BRAZIL – Eucatex, one of Brazil’s largest panel manufacturers, with operations also in the paint and varnish, laminated flooring, partitions and doors segments, registered net income of BRR 6.4 million in the first quarter of 2017, a 44.8% growth against the same period of 2016. Net revenue in the period grew 2.8% to BRR 283.1 million. Recurring EBITDA came to BRR 45.2 million (+12.4%), with a 16.0% margin. 

Performance in the quarter was supported by higher domestic sales and lower expenses. Domestic sales volume increased 5.9% in the period. “We expect an improvement in domestic business activity and have been preparing for the challenges ahead, by implementing initiatives to increase sales while cutting expenses,” said Executive VP and Investor Relations Officer, José Antônio Goulart de Carvalho. Reflecting the recent adjustments to the Company’s structure, selling and administrative expenses fell 7% from the year-ago period.

Sales volume in the Company’s Wood segment, considering both domestic and export markets, increased by 2.2% in the quarter compared to the same period last year, impacted by lower exports. Revenue from the segment increased 5.5%. Meanwhile, sales volume in the Paints segment was stable compared to the same period in 2016, while revenue grew 3.5%, driven by higher prices (+3.4%) in the segment.

Eucatex S.A. Indústria e Comércio completed 65 years in 2016. It operates five modern plants in Botucatu and Salto (both in São Paulo) and Cabo de Santo Agostinho (Pernambuco), employing 2,455 people. Its products are exported to more than 37 countries.

Eucatex Results

January-March 1Q. Million BRR