CHILE - Consolidated revenues from 2Q16 reached USD 223.5 million, which represents USD 75.5 million, a 51.0% increase. Gross profit reached USD 48.6 million, a 78.0% increase over the previous year, and the consolidated EBITDA reached USD 40.4 million, which represents a 6.5% drop over the previous year. The drop in consolidated EBITDA was a result of a lower forestry EBITDA in Chile due to a decrease in the size of the forestry business, and to a lower EBITDA in Argentina resulting from the economic adjustment process, which was partially offset by an increased EBITDA in Brazil resulting from the sale of all forestry land owned by the company.

Regarding the different markets in the region, Masisa highlighted that during the first half of 2016 the new Argentine government has implemented corrective actions and reforms that establish good foundations for strong future economic growth and reduction of the country risk. Meanwhile, Brazil has undertaken a process of political change that is expected to enable the implementation of necessary changes and reforms to reignite its economic growth starting in 2017. Nevertheless, Masisa pointed out that 2016 has been a challenging period for the wood board industry in Latin America due to the economic downtrend and contraction in several markets served by the company, and significant currency devaluation in the region in comparison with the same period from the previous year.

On a financial front, the sales plan for nonstrategic assets continues to move forward and the company had closed transactions for USD 120.8 million by June 30, 2016. The company anticipates that the plan will surpass USD 130 million by the end of 2016. Funds from these sales have been used to pay the financial debt, such as the repurchase of USD 100 million in international bonds in February 2016, in order to improve the company’s debt maturity profile and reduce its refinancing needs and average financial expenses.

The main event of Masisa during the period was the new MDF plant in Durango, Mexico, officially inaugurated on June 14. The project was initiated in 2014 and involved a USD 123 million investment for an MDF board production with capacity of 220,000 m³ per year, a melamine or board coating line with a production capacity of 110,000 m³ and the expansion of the resin plant located in the same complex. This investment will enable Masisa to consolidate their market position and continue to grow as a leader in Latin America. This project is an important part of their growth plan for Mexico, which began with the purchase of the Rexcel assets in 2013.

Masisa Results April-June

USD millions