BRAZIL -Eucatex, one of the largest manufacturers of wooden panels in Brazil, with operations also in the paint and varnish, laminated flooring, partitions and doors segments, announced its results for the fourth quarter of 2019 (4Q-2019).

Sales reached BRL 397.5 million in 4Q-2019, compared to BRL 335.3 million in 4Q-2018. In the Wood segment, quarterly revenue grew by 12.5 percent, positively impacted by the increase in sales volume. Sales in the Paint segment increased 14.6 percent in 4Q-2019 compared to the same period in 2018, resulting from higher sales volume.

Similar performance was registered in 2019 in relation to 2018, with net revenue growing 20.9 percent to BRL 1,525.8 million, from BRL 1,262.3 million. The year’s highlight performance came from the Wood segment, whose revenue increased 19.3 percent, driven by the increase in sales, mainly fiberboard. The Paint segment reported net revenue growth of 11.3 percent compared to 2018, reflecting the increase in prices and sales volume.

Recurring EBITDA totaled BRL 76.6 million in the fourth quarter, up 18.9 percent from 4Q18. Recurring EBITDA Margin reached 19.3 percent, remaining stable from the same period last year.

In 2019, recurring EBITDA amounted to BRL 289.6 million, increasing 24.9 percent from 2018, accompanied by Recurring EBITDA Margin of 19.0 percent (+0.6 p.p.).

Despite the upswing in sales, the drop in the Value of Biological Assets and the increase in Income Tax and Social Contribution in 4Q-2019 had a negative impact on recurring net income, which totaled BRL 24.6 million, a 46.5% decline from 4Q-2018. In 2019, the increase in sales revenue, resulting from the swap of the Botucatu hardboard plant and the recovery in the paint and wood segments, contributed to the positive performance of recurring net income, which totaled BRL 81.1 million, up 47.2 percent from 2018.