BRAZIL - Duratex, the largest producer of industrialized wood panels and floors, ceramics and sanitary metals in the southern hemisphere, announced to the market its financial results referring to the first quarter (1Q) of 2019.

At the end of the quarter, the Company recorded total sales of BRL 1,072.5 million, an increase of 6.6% with respect to 1Q-2018 (BRL 1,005.9 million) and an adjusted and recurring EBITDA of BRL 179.3 million, with a margin of 17.1%. (1Q-2018: 18.1%).

The Company recorded a recurring net profit in 1Q-2019 of BRL 19.3 million, down 37.5% with respect to 1Q-2018 (BRL 30.8 million).

With respect to the sales volume of the Wood Division, it is important to highlight that in 1Q-2018 the Company owned the hardboard business that was sold on January 31, 2018, according to the relevant fact reported to the market. This business represented a volume of 23.1 thousand m3. Excluding the effect of these, the Wood Division registered an increase of 3% in the volume of panels sold in the first quarter of 2019 in relation to the same period of the previous year.

Sales of the Wood Division totaled BRL 678.1 million in 1Q-2019, an increase of 8% compared to the same period 2018. Excluding the effect of the sale of hardboard, sales grew 12.9% in 1Q-2018. This increase is the result of the good application of the pricing policy, as well as the improvement in the mix of products where laminate board shipments grew 4.5%, going from 244.3 thousand m3 in 1Q-2018 to 255.2 thousand m3 in the 1Q of 2019.

Consolidated investments totaled BRL 80.1 million in the quarter, of which BRL 37.5 million were invested in fixed and intangible assets and BRL 42.5 million in biological assets. The CAPEX projected for 2019 is BRL 525 million, the main focus of investments being the support of manufacturing and forestry operations. Currently, two expansion projects are underway: the capacity increase in ceramic tiles, with a planned investment of BRL 94.0 million, of which BRL 80 million will be disbursed in 2019; and the constitution of a joint venture for the production of soluble pulp, whose progress is evolving within the plan, with some investments already made. The Company is currently working on detailed engineering and environmental licenses.