CHILE – Arauco’s sales revenue reached USD 1,742.4 million during the fourth quarter of 2021 (4Q-2021). For FY 2021, revenues reached USD 6,349.8 million, a USD 1,616.9 million increase when compared to the USD 4,732.9 million of 2020.

Arauco’s net income (profit) was USD 216.3 million in the 4Q-2021. For FY 2021, net income reached USD 1,031.6 million, a USD 1,006.3 million increase when compared to the USD 25.3 million of 2020.

Adjusted EBITDA for 4Q-2021 reached USD 640.4 million. For FY 2021, Adjusted EBITDA reached USD 2,493.4 million a 132.6% increase when compared to the USD 1,071.8 million of 2020.

Revenues from Wooden Panel sales increased in 4Q-2021 when compared to the third quarter, mainly as a result of an 5.6% increase in average prices. This was mostly due to supply issues at the industry level and being able to transfer some of the increases in raw material costs to final consumer prices.

Demand continued at high levels. The foregoing is explained by a strong demand for products of home improvement and remodeling. Arauco observed this for most of its products, such as MDF, PB and mouldings, all of which had price increases.

Sales volume of Plywood increased by 9.7%, partially offset by a decrease in average prices of 5.6%. The demand for plywood continued at high levels, all of this added to logistic difficulties of some of the company’s competitors.

In the 4Q-2021 the biggest single item in CAPEX-related expenditures, were those related to the MAPA project. These expenditures reached approximately USD 246.5 million, 4.5% higher when compared to the USD 236.1 million spent in the MAPA project during the third quarter.

On December 2nd, 2021, Arauco (via its subsidiary Arauco do Brasil), closed and executed a transaction with Stora Enso Amsterdam B.V.  by means of which the latter sold Arauco all of its stock in Arauco Florestal Arapoti S.A. (AFA). The stock sold by Stora Enso to Arauco amounted to approximately 20% of the property of AFA, and the price paid for these stocks reached BRL 294,5 million (USD 51.9 million). Prior to this transaction, Arauco already owned 80% of the property of AFA.

AFA is a forestry company with approximately 49,000 hectares of forestry assets, of which 28,000 correspond to forest plantations. It is located in Paraná, Brasil.