BRAZIL - Eucatex, one of the largest manufacturers of wooden panels in Brazil, with operations also in the paint, varnish, laminated flooring and doors segments, announces  its results for the 1st quarter of 2023 (1Q-2023).

Total sales revenue in 1Q-2023 came to BRL 678.6 million, compared to BRL 597.8 million in 1Q-2022, up 13.5%.

In the Industry and Resale Segment, composed of MDP/MDF/THDF panels and Hardboard, revenue grew 28.2% in the quarter, though average price declined 8.3% on account of a “poorer” sales mix than in 1Q-2022.

In 1Q-2023, sales revenue from the Construction Segment – composed of Laminated Flooring and Doors among others, – increased 3.6% in relation to 1Q-2022.

In 1Q-2023, the Export Segment registered 4.3% growth in sales revenue compared to 1Q-2022. Sales in the U.S. market remained practically stable, marked by stiffer competition with local players. Logistic costs and the shortage of containers generated an increase in sales costs and a loss of competitiveness for more “commoditized” products. As an alternative, the Company resorted to portfolio expansion and product differentiation, which helped maintain and even slightly increase sales. Sales to other markets became less attractive and the Company has been operating only where it is competitive.

Recurring EBITDA totaled BRL 148.8 million in the 1Q-2023, up 20.7% from 1Q-2022. Recurring EBITDA Margin in 1Q-2023 was 21.9%, increasing 1.3 p.p. from 1Q-2022.