BRAZIL - Eucatex, one of the largest manufacturers of wooden panels in Brazil, with operations also in the paint and varnish, laminated flooring and doors segments, announced its results for the 2nd quarter of 2020 (2Q-2020).
The Company’s performance in 2Q-2020 was reflected in the actions taken in light of the challenging scenario that began in March 2020, when physical distancing measures were adopted in Brazil and many other countries due to the COVID-19 pandemic.
The declines in April and May were quite sharp for MDF/MDP in the domestic market, at 57% and 29%, respectively, with the sector recovering in June. The retail shutdown and the pursuit of liquidity by companies in the sector led them to cut down orders and reduce inventories in 2Q-2020.
Sales revenue totaled BRL 369.0 million in 2Q-2020, compared to BRL 373.0 in 2Q-2019, down 1.2 percent. First half 2020 sales revenue amounted to BRL 738.2 million compared to BRL 729.5 in first half 2019, up 1.2 percent.
In the Wood segment, sales revenue dropped 19.0% in 2Q-2020, due to the decline in sales volume and worse sales mix when compared to 2Q-2019. Sales revenue in the first half 202020 was 7.9% lower than in the first half 2019.
Recurring EBITDA in 2Q-2020 totaled BRL 64.5 million, down 10.1% from 2Q-2019. Recurring EBITDA Margin reached 17.5% in 2Q-2020, decreasing 1.7 p.p. from the same period last year. In the first half 2020, recurring EBITDA amounted to BRL 131.7 million, down 4.8% from first half 2019, while recurring EBITDA margin fell 1.2 p.p.
In July 2020, with the end of the suspension of work shifts and wages at plants, the Company resumed normal operations.