BRAZIL - Duratex, the largest wood panel manufacturer in Brazil, reported sales of BRR 901.4 million in the first quarter 2016, with BRR 105.5m coming from the Colombian subsidiary, Tablemac. This represented a 10.0% drop when compared to the first quarter of 2015.

The Company is continuing its program to expand exports in the Wood Division, with the volume increasing 80% in the first quarter of 2016 versus the same period last year. The expectation is that the total volume in 2016 will increase 50% over 2015, following Duratex’s strategy to increase the share of income originating from outside of Brazil, with a view to reducing dependence on the internal market.

Sales by value in the external market – results from Tablemac and from exports – continues to show a good performance, with an increase of 4.9% compared to the 4th quarter of 2015, and of 45.4% compared to the same period in 2015. Representing 20% of Duratex’s Wood Division sales in 1Q/2016.

The Ebitda margin in the first quarter was 11.8%, lower than the 22.1% recorded in the previous quarter, and the 21.4% in the same period in 2015.

The period resulted in a loss of R$29.6m, stemming from a fall in results from operations and an increase in financing costs. This increase in financing costs arose from an increase in interest rates and in the Company’s net indebtedness, partly explained by the sourcing of capital for the share buy-back of Tablemac, which took place in March.

Investments totaled R$152m in the first quarter of 2016, with BRR 66m relating to a Share Buy-Back, held via Tablemac. Thus Duratex now holds 94% of the company’s shares in Colombia.

Duratex Results Juanuary – March 1Q

Million BRR

Duratex Wood Division Volume Shipped

Juanuary – March. Thousand m3