Company: SUZ
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001628280-25-020368
Chunk: 119

Company: Suzano S.A.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 119
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 R$28,802.1 million in 2024 from a gain of R$5,780.9 million in 2023. This decrease occurred largely due to the results of monetary and exchange rate variation, net, in 2024 (loss of R$15,885.0 million in 2024, compared to gain of R$3,087.7 million in 2023), and results from derivative instruments (loss of R$9,112.7 million in 2024, compared to a gain R$5,526.7 million in 2023), in each case as a result of the devaluation of the Brazilian real against the U. S. Dollar.

Income and social contribution taxes

Our total income tax and social contribution was R$6,066.3 million in 2024 from an expense of R$3,890.8 million in 2023. The increase in current tax from 2023 to 2024 was primarily driven by higher consolidated profitability and also due to the impact of changes in Brazil’s pricing transfer rules, which led to greater allocation of taxable income in Brazil, subject to a nominal tax rate of 34%.

Conversely, the variation in deferred tax was mainly due to the recognition of deferred tax assets on foreign exchange and derivatives losses, temporarily non-deductible for income tax and social contribution purposes, as the tax effect is realized only upon cash settlement.

Net income (loss) for the year

Our net income decreased 149.9%, to a loss of R$7,044.7 million in 2024 from a gain of R$14,106.4 million in 2023. This result was due to the factors mentioned above.

B. Liquidity and Capital Resources

Sources and Uses of Funds

Our cash flow from operating, investing and financing activities is affected by various factors. The key factors that affect our cash flow from operations are (i) the volume of product sold and the market price of pulp, (ii) the exchange rate between reais and U. S. dollars and (iii) the cost of our raw materials. Investing activities are mainly affected by (i) our capital expenditure program and (ii) our decision to divest some of our assets, such as fixed assets and biological assets. Finally, our cash flow from financing activities is directly related to the level of new debt we have incurred and on the repayment of existing debt.

In our opinion, we believe that our working capital is sufficient for our