BRAZIL – In the first quarter of the year Eucatex reported sales for BRL 356.6, growth of 17.3% when compared to BRL 303.9 million in the same period of the previous year. The activities of Eucatex are grouped into two divisions, Paintings (paints and varnishes) and Wood.

The Wood Division includes panels, where it is one of the largest manufacturers in the country, and the segments of laminate floors, partitions and doors. In this Division, revenues grew 18.8% in 1Q-2019, positively impacted by the increase in sales volume and prices. Well above the performance estimates of the Brazilian market for wood panels made by IBA and Eucatex, which reflect a contraction of 1.0% in 1Q-2019.

The sales volume of the Wood Division, considering both domestic and export markets, increased 12.1% in 1Q-2019 compared to the same period of the previous year, supported by a 14.5% growth in domestic sales. This result was mainly due to the performance of T-HDF / MDF, which exceeded the Company’s expectations.

For the first quarter of the year, Eucatex reported favorable results on all its consolidated indicators. While recurring EBITDA totaled BRL 66.6 million, 29.3% more than in 1Q-2018, recurring EBITDA margin reached 18.7%, compared to 17.0% in the same period of the previous year. Even more noticeable in the quarter was net income growth, which totaled BRL 17.6 million, up 237.8% as compared to 1Q-2018.

Investments in 1Q-2019 totaled BRL 26.3 million and were allocated to the maintenance of the Company’s industrial and forestry operations. By 2019, investments are expected to increase around 7.7% (BRL 119.2 million) in relation to 2018, with a focus on forestry investments and the expansion of the fiberboard plant (Hardboard) in Botucatu, Sao Paulo, which came from the asset swap with Duratex.