CHILE - Masisa S.A., a Chilean manufacturer of wooden boards, presented its financial results for the period ended June 30, 2020.
It should be noted that the results for 2019 and 2020 are affected by the divestments of industrial assets in Mexico in January 2019, and the sale of Chilean forestry assets in June 2020.
Consolidated sales income as of June 2020 was USD 380.0 million, which represented an increase of 76.7 percent or USD 165.0 million compared to the same period of the previous year. This increase is explained by the income in the Chile Forestry Business (USD 231.8 million) as a result of the divestment of Chilean forestry assets carried out in June. Excluding this effect, consolidated sales income would be USD 150.9 million, which represents a negative variation of 29.8 percent or USD 64.2 million compared to June 2019. The latter is explained by the decrease in income in Mexico as a result of the sale of two of the three industrial plants in January 2019 (USD 19.8 million) and the effects of the pandemic associated with COVID-19.
Indeed, a drop in sales of the Wood Panels Business of USD 48.1 million was observed, mainly due to the effect associated with COVID-19. For its part, the Sawn Wood market, which is exported mainly to Asia, showed a decrease in sales revenue of USD 15.5 million affected by COVID-19 since the end of December 2019 and the trade war between the US and China.
The Chile Industrial Commercial Business supplies the local wood panel market, as well as the markets of Peru, Ecuador, Colombia, Bolivia and Central America. Additionally, Chile supplies the MDF molding market to North America and other export markets, such as Asia for sawn wood.
In the Chile Industrial Business, sales volumes of MDP and MDF boards, including MDF moldings, which together constitute the Company's main business, decreased by 12.1%, mainly due to lower exports caused by the health crisis. Sawnwood sales volumes decreased by 37.3%, mainly due to the strong effect of COVID-19 in Asia since the end of 2019.
It should be noted that EBITDA as of June 2020 includes a non-recurring effect of approximately USD 228 million from the sale of Chilean forestry assets.
The net result reached a loss of USD 36.6 million, mainly influenced by lower sales volumes associated with the effects of COVID-19 and the Company's financial burden.