Eldorado Brasil, a J&F Group company, ended 2017 reporting its best operational and financial results in history. Net profits totaled R$ 713 million, 2.5 times what was reported in 2016. Earnings before interest, taxes, depreciation and amortization (EBITDA) was R$ 2.221 billion, with a 66% margin, the largest in the pulp and paper industry.
The company managed to reduce in 32% the net debt to EBITDA ratio, from 4.96x in 2016 to 3.36 at the end of 2017. These results showcase the quality of the company’s assets and of its management team’s performance; a team who is committed to corporate governance focused on consolidating the company and its sustainable growth.
An example of management capacity is its production, which reached 1.708 million tons in 2017, setting a new record. This volume represents an increase of 4% over 2016 and is much higher than the mill’s – which is located in Três Lagoas in Mato Grosso do Sul State – installed capacity of 1.5 million tons. Sales followed the growth pace and reached a record high of 1.721 million tons, 3% higher than the previous year. As for net revenues, the result was R$ 3.3 billion, 13% higher than that reported in 2016.
Sales continued focused on the international market, with Asia, its main destination, accounting for 43% of total sales. Europe, Latin America (including Brazil) and North America represented 31%, 16% and 10% of sales, respectively.
The company’s forestry initiatives were focused on increasing efficiency and reducing costs. Noteworthy is the substantial increase in the use of wood originated from the company’s own forests, resulting in high productivity and a 65 km reduction in the distance between the forests and the mill, entailing a considerable efficiency gain in the operation.
Regarding the pulp market, the Company believes demand will remain solid, supporting the price levels established by the industry and, consequently, allowing the Company to present a robust cash flow in the coming years.