Eucatex wood division reports 31.0% revenue increase in 3Q-2020
BRAZIL – Brazilian wood panel manufacturer Eucatex - also active in the paint and varnish, laminated flooring and doors segments - announced results for the 3rd quarter of 2020 (3Q-2020).
In the wood segment, revenue grew 31% in 3Q-2020 from 3Q-2019, reflecting the higher export volumes.
In contrast to the 2Q-2020, which was marked by actions aimed at maintaining liquidity, which included cutting down production and investments, postponement of payments and operating activities as a whole, 3Q-2020 was marked by the strong recovery of demand across all segment of the Company’s operations in both the domestic and export markets.
Total net sales revenue in 3Q-2020 came to BRL 531.4 million, compared to BRL 398.7 million in 3Q-2019, up 33.3%. In 9M-2020, total net revenue was BRL 1,269.7 million, as against BRL 1,128.3 million in 9M-2019, growing 12.5%.
In 3Q-2020 recurring EBITDA amounted to BRL 117.2 million, growing 57.1% from 3Q-2019. Recurring EBITDA Margin reached 22.0% in 3Q-2020, increasing 3.3 p.p. from the same period last year. In 9M-2020, recurring EBITDA amounted to BRL 248.8 million, up 16.8% from 9M-2019, while recurring EBITDA Margin rose 0.7 p.p.
Investments in 3Q-2020 totaled BRL 43.8 million and were allocated to maintaining the Company’s industrial and forest operations. For 2020, investments of around BRL 136.5 million are planned, 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 to grow and maintain its forests.