BRAZIL - In the third quarter of 2020, revenues from sales of Duratex, the largest wood panel manufacturer in the country, totaled BRL 1,778.0 million, an increase of 35.9% compared to the same period of the previous year.

This result is due to the accelerated recovery in demand, which led all divisions to show strong growth in sales volume.

Regarding revenues from the foreign market, the growth rate stood at 59.4%, totaling BRL 329.0 million. This increase was due to the devaluation of the currency in the period, as well as the increase in export volumes. Thus, the participation of the foreign market in total income represented 18.5%.

Despite the impacts derived from the interruption of economic activities in the second quarter, the Company closed the nine months of the year, with a net income of BRL 3,986.1 million, 13.8% higher than the same period in 2019. Exports increased by 15.2% compared to the same period in 2019.

The increase in sales volume, combined with productivity gains, due to the Company's focus on improving its asset management through factory consolidations, portfolio reduction and asset optimization, not only offset cost increases related to exchange rate variations, but also led Duratex to the best operating result in its history. With an increase of 82.2% compared to 3Q19, Adjusted and Recurring EBITDA for the quarter totaled BRL 433.4 million, while the margin closed the period at 24.4%, 6.2 pp above 3Q19.

The Wood Division, thanks to its quick restart process and greater efficiency in customer service, grew more than the market average. The Division's sales revenue totaled BRL 991.8 million, 37.0% higher than 3Q-2019.

The Wood Division shipped 890.3 thousand m³ in the quarter, an increase of 38.5% compared to the third quarter of 2019. This increase is justified by the rapid positioning of the products in the resumption of the market, which, together with the strengthening of customer relations, prompted it to present significant gains in market share in all its product lines. In the foreign market, the increase sales to diversified markets and the resumption of economic activity in Latin American countries, led the Company to significantly increase export volumes, surpassing the growth presented by the market.