CHILE - In the first quarter of 2024 (1Q-2024), Arauco's revenues rose to USD 1,654.9 million, representing a 15.0% increase from the first quarter of 2023 (1Q-2023).

However, the Wood products division saw a revenue decline of 3.3%, primarily due to lower average prices, though this was somewhat offset by increased sales volumes. The adjusted EBITDA for 1Q-2024 soared by 136.8% to USD 445.1 million compared to the same period last year.

During this quarter, the panel market showed signs of improvement. In North America, demand strengthened across various products, including MDF, PB, and TFL. Conversely, in Latin America, demand remained sluggish, primarily due to slow construction activities, impacted by inflation, low economic growth, and high interest rates.

In December 2023, Arauco entered into a share purchase and sale agreement to sell all its shares in the Brazilian Forestry Companies, primarily located in Paraná, Brazil, to a new entity formed by Klabin S.A. The forest plantations involved in this deal cover around 85,000 hectares, with the transaction valued at USD 1,160 million.

The completion of this sale is contingent upon meeting standard conditions precedent for such deals, including approval from Brazilian competition authorities. It's important to note that the sale does not include Arauco’s panel mills in Brazil. Or other forestry assets primarily in Mato Grosso do Sul, Brazil, which are linked to the company's plans to construct a pulp mill in the region.