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Net Revenues at Eucatex rise 18.5% in 4Q19

SÃO PAULO, March 26, 2020 /PRNewswire/ -- Eucatex (B3: EUCA3) (B3: EUCA4), one of the largest wood panel producers in Brazil, which also has products in the paint and varnish, laminate floor, divider and door segments, releases its fourth quarter 2019 results (4Q19).

Highlights:

Total Net Revenues were R$ 397.5 million, 18.5% higher than the $ 335.3 million reported in 4Q18. This growth was due to revenues that were positively impacted by physical sales in the Wood Segment of 12.5%, and in the Paints Segment of 14.6%, compared to 4Q18.

Physical sales in the Company's Wood Segment, including the internal and external market in 4Q19, grew 4.7% over 4Q18, due to the higher sales in the internal market, where the highlights were fiberboard and T-HDF/MDF. Physical sales in Paints in 4Q19 rose 16.2% over the same period of 2018, exceeding the Company's expectations.

Despite the growth in Net Revenues, the drop in the Fair Value of the Biological Asset and growth in the Income Tax and CSLL (Social Contribution on Net Income) reported in 4Q19 impacted the Recurring Net Income negatively, which was R$ 24.6 million, a retraction of 46.5% in relation to 4Q18.

Recurring EBITDA was R$ 76.6 million, an 18.9% increase over the number reported in 4Q18, and the Recurring EBITDA Margin was 19.3%, which is stable when compared to the results from the same period of the prior year.

Net Debt dropped in relation to 9M19 and 2018, from 2.7% and 0.3%, respectively, to a total of R$ 414.7 million, in addition to the 5pp and 10pp reduction in the Short-Term Debt when compared to 9M19 and 2018, representing 55%, 1.5 x Recurring EBITDA.

In 2019, Recurring Net Income was R$ 81.1 million, 47.2% higher than in 2018, impacted by the 20.9% growth in Total Net Income, reaching R$ 1,525.8 million. The increase in Total Net Income was the result of the positive performance of the Company's Operating Segments, which increased 19.3% in the Wood Segment, and 11.3% in Paints in 2019, compared to 2018.

Recurring EBITDA was R$ 289.6 million, a 24.9% increase over the number reported in 2018, and the Recurring EBITDA Margin was 19.0%, a 0.5%pp growth on the same comparative basis.

See the earnings release, presentation and financial statements at: ri.eucatex.com.br 

Conference call: March 26, 2020, 11:00 AM (Brazil), Telephone: (11) 2188-0155.
IR: ri@eucatex.com.br (11) 3049-2473

Cision

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SOURCE Eucatex