BRAZIL - Duratex, the largest manufacturer of wood panels in Brazil, reported consolidated net sales for the fourth quarter (4Q-2019) of BRL 1,486.2 million, reflecting an increase of 17.6 percent over the same period from last year.

In 2019, net sales totaled BRL 5,011.7 million, an increase of 1.3 percent compared to 2018.

In 4Q-2019, adjusted and recurring EBITDA was BRL 278.3 million, an increase of 17.5 percent compared to the same period of the previous year, justified by the differential resulting from the acquisition of Cecrisa S.A. EBITDA margin was 18.7 percent, stable compared to 4Q-2018.

The adjusted EBITDA in 2019, was BRL 908.9 million, which represents an increase of 7.1 percent compared to 2018. For comparison purposes, it is important to remember that in 2019 Duratex acquired the company Cecrisa, whose results added approximately BRL 45.0 million to Duratex EBITDA.

Recurring net profits reached BRL 275.1 million in 2019 and BRL 157.8 million in 4Q-2019, a higher result than those referred to the same periods in the quarter and the previous year.

The Wood Division directed its efforts in applying its commercial policy and prioritizing the sale of products with higher added value, which led it to end the year with a drop in volumes above the market, however with significant improvement in its profitability.

At the end of 2019 consolidated reductions were observed in all of the Company's corporate environmental indicators. Highlighted especially the reduction of water consumption (37.6 percent) in panels and, consequently, in the generation of effluents (60.7 percent). As previously reported, this reduction occurred mainly in the Panels division due to the transfer of the Duratree line to Eucatex (a highly humid line), in addition to the suspension of activities at the Botucatu (SP) unit, events that took place in the second semester of 2018.