BRASIL – Dexco, the largest wooden panel manufacturer in Brazil, reported Net sales Revenue of BRL 6,506.2 million in the first nine months 2022, an increase of 9.9% versus the same period in 2021, explained by the improvement in Unit Revenue of the divisions and the uptick in exports.

Despite showing consistent growth in Sales Revenue, this was not enough to offset the increase in costs arising from the pressure on manufacturing inputs and lower volumes produced, which led to a quarterly Adjusted and Recurring EBITDA of BRL 415.6 million in the 3Q-2022, 31.2% lower than for the third quarter 2021 (3Q-2021: BRL 604.1 million).

Even in the midst of a weaker market, the Company once again demonstrated the resilience of its operations, especially the Wood Division. The Adjusted and Recurring EBITDA for the first nine months of the year was BRL 1,365.5 million, higher than the annual figures for 2019 and 2020. But 14.7% lower than the same period 2021 (9M-2021: BRL 1,600.2 million).

Dexco 3Q-2022  Recurring Net Income (Profit) fell to BRL 162.9 million, a fall of 39.1% versus 3Q-2021(BRL 267.5 million).

During 9M-2022, the strong impact on operating costs and expenses, led to a recurring Net Income (Profit) of BRL 564.1 million, a decrease of 23.9% versus 9M-2021.

The resilience shown in the Wood Division was the highlight of the quarter, even with a drop of 8.6% and 7.3% in sales volume in 3Q22 and 9M22, respectively, when compared to the same periods in 2021, which was the record for the Division so far. Despite the downturn, the Division increased market share and maintained its position in the external market.

In 3Q-2022 the brazilian wood panels market saw a fall in sales volumes of 9.2% versus 3Q-2021, with the domestic market shrinking 11.5% and exports growing 13.0%, according to data released by IBÁ. Year to date (9M-2022), the IBÁ reports a drop off in sales of 9.6% versus the same period in 2021, with domestic sales falling 14.7% and exports increasing 27.9%.