BRAZIL – Dexco, Brazil’s largest wooden panel manufacturer, reported 2Q-2024 sales of BRL 1,995.4 million, a 2.1% increase compared to 2Q-2023, which was BRL 1,953.8 million.

The company’s total sales for the first half of the year reached BRL 3,931.4 million, reflecting a 7.2% improvement from the previous year’s BRL 3,665.8 million.

In 2Q-2024, Dexco achieved an Adjusted and Recurring EBITDA of BRL 376.5 million, representing a 7.7% increase from BRL 349.7 million in the same period in 2023. The margin for this quarter stood at 18.9%.

The Recurring Net Income for 2Q-2024 was BRL 126.3 million, a significant increase of 41.2% compared to the same period in 2023. In the first half of 2023, Recurring Net Income was 22.8% lower than in the first half of 2023, totaling BRL 153.3 million.

According to data from IBÁ (Brazilian Tree Industry), the Brazilian wooden panels market grew 21.2% in 2Q-2024 compared to 2Q-2023, with strong performance in both domestic and export markets. For the first half of the year, the market increased 19.5% compared to the same period last year.

The Wood Division closed 2Q-2024 with 749,949 m³ in sales, 19.5% of which was allocated to Colombia and export markets. Despite scheduled shutdowns of the MDF lines, which constrained volumes for this product, the company optimized profitability by selling higher-value products. This affected sales volumes early in the quarter but was partially offset in June. As a result, volumes remained steady from 1Q-2024, with a 13.0% increase compared to 2Q-2023, though less than the overall market growth. Year to date, total sales volume is 1,509,018 m³, reflecting a 15.2% increase from the same period last year. Additionally, scheduled factory maintenance this quarter led to a reduction in MDF capacity.

In 2Q-2024, increased volumes and a focus on more profitable products resulted in Net Sales Revenue of BRL 1,233.8 million, consistent with 2Q-2023. However, due to strong demand in the panels market, there were no significant forestry sales this quarter, leading to a drop in Revenue. For first half 2024, the solid performance of both the panels and forestry operations resulted in Net Revenue of BRL 2,566.2 million, a 7.6% increase compared to the same period in 2023.