CHILE – Masisa, a leading manufacturer of value-added wood boards (MDF and MDP/PB) in Latin America, presented its 3Q15 results with considerable drops in sales, gross profit and consolidated EBITDA, mainly due to its operations in Venezuela.

Consolidated sales revenue reached USD 250.7 million, a decrease of USD 101.0 million (-28.7%) with its effect on Gross Profit which totaled USD 52.3 million, a decrease of USD 19.2 million (-26.9%). Consolidated EBITDA totaled USD 40.8 million, a drop of USD 4.6 million (-10.2%). The Company explained these decreases as the result of the application of the SIMADI exchange rate for recording foreign currency items and the conversion of the financial statements of their operations in Venezuela in 2015.

CAPEX in 3Q15 was USD 28.7 million (down from 3Q14 when it amounted to USD 32.1 million) mainly due to the CAPEX savings initiatives, distinct from the construction of the new MDF plant in Mexico, which will begin operations in 1Q16.

In September 2015, the Company began to implement a plan to strengthen its financial profile consisting of three core initiatives: the sale of non-strategic assets for at least USD 100 million, a reduction in Capex of USD 18 million in 2015 and USD 38 million in 2016, and a decrease of USD 20 million in working capital. The asset divestment plan is expected to conclude during the second quarter of 2016. The funds arising from this plan will be used to pay off debt.

Roberto Salas, President of Masisa, stated, “2015 has been a year full of major challenges as a result of economic deceleration in most of Latin America. In this context, the anticipatory measures adopted by the company have been crucial in dealing with this situation, through increased financial discretion, the execution of an expense control and reduction plan, an increase in exports and consolidation of our operation in Mexico.”

Given the importance of the SIMADI application, the main variations are shown excluding the figures for the Venezuelan operations, as follows:

During the third quarter of 2015, consolidated sales revenue reached USD 224.8 million, a decrease of USD 37.9 million (-14.4%). This decrease is due to lower sales revenue in Chile and the Andean region, because of the devaluation of local currencies and lower revenue from exports of sawn lumber. The decrease is also partly due to Brazil, mainly because of the exchange rate devaluation and reduced sales revenue because of the economic recession.

Gross earnings (formerly known as gross margin) totaled USD 44.1 million, a decrease of USD 6.2 million (-12.3%). This is because of lower gross earnings in Chile and Brazil, which were partially offset by increased earnings in Argentina and Mexico and molding exports to the United States.

Consolidated EBITDA totaled USD 36.8 million, an increase of USD 1.2 million (+3.4%), mainly explained by higher EBITDA in Argentina of USD 2.4 million and Mexico of USD 1.9 million. This was partially offset by a decrease in EBITDA in Chile and the Andean region of USD 3.4 million, mainly because of local currency devaluation and despite improved MDF molding export performance. EBITDA also decreased slightly by USD 0.4 million in Brazil as a result of exchange rate devaluation.  

Masisa Sales by Destination Country 3Q*

Masisa Sales By Product in 3Q

July-September. Thousand USD