BRAZIL - Dexco (formerly Duratex) reported Net Sales Revenue for the third quarter of 2021 of BRL 2,177.1 million, an increase of 22.4% over the same period in 2020.
Revenue arising from the external market showed an increase of 15.4% in relation to the same period in 2020, in line with the strong recovery of sales at the Colombia unit, which compensated for the lower volumes shipped to the external market due to the increase in international freight costs. Thus, the external market represented 17.4% of total revenue for the quarter.
It should be noted that Dexco’s consecutive record results led the Company to close out the first nine months of 2021 with a total Net Sales Revenue of BRL 5,919.4 million, of which 18.0% came from the external market.
The maintenance of high levels of factory utilization, allied to the capture of price increases and a significant improvement in the mix, more than offset the drop in volumes sold and inflation in the cost of materials, thus delivering Dexco’s strongest results on record, with an Adjusted and Recurring EBITDA of R$604.1 million, 39.3% higher than for 3Q20, the
quarter that held the previous record. The Adjusted and Recurring EBITDA margin for the period was 27.7%, 3.4 p.p more than for 3Q-2020.
This result, added to that reported for the previous quarters of 2021, led to an Adjusted and Recurring EBITDA of BRL 1,600.2 million, a figure higher than any the company has previously reported for a full year. The EBITDA margin for the period was 27.0%.
The record results for the period reflect the successful price increase strategy allied to the improved mix in all Divisions and led to a Recurring Net Income of R$ 267.5 million in 3Q-2021, an increase of 52.3% vs. 3Q-2020.
Year to date, on the back of the Company’s record-breaking performance, Recurring Net Income was BRL 741.2 million, more than double that of the same period in 2020 (BRL 246.8 million).
The brazilian wood panel market ended the third quarter of the year with a volume sold of 2,33 million m3, a fall of 3.3% in MDF sales and of 6.8% in MDP sales, according to IBA (Brazilian Tree Industry) data. This was mainly due to lower levels of inventories in the industry compared to the same period in 2020. This drop reflected in a negative impact of 4.7% in the domestic market and 7.6% in the external market. Dexco, like the sector, ended the quarter with a fall in sales volumes but with record levels of factory utilization and a robust ability to implement prices increases, which led to the best quarter in the Division's history.
