CHILE - Masisa, one of the leading manufacturers of value-added wood boards (MDF and MDP / PB), with forests and production operations in Chile and Venezuela and distribution across the region, presented the results of the first quarter of 2018.
It is important to note that the company presents these results with new functional currency and parity in Venezuela, which allows for reduction of inflation and exchange rate distortions.
Taking that into account, Masisa reported sales of USD 140.3 million in 1Q-2018, which is equivalent to a drop of 9.3% compared to USD 159.6 million in sales reached in the first quarter of 2017.
Consolidated EBITDA in the period reached USD 20.3 million, which compared to the same operations in recurring terms represented a decrease of USD 3.5 million (-14.8%). This decline in consolidated EBITDA is explained by the decrease in Mexico (USD -1.7 million), operation which was sold to Arauco – at an agreed price of USD 245 million - and is in the process of being approved by local authorities. The decline is also explained by a drop of EBITDA in Venezuela (USD -2.0 million) as a result of the effects of the functional currency change and the lower Forestry EBITDA in Argentina (USD - 0.8 million). Chile offset these negative results with an increase in EBITDA of USD 0.9 million.
In 1Q-2018, the Company reached a profit of USD 8.0 million, equivalent to an increase of USD 6.3 million compared to 1Q-2017, mainly explained by the savings in financial expenses as a result of the reduction of debt realized with funds from the disinvestment plan, savings in operational expenses committed to the downsizing plan of the Company and a strong mitigation of accounting distortions generated by hyperinflation in Venezuela and the decision to change the functional currency as of January 1, 2018.
As a result of the divestment process, Masisa's total financial debt decreased by USD 37.3 million compared to December 31, 2017, reaching USD 562.2 million. It is important to note that the reduction of the financial debt since January 2017 reached USD 169.2 million.
