CHILE - Arauco, one of the largest global forestry companies, reported that sales revenues reached USD 1,439.5 million in the first quarter of 2023 (1Q-2023), a decrease of 18.3 percent when compared to the 1Q-2022.

This variation is mostly explained by lower revenues in the pulp division, due to a decrease in average prices. Additionally, sales revenues for the wood products division were 22.4 percent lower than in the 1Q-2022, due to a decrease in sales volume and in average prices.

Adjusted EBITDA for the 1Q-2023 was USD 188.0 million, a 70.1 percent decrease when compared to the 1Q-2022.

The Adjusted EBITDA for our wood products business was USD 136.0 million in 1Q-2023. Wood products EBITDA margin was 17.2 percent.

Wooden panels average prices and sales volume decreased 4.7% and 2.3% respectively during the first quarter of 2023.

In terms of supply, wooden panel volumes and prices were still affected by volume increases from Brazil to the rest of the region, especially in MDF.

On the demand side, the downward effect persists due to higher interest rates, currency devaluations, high inventories and political uncertainty in some South American countries.

Plywood volumes and sales slightly decreased 3.8 and 1.3% respectively. There was a lower demand for Plywood when compared to the same period of the previous year, mainly explained by the effect of higher interest rates in America and Oceania, which affected the construction and remodeling sectors.

Arauco´s net loss for the 1Q-2023 was USD 54.3 million, affected by a one-time charge of USD 42.9 million due to forest fires during the first quarter of 2023.