BRAZIL - Dexco, the largest wooden panel manufacturer in Brazil, reported sales revenue of BRL 1,953.8 million in the 2Q-2023, a drop of 11.7% versus 2Q-2022. For the semester (6M-2023), Sales Revenue was BRL 3,665.8 million, down 15.6% compared to same period 2022 (6M-2022: 4,344.6 million).

The Recurring EBITDA in the 2Q-2023  reached BRL 349.7 million, in line with the previous quarter, with a margin of 17.9%. However, compared to 2Q-2022 (BRL 446.2 million), this represents a decrease of 21.6%, mainly driven by the weaker markets in which the Company operates over in the period.

At Dexco, as in the previous quarter, the results for the Wood Division exceeded expectations, and were the stand out performance in the group, highlighting the Division’s resilience in the face of market instability.

The ability of the operation to respond deftly to the demand scenario, through optimizing the use of assets, serving its panel customers and profitably selling wood to third parties, led the Division to end 2Q-2023 with an Adjusted and Recurring EBITDA of BRL 344.2 million, an increase of 32.3% versus 2Q-2022 and 3.8% versus 1Q-2023. The margin was 27.6%, 7.4 p.p. higher than in 2Q-2022, but 1.6 p.p. lower than for 1Q-2023.

The focus on customer service and maintenance of market share, led Dexco’s wood division to report an 8.1% drop off in volumes in 2Q-2023, a result that outperformed the market as a whole, with a total of 663,8569 m³ sold, 27.7% of this volume being allocated to operations in Colombia and the external market. Year to date, there has been a 10.0% drop in volume versus the same period last year, in line with the sector as a whole. It should be noted that during this quarter factory maintenance shutdowns were carried out in Brazil and Colombia, which explains the slight drop off in capacity utilization, to levels close to 75.0%.