MEXICO - Proteak, Mexico's largest forestry company, reported results for the third quarter of 2022 (3Q-2022).

Sales of the MDF and Teak businesses reached MXN 440.6 million in 3Q-2022, 19.4% below the same quarter of the previous year (3Q-2021: MXN 546.4 million) and -6% vs. the immediate prior quarter, excluding other income and plantation revaluation.

During 3Q-2022, Tecnotabla (MDF) sales volume reached 46,154 m3,-29% vs. 3Q21 (record quarter) and +1% vs. 2Q-2022, with a value-added product share of 25%. MDF sales revenue reached MXN439.9 million, -18.7% vs. 3Q-2021 and -5% vs. 2Q-2022.

During 3Q-2022, MDF sales in the export market (USA) remained at 6% of the total, keeping the channel open and with good customer relationships.

The quarter represented a relevant challenge in the commercial aspect; the entry of imported products, the reduction in demand and the downward trend in prices were the predominant elements in the period.

In 3Q-2022, Proteak (Tecnotabla) market share in the Mexican market has remained above 20% in Natural MDF, while remaining stable in melamine with 33%.

Throughout 3Q-2022, total MDF production was 51,181 m3, -23% vs. 3Q-2021 and -7% vs. the previous quarter. Due to the contraction of demand in the Mexican market, performance and operating factors were affected by the stock and capacity of the warehouses, causing them to work at restricted speed.

The combination of the above effects resulted in a net loss after taxes for the quarter of MXN 14.7 million.