SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2020


	June 30, 2020
					Not
	Pulp		Paper		segmented	Total
Net sales	12,862,936		2,113,530			14,976,466
Domestic market (Brazil)	741,568		1,372,423			2,113,991
Foreign market	12,121,368		741,107			12,862,475
Cost of sales	(8,246,527)		(1,362,166)			(9,608,693)
Gross profit	4,616,409		751,364			5,367,773
Gross margin (%)	35.89	%	35.55	%		35.84	%

Operating income (expenses)	(1,179,960)		(323,175)			(1,503,135)
Selling	(875,343)		(186,691)			(1,062,034)
General and administrative	(460,226)		(190,325)			(650,551)
Other operating, net	170,212		42,190			212,402
Income (loss) from associates and joint ventures	(14,603)		11,651			(2,952)

Operating profit before net financial income ("EBIT") (1)	3,436,449		428,189			3,864,638
Operating margin (%)	26.72	%	20.26	%		25.80	%

Financial result, net					(28,101,286)	(28,101,286)
Net income (loss) before taxes	3,436,449		428,189		(28,101,286)	(24,236,648)

Income taxes					8,765,069	8,765,069

Net income (loss) for the period	3,436,449		428,189		(19,336,217)	(15,471,579)
Profit (loss) margin for the period (%)	26.72	%	20.26	%		(103.31)	%
Result of the period attributable to controlling Shareholders	3,436,449		428,189		(19,344,269)	(15,479,631)
Result of the period attributed to non-controlling shareholders					8,052	8,052
Depreciation, depletion and amortization	3,126,528		231,053			3,357,581

Earnings before interest and tax.


	June 30, 2019
					Not
	Pulp		Paper		segmented	Total
Net sales	10,055,757		2,308,324			12,364,081
Domestic market (Brazil)	984,098		1,591,902			2,576,000
Foreign market	9,071,659		716,422			9,788,081
Cost of sales	(8,414,712)		(1,532,300)			(9,947,012)
Gross profit	1,641,045		776,024			2,417,069
Gross margin (%)	16.3	%	33.6	%		19.5	%

Operating income (expenses)	(971,698)		(377,498)			(1,349,196)
Selling	(712,005)		(186,279)			(898,284)
General and administrative	(418,980)		(189,816)			(608,796)
Other operating, net	159,287		(6,972)			152,315
Income from associates and joint ventures			5,569			5,569

Operating profit before net financial income ("EBIT") (1)	669,347		398,526			1,067,873
Operating margin (%)	6.7	%	17.3	%		8.6	%

Financial result, net					(1,857,078)	(1,857,078)
Net income (loss) before taxes	669,347		398,526		(1,857,078)	(789,205)

Income taxes					259,921	259,921

Net income (loss) for the period	669,347		398,526		(1,597,157)	(529,284)
Profit (loss) margin for the period (%)	6.7	%	17.3	%		(4.3)	%
Result of the period attributable to controlling shareholders	669,347		398,526		(1,594,128)	(526,255)
Result of the period attributed to non-controlling shareholders					(3,029)	(3,029)
Depreciation, depletion and amortization	4,455,493		239,955			4,695,448

Earnings before interest and tax.

Schedule of paper net sales by product


	June 30,	June 30,
Products	2020	2019
Market pulp(1)	12,862,936	10,055,757
Printing and writing paper(2)	1,661,611	1,902,733
Paperboard	430,292	382,440
Other	21,627	23,151
Net sales	14,976,466	12,364,081

Revenue from fluff pulp represents (around 0.6% of total net sales) and, therefore, was included in market pulp sales.

Tissue is a recently launched product and its revenues represent less than 2.6% of total net sales. Therefore, it was included in the sales of printing and writing paper.

Goodwill based on expected future profitability


	June 30,	December 31,
	2020	2019
Pulp	7,942,486	7,942,486
Consumer goods	119,332	119,332
	8,061,818	8,061,818