BRAZIL – Duratex, the largest producer of industrialized wood panels and floors, ceramics and sanitary metals from the southern hemisphere, announced to the market its financial results for 2018.

At the end of the year, the Company recorded a recurring net income of BRL 271.2 million, an increase of 50.1% with respect to 2017 and an adjusted and recurring EBITDA of BRL 848.5 million, with a margin of 18.2%.

Consolidated investments in 2018 were BRL 484.2 of which BRL 254.4 million were in fixed and intangible assets, BRL 187.7 million in biological assets and BRL 42.2 million in capital contributions in group companies.

The main focus of investments continues to be support for manufacturing and forestry operations. Currently, two expansion projects are underway: the capacity increase in ceramic coverings, with expected investment of BRL 94.0 million, of which BRL 10.2 million have already been disbursed; and the creation of a new business for the production of soluble cellulose, whose progress is within the planned framework and where related activities are being carried out in compliance with the preceding conditions for the start of construction, such as obtaining licenses and engineering details. This soluble cellulose project is being developed in partnership with Austrian group Lenzing.

Regarding the Wood Division, the volume of wooden panels shipped in the fourth quarter was of 765.5 thousand m3, growth of 14% in comparison in 4Q17. In the year, there was an increase of 14.5% in shipments, totaling 2.74 million m3 of sales in 2018. An improved scenario of demand and an upward trajectory of market share during the year influenced this growth. The channel of popular furniture stood out among the distribution channels, resulting in a weakening of the product mix in 2018 given that popular furniture in Brazil is essentially produced from uncoated painted raw board. Sales revenue of the Wood Division totaled BRL 847.0 million in the quarter and BRL 3,272.8 million in 2018, with double-digit growth in both periods.

“The acceleration of household consumption, in line with the moderate recovery in the labor market and the positive evolution of the credit market, positively impacted the business environment and our operations. We maintain moderately optimistic expectations for this year 2019, even if they are conditioned by the reforms and adjustments required in the Brazilian economy,” said Henrique Haddad, Director of Administration, Finance and Investor Relations at Duratex.