BRAZIL – Dexco, the largest wooden panel manufacturer in Brazil, ended the second quarter of the year (2Q-2022) with a rise of 12.1% in Net Revenue versus the same period in 2021, mainly arising from sustaining prices and improving the product mix, factors which were sufficient to offset the fall in sales seen over the period.
With this result, the Company closed out the semester with a 16.1% increase in Net Revenue versus the first semester of 2021.
Greater channeling of products to the external market was also an important contributor to the revenue gains in the periods above, especially the sales from the Colombian unit, whose revenue closed 27.4% higher for the quarter and 30.4% higher for the semester, compared to the same periods in 2021. It is important to note that the high cost of international freight, allied to the lower availability of maritime shipping, caused a fall in the volume of exports in 2Q-2022 compared to the prior quarter, a challenge that should ease as these factors stabilize, given the Company’s priority in diversifying its markets and thus building greater robustness to its results.
The pressure on costs in the Wood Division, arising from the large increases in the cost of urea and freight, led Dexco to finish the second quarter with an Adjusted and Recurring EBITDA of BRL 446.3 million, 10.8% lower than for the second quarter of 2021. However, for the semester this decrease was partially offset by the strong results reported in the first quarter of the year, resulting in an Adjusted and Recurring EBITDA of BRL 949.9 million, just 4.6% less than for the first semester of 2021.
Dexco closed out the second quarter of 2022 with Recurring Net Income of BRL 202.9 million, a fall of 19.2% versus 2Q-2021, stemming directly from a dip in operating performance. For the semester, the significant impacts on operating costs and expenses previously mentioned led to
Recurring Net Income of BRL 401.2 million, a fall of 15.3% in relation to first semester 2021.
The Wood Division ended the quarter with 722.8k m³ of panels sold, of which approximately 25.0% was channeled to the Colombian operation and the external market. For the quarter, Dexco also noticed greater instability in retail sales, but was able to offset this effect with the increase in sales in the industry channel, which showed a strong recovery from the previous quarter. Regarding exports, the high cost of maritime shipping coupled with greater local demand led the Company to reduce its exports during the quarter, especially when compared to the first quarter of 2022. For the semester, the volume sold was 1,455.7k m³, 6.5% less than for 1H21, with an emphasis on export, which increased by almost 12.0% versus the previous year.
