PORTUGAL – Sonae Indústria’s consolidated sales reached 259 million Euros in the 1Q-2016, an improvement of 3.7% vs. last quarter and 0.4% when compared to same period of 2015.

These results were possible, in both cases, as a result of improved performance in total sales volumes, as the consolidated average selling prices were below the levels of both 1Q15 and 4Q15. When compared to 1Q15, sales volumes increased by 2.4%, mainly driven by higher sales of raw MDF and OSB products.

At the end of March 2016, with a recurrent EBITDA for the quarter of 32 million Euros, up by 7.2 million Euros (or +29%) vs. 1Q15 value. The Recurrent EBITDA margin in the first quarter of the year was of 12.3%, up by 2.8 p.p. compared to same period of last year.

Rui Correia, Sonae Indústria CEO, expressed, “Following the successful completion of the restructuring process and the improving operational performance that we have been delivering in the last eight quarters, we achieved a net profit of 3 million euros in the 1Q16. This is the first positive quarterly net results since 2009, when we sold our subsidiary in Brazil”. And added, “We have also achieved important milestones in the process to complete the strategic partnership signed with Arauco last year, which involves our European and South African operations. In this respect, we have obtained clearance from both the European and the South African Competition Authorities, completed the majority of the required corporate reorganization needed to achieve the agreed business perimeter and have been working towards the fulfillment of the remaining agreed conditions, namely related with refinancing of the group’s debt.”

Sonae Results January – March 1Q

Million EUR