BRAZIL - Eucatex, one of the largest manufacturers of wood panels in Brazil, with operations also in the paint and varnish, laminate flooring, partitions and doors segments, announced its results for the first quarter of 2020 (1Q-2020).

The first quarter of 2020 started with sales growth in practically all of the Company’s products, in line with the prospects of resumption of growth in the Brazilian economy combined with Company planning.

Following the announcement of social distancing measures in mid-March to contain the outbreak of COVID-19, there was a drastic halt in some of the Company’s operating segments, with negative impacts on revenues in March. Despite the challenging scenario, consolidated net sales income grew 3.5% in 1Q20 compared to the same period last year and net revenue totaled BRL 369.0 million, compared to BRL 356.6 million in 1Q-2019, up 3.5%.

In the Wood segment, sales revenue rose 4.1% in 1Q-2020 due to the growth in exports.

While net sales revenue from the Paint segment in 1Q-2020 contracted 3.4% from the same period last year, which however was lower than the decline in physical sales due to the 4.8% uptick in prices.

Recurring EBITDA totaled BRL 67.2 million, up 0.9% from 1Q-2019. Recurring EBITDA Margin reached 18.2%, decreasing 0.5 p.p. from the same period last year. Recurring Net Income, excluding the effect of non-recurring expenses, net of Income Tax, was a loss of BRL 11.3 million.

Investments in 1Q-2020 totaled BRL 43.0 million and were allocated to maintaining the Company’s industrial and forest operations. For 2020, investments of around BRL 136.5 million are planned, representing an increase of 11.3% from 2019, which will be used to acquire a new boiler for the Botucatu Fiberboard unit and the balance allocated to maintain the Company’s factories and its forests.