Eldorado Brasil reached all-time highs in 2022, the year it completed 10 years in operation. Net revenue, EBITDA, net income, free cash flow and production recorded the best marks in history, and indebtedness reached its lowest level. The good operational performance and historical prices of eucalyptus pulp were important factors for the company to record the best year in its history.
Annual production was 1.832 million tons, a historic mark for a plant with a nominal capacity of 1.5 million tons. The company sold 1.759 million tons of pulp, with an average net price of US$/t 803, an increase of US$/t 189 (or 31%) compared to 2021.
Net revenue for the year was R$7.538 billion, 25% higher than the previous year. EBITDA (Earnings before interest, taxes, depreciation and amortization) reached BRL 4.563 billion, 30% higher than 2021 figures.
“The year 2022 was marked by the best historical financial results and a new record in pulp production, as a result of the commitment and dedication of our teams,” commented Fernando Storchi, Chief Financial and Investor Relations Officer.
Net income of R$3.534 billion in the year was also a record. Adjusted free cash flow reached R$2.263 billion, which contributed to the reduction of financial debts and led to the lowest leverage level in history, 0.65 times EBITDA. As of December 31, 2022, the company’s net debt was R$2.744 billion, 47% lower than the previous year, reaching another important milestone for the company.
Fourth quarter results
In the fourth quarter of 2022, net revenue was BRL 1.916 billion, which represents an increase of 21.4% compared to the fourth quarter of 2021. Adjusted EBITDA was R$1.217 billion, with a margin of 63.5%.
The last quarter of the year was marked by a net profit of BRL 689 million, compared to a net loss of BRL 648 million in the fourth quarter of 2021. The change is explained by the improvement in international pulp prices and the provision for loss of ICMS that occurred in the same period of the previous year. The average pulp sales price was USD 880/t compared to USD 637/t in the same period last year.
