination | 25,884 | 42,655 | ||||||
Consideration paid | R$ 307876 | |||||||
Cash transferred | R$ 267876 | |||||||
VFFIP | ||||||||
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | ||||||||
Business combination | R$ 254980 | 261,302 | ||||||
Consideration paid | R$ 528941 | |||||||
Cash transferred | R$ 44998 | |||||||
Vitex/Parkia | ||||||||
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | ||||||||
Assets acquisition | R$ 1758365 | |||||||
Total consideration for assets acquisition | R$ 3444255 | $ 667,000 | ||||||
Vitex/Parkia | Purchase and sale agreement, first installment | ||||||||
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | ||||||||
Payment amount for asset acquisition | R$ 1704054 | $ 330,000 | ||||||
Vitex/Parkia | Purchase and sale agreement, second installment | ||||||||
LIABILITIES FOR ASSETS ACQUISITIONS AND SUBSIDIARIES | ||||||||
Payment amount for asset acquisition | R$ 1615140 | $ 337,000 |
SHAREHOLDERS' EQUITY - Share ca
SHAREHOLDERS' EQUITY - Share capital (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | |
SHAREHOLDERS' EQUITY | |||
Share capital | R$ 9235546 | R$ 9235546 | |
Quantity of ordinary shares | 1,324,117,615 | 1,361,263,584 | |
Percentage of ordinary shares | 100% | 100% | |
Maximum number of shares authorized to be issued | 780,119,712 | ||
SUZB3 common shares quoted (per share) | R$ 44.22 | R$ 48.24 | |
Controlling Shareholders | |||
SHAREHOLDERS' EQUITY | |||
Quantity of ordinary shares | 623,929,479 | 622,934,179 | |
Percentage of ordinary shares | 47.12% | 45.76% | |
Suzano Holding S.A. | |||
SHAREHOLDERS' EQUITY | |||
Quantity of ordinary shares | 367,612,329 | 367,612,329 | |
Percentage of ordinary shares | 27.76% | 27.01% | |
Controller | |||
SHAREHOLDERS' EQUITY | |||
Quantity of ordinary shares | 196,064,797 | 195,064,797 | |
Percentage of ordinary shares | 14.81% | 14.33% | |
Managements and related persons | |||
SHAREHOLDERS' EQUITY | |||
Quantity of ordinary shares | 34,097,609 | 34,102,309 | |
Percentage of ordinary shares | 2.57% | 2.51% | |
Alden Fundo de Investimento em Acoes | |||
SHAREHOLDERS' EQUITY | |||
Quantity of ordinary shares | 26,154,744 | 26,154,744 | |
Percentage of ordinary shares | 1.98% | 1.91% | |
Other shareholders | |||
SHAREHOLDERS' EQUITY | |||
Quantity of ordinary shares | 667,721,236 | 686,417,836 | |
Percentage of ordinary shares | 50.43% | 50.43% | |
Share Capital | |||
SHAREHOLDERS' EQUITY | |||
Share capital | R$ 9269281 | R$ 9269281 | |
Quantity of ordinary shares | 1,324,117,615 | ||
Share issuance costs | |||
SHAREHOLDERS' EQUITY | |||
Share issue related cost | R$ 33735 | ||
Treasury shares. | |||
SHAREHOLDERS' EQUITY | |||
Quantity of ordinary shares | 32,466,900 | 51,911,569 | |
Percentage of ordinary shares | 2.45% | 3.81% |
SHAREHOLDERS' EQUITY - Treasury
SHAREHOLDERS' EQUITY - Treasury shares (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Feb. 28, 2023 | Oct. 27, 2022 | Jul. 31, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
SHAREHOLDERS' EQUITY | |||||||
Number of shares held in treasury | 32,466,900 | 51,911,569 | 12,042,004 | ||||
Average cost per share | R$ 42.55 | R$ 40.84 | R$ 18.13 | ||||
Historical value | R$ 1381600 | R$ 2120324 | R$ 218265 | ||||
Market value | R$ 1435686 | R$ 2504214 | R$ 656530 | ||||
Number of shares cancelled | 37,145,969 | 37,145,969 | |||||
Number of shares repurchased | 17,701,300 | 40,000,000 | |||||
Value of shares repurchased | R$ 778500 | R$ 601551 | R$ 1904424 | ||||
Cash effect of shares repurchased | R$ 57448 | R$ 721052 | |||||
Repurchase Program | |||||||
SHAREHOLDERS' EQUITY | |||||||
Number of shares authorized for repurchase | 20,000,000 | ||||||
Share repurchase program maximum term | 18 months |
SHAREHOLDERS' EQUITY - Treasu_2
SHAREHOLDERS' EQUITY - Treasury Shares - Changes (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 6 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Quantity | ||||
Beginning balance | 51,911,569 | 12,042,004 | 12,042,004 | |
Realization in the restricted shares plan | 130,435 | |||
Repurchase | 17,701,300 | 40,000,000 | ||
Canceled | 37,145,969 | 37,145,969 | ||
Ending balance | 32,466,900 | 51,911,569 | ||
Average cost per share | ||||
Beginning balance | R$ 40.84 | R$ 18.13 | R$ 18.13 | |
Realization in the restricted shares plan | 18.13 | |||
Repurchase | 43.98 | 47.61 | ||
Canceled | R$ 40.84 | 40.84 | ||
Ending balance | R$ 42.55 | R$ 40.84 | ||
Historical value | ||||
Beginning balance | R$ 2120324 | R$ 218265 | R$ 218265 | |
Realization in the restricted shares plan | 2,365 | |||
Repurchase | 778,500 | 601,551 | 1,904,424 | |
Canceled | R$ 1517224 | 1,517,224 | ||
Ending balance | 1,381,600 | 2,120,324 | ||
Market value | ||||
Beginning balance | 2,504,214 | R$ 656530 | 656,530 | |
Realization in the restricted shares plan | 8,156 | |||
Repurchase | 778,500 | 1,904,424 | ||
Canceled | 1,570,532 | |||
Beginning balance | R$ 1435686 | R$ 2504214 |
EARNINGS (LOSS) PER SHARE - Bas
EARNINGS (LOSS) PER SHARE - Basic (Details) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic earnings per share | ||||
Resulted of the period attributable to controlling shareholders | R$ 5073127 | R$ 175625 | R$ 10310498 | R$ 10480342 |
Weighted average number of shares in the period - in thousands | 1,336,021 | 1,361,264 | ||
Weighted average treasury shares - in thousands | (26,791) | (14,088) | ||
Weighted average number of outstanding shares - in thousands | 1,309,230 | 1,347,176 | ||
Basic earnings (loss) per common share - R$ | R$ 3.90544 | R$ 0.13057 | R$ 7.87524 | R$ 7.77949 |
EARNINGS (LOSS) PER SHARE - Dil
EARNINGS (LOSS) PER SHARE - Diluted (Details) - BRL (R$) R$ / shares in Units, shares in Thousands, R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Diluted earnings per share | ||||
Resulted of the period attributable to controlling shareholders | R$ 5073127 | R$ 175625 | R$ 10310498 | R$ 10480342 |
Weighted average number of shares during the period (except treasury shares) - in thousands | 1,309,230 | 1,347,176 | ||
Average number of potential shares (stock options) - in thousands | 487 | 215 | ||
Weighted average number of shares (diluted) - in thousands | 1,309,717 | 1,347,391 | ||
Diluted earnings (loss) per common share - R$ | R$ 3.90397 | R$ 0.13054 | R$ 7.87231 | R$ 7.77825 |
EARNINGS (LOSS) PER SHARE - Pro
EARNINGS (LOSS) PER SHARE - Profit reserves (Details) - BRL (R$) R$ in Thousands | 6 Months Ended | |
Apr. 26, 2022 | Jun. 30, 2023 | |
Investment reserve | ||
SHAREHOLDERS' EQUITY | ||
Constitution of reserves | R$ 14972324 | R$ 14972324 |
NET FINANCIAL RESULT (Details)
NET FINANCIAL RESULT (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financial expenses | ||||
Interest on loans, financing and debentures | R$ 1797937 | R$ 1742976 | ||
Amortization of transaction costs | (32,421) | (36,838) | ||
Interest expense on lease liabilities | (223,237) | (210,597) | ||
Amortization of fair value adjustment | (9,452) | |||
Other | (254,471) | (183,660) | ||
Financial expenses | (2,308,066) | (2,183,523) | ||
Financial income | ||||
Cash and cash equivalents and marketable securities | 683,608 | 303,822 | ||
Other | 106,290 | 48,745 | ||
Financial income | 789,898 | 352,567 | ||
Results from derivative financial instruments | ||||
Income | 6,758,955 | 8,653,252 | ||
Expenses | (1,859,936) | (4,032,366) | ||
Results from derivative financial instruments | R$ 2903766 | R$ 1575557 | 4,899,019 | 4,620,886 |
Monetary and exchange rate variations, net | ||||
Exchange rate variation on loans, financing and debentures | 4,543,048 | 3,812,954 | ||
Leases | 191,986 | 176,291 | ||
Other assets and liabilities | (1,110,099) | (818,556) | ||
Monetary and exchange rate variations, net | R$ 2376817 | R$ 4459984 | 3,624,935 | 3,170,689 |
Net financial result | 7,005,786 | 5,960,619 | ||
Capitalized loan costs | 511,650 | 108,972 | ||
Transaction costs for loans and financing | 19 | 39 | ||
Formation cost | R$ 104137 | R$ 84470 |
NET SALES (Details)
NET SALES (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
NET SALES | ||||
Gross sales | R$ 24552121 | R$ 25466749 | ||
Sales deductions | ||||
Returns and cancelations | (65,560) | (42,388) | ||
Discounts and rebates | (3,019,895) | (3,187,446) | ||
Total | 21,466,666 | 22,236,915 | ||
Taxes on sales | (1,030,649) | (974,425) | ||
Net sales | R$ 9159634 | R$ 11519655 | R$ 20436017 | R$ 21262490 |
SEGMENT INFORMATION - Operating
SEGMENT INFORMATION - Operating segment (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
SEGMENT INFORMATION | ||||
Net sales | R$ 9159634 | R$ 11519655 | R$ 20436017 | R$ 21262490 |
EBITDA | 10,968,481 | 11,571,481 | ||
Depreciation, depletion and amortization | (3,593,516) | (3,594,963) | ||
Operating profit before net financial income ("EBIT") | R$ 3068677 | R$ 4587437 | R$ 7374965 | R$ 7976518 |
EBITDA margin (%) | 53.67% | 54.42% | ||
Domestic (Brazil) | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 4221403 | R$ 3836636 | ||
Foreign | ||||
SEGMENT INFORMATION | ||||
Net sales | 16,214,614 | 17,425,854 | ||
Pulp | ||||
SEGMENT INFORMATION | ||||
Net sales | 16,302,347 | 17,496,421 | ||
EBITDA | R$ 9155697 | R$ 10168584 | ||
EBITDA margin (%) | 56.16% | 58.12% | ||
Pulp | Domestic (Brazil) | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 1249493 | R$ 1246965 | ||
Pulp | Foreign | ||||
SEGMENT INFORMATION | ||||
Net sales | 15,052,854 | 16,249,456 | ||
Paper | ||||
SEGMENT INFORMATION | ||||
Net sales | 4,133,670 | 3,766,069 | ||
EBITDA | R$ 1812784 | R$ 1402897 | ||
EBITDA margin (%) | 43.85% | 37.25% | ||
Paper | Domestic (Brazil) | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 2971910 | R$ 2589671 | ||
Paper | Foreign | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 1161760 | R$ 1176398 |
SEGMENT INFORMATION - Net sales
SEGMENT INFORMATION - Net sales by product (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
SEGMENT INFORMATION | ||||
Net sales | R$ 9159634 | R$ 11519655 | R$ 20436017 | R$ 21262490 |
Market pulp | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 16302347 | R$ 17496421 | ||
Fluff pulp | ||||
SEGMENT INFORMATION | ||||
Percentage of total net sales | 0.80% | 0.80% | ||
Printing and writing paper | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 3384698 | R$ 3089666 | ||
Tissue | ||||
SEGMENT INFORMATION | ||||
Percentage of total net sales | 3.10% | 2.50% | ||
Paperboard | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 708576 | R$ 644809 | ||
Other products | ||||
SEGMENT INFORMATION | ||||
Net sales | R$ 40396 | R$ 31594 |
SEGMENT INFORMATION - Goodwill
SEGMENT INFORMATION - Goodwill based on expected future profitability (Details) - BRL (R$) R$ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
SEGMENT INFORMATION | ||
Goodwill based on expected future profitability | R$ 8199181 | R$ 8016383 |
Pulp | ||
SEGMENT INFORMATION | ||
Goodwill based on expected future profitability | 7,897,051 | 7,897,051 |
Paper | ||
SEGMENT INFORMATION | ||
Goodwill based on expected future profitability | R$ 302130 | R$ 119332 |
RESULTS BY NATURE (Details)
RESULTS BY NATURE (Details) - BRL (R$) R$ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cost of sales | |||||
Personnel expenses | R$ 711401 | R$ 652396 | |||
Costs of raw materials, materials and services | (5,336,373) | (5,351,098) | |||
Logistics costs | (2,129,684) | (2,176,264) | |||
Depreciation, depletion and amortization | (3,144,107) | (3,088,132) | |||
Other | (875,290) | (287,875) | |||
Total cost of sales | R$ 6228181 | R$ 6122925 | (12,196,855) | (11,555,765) | |
Selling expenses | |||||
Personnel expenses | (126,331) | (115,604) | |||
Services | (62,108) | (63,133) | |||
Logistics costs | (516,380) | (509,420) | |||
Depreciation and amortization | (475,228) | (474,249) | |||
Other | (51,115) | (35,302) | |||
Total selling expenses | (626,809) | (625,567) | (1,231,162) | (1,197,708) | |
General and Administrative expenses | |||||
Personnel expenses | (489,463) | (437,176) | |||
Services | (171,346) | (142,973) | |||
Depreciation and amortization | (55,014) | (51,639) | |||
Other | (101,620) | (69,444) | |||
Total General and Administrative expenses | (427,208) | (364,768) | (817,443) | (701,232) | |
Other operating (expenses) income net | |||||
Rents and leases | 1,476 | 1,058 | |||
Results from sales of other products, net | 48,312 | 34,723 | |||
Results from sales and disposals of property, plant and equipment, intangible and biological assets, net | (111,195) | 8,041 | |||
Result on fair value adjustment of biological assets | 1,256,315 | 171,618 | R$ 1199759 | ||
Depletion and amortization | 80,833 | 19,057 | |||
Tax credits - ICMS from the PIS/COFINS calculation basis | (1,324) | ||||
Provision for judicial liabilities | (71,878) | (64,300) | |||
Other operating income (expenses), net | (19,874) | (9,447) | |||
Other operating (expenses) income net | R$ 1205293 | R$ 161993 | 1,183,989 | 159,426 | |
Cost of idle capacity and maintenance downtime | R$ 411718 | R$ 368606 |