PORTUGAL - Consolidated sales of Sonae Industria in the first quarter of the year reached €54.3 million, a reduction of €5.2 million compared to the same period of last year.

The drop in consolidated sales when compared to 1Q-2017 was essentially driven by a €5.0 million unfavorable exchange rate effect resulting from the depreciation of the Canadian dollar against the euro.

Recurrent EBITDA for the first quarter of the year reached €5.8 million, a reduction of €3.9 million compared to 1Q-2017. The lower Recurrent EBITDA when compared to 1Q-2017 is mainly explained by the reduction in sales, which was only partially offset by the €2.1 million reduction on variable costs, and by a €0.4 million increase in fixed costs.

It should be noted that sales volumes and turnover in local currency at Sonae’s North American business were higher than last year and, although the EBITDA margin in the quarter was lower compared to historical levels, the company expects to see some margin recovery in the next quarters and particularly during the second half of the year.

During the first quarter of 2018 Sonae Indústria once again generated positive net results that stood at EUR 3.8 million.

Founded in 1959 as part of Sonae Group, Sonae Indústria has undergone an expansion process through a combination of organic growth and acquisitions, and has become one of the industry leaders with business units in Europe, North America and South Africa.

In May 2016, Sonae Indústria completed a partnership with Arauco, a company with headquarters in Chile and one of the largest producers of forest resources. As a result of this strategic partnership, Sonae Indústria holds a shareholding of 50% in Sonae Arauco. Additionally, Sonae Indústria retained the full ownership of the wood-based panels business in North America, operated by Tafisa Canada, of the Laminates & Components business and some real estate assets in Europe.