BRAZIL – Eucatex reported strong sales growth in 2024, but profits declined compared to the previous year. In the 4Q-2024, sales totaled BRL 753.6 million, a 13.6% increase from BRL 663.1 million in 4Q-2023.

In the Industry and Resale segment, which includes MDP/MDF/THDF panels and Hardboard, revenue grew by 15.7%, mainly due to the sale of a product mix with higher added value and price adjustments in some products.

EBITDA rose by 26.9%, reaching BRL 165.0 million, improving the EBITDA margin to 21.9%, a 2.3 percentage-point increase from 19.6% last year. However, profits fell by 44.8%, totaling BRL 42.1 million, compared to BRL 76.3 million in Q4 2023.

For the full year, sales increased by 6.7%, reaching BRL 2.857.8 million, up from BRL 2.677.6 million in 2023. In the Industry and Resale segment, revenue grew by 2.8% compared to the previous year, but a more significant improvement in revenue throughout 2024 was not observed. This was primarily due to the inventory accumulated at the end of 2022, which was sold in Q1-2023, thus raising the comparison base.

EBITDA for the year grew by 7.7%, totaling BRL 590.3 million, with an EBITDA margin of 20.7%. However, profits decreased by 25.7%, totaling BRL 220.0 million, down from BRL 296.2 million in 2023.