BRAZIL - Duratex, the largest manufacturer of wood panels in Brazil, reported that in the first quarter of 2020 (1Q-2020), the company's net sales revenue totaled BRL 1,161.6 million, an increase of 8.3 percent over the same period last year, mainly due to the consolidation of Cecrisa’s results.

It should be noted that with the consolidation and synergy capture process, the result of the Ceramic Tiles Division now represents 15.5 percent of the Company's total net income.

In the quarter, adjusted and recurring EBITDA totaled BRL 200.1 million, an increase of 11.6 percent compared to the first quarter of 2019, due to the improvement of the Wood Division and the consolidation of Cecrisa’s results in the Ceramic Tiles Division. The margin registered in the period was 17.2 percent, in line with that presented in the same period of the previous year.

Net income from the foreign market was BRL 220.3 million, 14.4 percent more than in the first quarter of 2019. The participation of the foreign market in total income represented 19.0 percent, an increase of 1.0 percentage point compared to the same period last year. This growth is explained by the greater variation in the exchange rate in the period, which favored the profitability of the products exported by the Company.

Recurring net income (profit) reached BRL 50.6 million in the quarter, 162.5 percent higher than the same period last year. This result is due to the positive impacts on the variation of the biological asset, due to the verification of the inventory of the forest located in Minas Gerais, the improvement of the results of the Wood Division and consolidation of the results of Cecrisa.