Dexco, Brazil's largest wood panel manufacturer, closed 1Q-2023 with revenue 19.7 percent lower than in the same period of 2022.
Sales revenue reached BRL 1,712.0 million in 1Q-2023 compared to BRL 2,131.0 in 1Q-2022.
2023 started with a downturn in the markets in which Dexco operates, especially in January and February. With the base interest rate at higher levels, the difficulty in accessing credit continues to be a major drag on the sector, along with low consumer confidence indices, which in March showed the fourth consecutive monthly decline on a quarterly moving average, according to data from Fundação Getulio Vargas.
Adjusted and recurring EBITDA closed 1Q-2023 at BRL351.1 million, with a margin of 20.5%, 30.3% lower than that for 1Q-2022.
In the quarter, the total volume shipped by the Wood Division was 646.3 thousand m³, of which 15.9% was shipped to the Colombian operation and to the foreign market, a volume lower than historical, but representing a lower drop than that observed in the market. This decrease was mainly due to the Division's prioritization of markets that offer profit margins comparable to those of Brazil. Total volume shipped was 11.8% lower than in the same period of the previous year, reflecting the weakening of the sector and high levels of client inventories, especially those related to retail, and the traditional maintenance shutdowns carried out in the quarter, which explain the 78.0% capacity utilization in 1Q-2023.
With the downturn in the operating results, Dexco closed out the first quarter of 2023 with Net Income of BRL 109.2 million, a fall of 44.9% versus 1Q-2022.
