PORTUGAL - Consolidated sales of Sonae Industria in 2020 reached 201.8 million euros, a reduction of 28.2 million euros compared to the previous year (2019: 230 million euros), which represents a drop of 12.3 percent. This result is explained by lower volumes of North American sales.

Consolidated sales evolution was clearly impacted by the Covid-19 pandemic, with important negative impacts particularly in the second quarter (-32% vs. 2Q-2019), followed by a gradual recovery in 3Q-2020 and especially in 4Q-2020 (-15% y + 4%, respectively, vs. 3Q-2019 and 4Q-2019).

For the second half of the year, consolidated sales reached 106.9 million euros, which represents a decrease of 6.7 million compared to the same period in 2019, mainly due to a net effect of 6.0 million euros for the depreciation of the Canadian dollar against the euro, but by an increase of 12.0 million euros with respect to the first half of 2020.

Recurring EBITDA in 2020 reached 28.0 million euros, an increase of 1.5 million euros compared to 2019. The improvement in recurrent EBITDA compared to the previous year is explained by a reduction in variable and fixed costs, which more than compensated the reduction in consolidated sales.

Net results in 2020 were negative 6.0 million euros which compare with the negative 13.4 million euros net results in 2019. The main drivers for the lower net losses in 2020 when compared to 2019 are the aforementioned improvements in Recurrent EBITDA and the significantly better figure for Provisions and impairment losses. It should be noted that for the second half of 2020, the net results were positive 1.3 million euros, an improvement of 8.5 million euros when compared to the first half of 2020, driven mainly by the significant improvements in the EBITDA of the fully owned businesses (essentially Canada) and in Gains and losses in Joint-Ventures (improved results at Sonae Arauco level).