BRAZIL – Dexco (formerly Duratex), the largest wood panel manufacturer in the country,  reported that sales revenue increased 39.0%  in 2021, and 18.9% in the fourth quarter (4Q-2021) despite a drop in quarterly volume.

As a result, Dexco ended the year with total net revenue of BRL 8,17 billion, the highest figure in its history, and BRL 2,25 billion in the 4Q-2021.

The record results for the year, arising from the improvement in the mix and the pricing pass-through strategy, meant that the Company ended 2021 with Recurring Net Income of R$1,148.2 million, the best result in its history, and more than twice that reported for 2020.

The main highlight of the year was the strong performance by the Wood Division, which exceeded all estimates with respect to the productivity of its operations, achieving 100.0% utilization of all its lines in 4Q-2021. This factor, coupled to the increase in prices and improved mix, led the Division to end the year with an Adjusted and Recurring EBITDA of BRL 1,47 billion, the best result in its history, of which BRL 385.4 million was realized in 4Q-2021, even amid falling volumes in the face of low inventory levels.

The accelerated pace of demand in the panels market in 2021 led to a 10.4% increase in volumes sold versus 2020, despite the 10.8% fall reported in 4Q21 versus 4Q20, due to some clients bringing forward scheduled maintenance shutdowns. As a result, the Division ended the year with having shipped 3,1 million m³, with 757.2 thousand m³ of this figure being shipped in 4Q-2021.

During the year, the Wood Division reviewed its sales strategy, focusing efforts on prioritizing the most profitable channels. This strategy not only boosted sales profitability in the local market but also that of exports, which have begun to deliver competitive margins. This, coupled with the strategy of price increases, resulted in net revenue of BRL 4,7 billion, 46.5% greater than for 2020. BRL 1,31 billion of this revenue was generated in 4Q-2021, representing growth of 23.3% versus 4Q-2020.

Reinforcing the strategy of differentiation, BRL116.9 million was invested during the year in acquiring equipment to expand the panel coatings capacity – with the first new line starting operations in November 2021.

Despite the record results and major changes, 2021 ended in the midst of major challenges, with rises in the cost of the main raw materials, deteriorating macroeconomic scenario, especially with respect to consumer confidence, availability of disposable income and increases in the base interest rate. These factors will likely remain throughout 2022, which is why the Company seeks to further strengthen its management system in order to ensure the best use of its resources.