BRAZIL - Eucatex, one of the largest manufacturers of panels in Brazil, with operations also in the paint, varnish, laminated flooring and doors segments, announced its results for the 4th quarter of 2020 (4Q-2020).

Total net revenue in 4Q-2020 came to BRL 527.9 million, compared to BRL 397.5 million in 4Q-2019, up 32.8%. In 2020, total net revenue was BRL 1,797.6 million, as against BRL 1,525.8 million in 2019, growing 17.8%.

In the Wood Segment, revenue grew 33.7% in 4Q-2020 from 4Q-2019, reflecting the higher export volumes. The weaker real and higher sale prices in the domestic market helped drive this performance, which were a reaction to the escalating cost increases observed by the Company. Net revenue in 2020 in the Wood Segment rose 12.7% compared to 2019.

Recurring EBITDA amounted to BRL 110.6 million, growing 44.3% from 4Q-2019. Recurring EBITDA Margin reached 20.9% in 4Q-2020, increasing 1.7 p.p. from the same period last year. In 2020, recurring EBITDA amounted to BRL 359.4 million, up 24.1% from 2019, while Recurring EBITDA Margin rose 1 p.p.

Recurring Net Income in 4Q-2020, excluding the effect of non-recurring expenses, net of income tax, amounted to BRL 41.5 million.

Investments in 4Q-2020 and 2020 totaled BRL 32.2 million and BRL 153.4 million, respectively, and were allocated to maintaining the Company’s industrial and forest operations, as well as the strategic acquisition of the wood yard from Duratex for the fiberboard plant and a new press for the MDP plant, both in Botucatu. For 2021, investments of around BRL 175.9 million are planned, an increase of 14.7% from 2020, explained by the significant increase in the volume of new forests.