CHILE - Arauco’s sales revenues reached USD 1,705.1 million during the third quarter of 2021 (3Q-2021), 41.7% increase compared to the third quarter of 2020 (3Q-2021: USD 1,202.9).
Adjusted EBITDA reached USD 922.9 million, a 217.5% or USD 632.2 million increase compared to the third quarter of 2020 (3Q-2020: USD 290.7 million). The Adjusted EBITDA margin increased from 24.2% in the 3Q-2020 to 54.1% in the 3Q-2021, an increase of 30 p.p.
For 3Q-2021, a one-time USD 229.4 million effect on Adjusted EBITDA is included in regard to the recently closed forestry asset sale.
Net income (profit) was USD 511.5 million, equivalent to a USD 475.5 million increase compared to the third quarter of 2020 (3Q-2020: USD 36 million).
During the 3Q-2021 capital expenditures reached USD 364.5 million. The biggest single item in CAPEX-related expenditures during this quarter were those related to the MAPA project, reaching approximately
USD 236
During the third quarter, demand for wooden panels continued at high levels. The foregoing is explained by a strong demand for products of home improvement and remodeling. This was observed for most panel products, such as MDF, PB and mouldings.
On October 29, 2021, Arauco announced that they are beginning an Environmental Impact Assessment in Mexico (“Estudio de Manifestación de Impacto Ambiental or “MIA” as it is known in Mexico) as part of the assessment related to the possibility of building a new production line of MDF in Zitácuaro, a city located close to Ciudad de Mexico.
This new MDF line -which contemplates an estimated total investment of USD 200 million- would incorporate state-of- the-art operational and environmental technology. Additionally, its supply aims to foster a circular economy model, supporting small forestry producers and safekeeping the ecosystemic values of that environment.
If all necessary preconditions are met and the necessary permits and approvals are obtained, the company expects to start construction of the new line, and subsequently begin production during 2024.
