BRAZIL - The maintenance of high levels of demand in all Divisions, Wood Division in particular, coupled to the strategic price increase policy, propelled Duratex Sales Revenue for the first quarter of 2021 to increase 52.2% in relation to the same period in 2020, totaling BRL 1,768.1 million.

Regarding revenue from external markets it grew 60.5% in the quarter, totaling BRL 353.5 million. This result arose mainly from an increase in export volumes in the Wood Division, which since the beginning of 2020 has been entering new markets and strengthening its position in Latin America, as well as the exchange rate variation of the period. The share of the external market represents 20.0% of the total revenue in the first quarter 2021.

Despite a quarter that saw pressure on the cost of materials across all divisions, high levels of capacity utilization, significant productivity gains and strategic price increases, all ensured that Duratex reported the highest first quarter Adjusted and Recurring EBITDA in its history.

The Company ended the period with an Adjusted and Recurring EBITDA of BRL 495.9 million, 126.1% greater than that reported for 1Q-2020. The EBITDA margin for the period was 28.0%, 9.1 p.p. higher than that reported for 1Q-2020.

The increase in sales of treated products, together with the highly successful strategy for increasing prices, has led the Wood Division to total sales revenues of BRL 1,092.8 million, an increase of 68.6% year-on-year.

It should be noted that due to the levels of demand seen in the first quarter, seeking to continue its uninterrupted service to its portfolio of clients, the Company decided to postpone the usual maintenance shutdowns for the period to the second quarter of the year.