Duratex records best ever quarter results in Q323 November 2020
Brazilian wood-based panels manufacturer Duratex has recorded a stellar Q3, with its earnings (EBITDA) rising 83.6% to R$252.1m – the best quarterly results in the history of the company.
The total volume sold by the wood division was 38.5% higher than in 3Q19.
Volume shipped by the division in Q3 was 890,294m3 (Q3 2019: 642,729m3), with raw panel shipments in Q3 being 539,058m3 and finished panels were 351,236m3.
Total shipments in the first three quarters of 2020 were up 6.9% to 1.978 million m3.
Duratex said pent-up demand arising from the pandemic social isolation measures, together with the impact of the change in consumer habits has led to significant growth in the wood panels sector, which grew 19.9% versus the same quarter in the previous year, according to the IBA (the Brazilian Panel Industry). Volumes grew 21.4% in the internal market and 9.5% in the external market.
Given this scenario, the Brazilian Association of Construction Materials (ABRAMAT), has reported a consistent recovery in consumer demand in 3Q20, reflected in the increase, versus the same period last year.
The total Brazilian domestic market for wood panels in Q3 totaled 2.45 million m3.
Duratex’s wood division saw an increase in demand brought on by the fast replenishment of products in the market, which, allied to the strengthening of client relations, drove significant gains in market share in all of the division’s product lines.
In the external market, with the increase in sales to diversified markets and the return of economic activity in Latin American countries, the company significantly increased export volumes, out-stripping the growth shown by the market as a whole.
Net revenue for the division totaled R$991.8m, 37% higher than the figure for 3Q19. However, with the significant growth in sales, there was also greater exposure of products with low added value so that, even with the price increases, there was a fall in the unit net revenue for the quarter of 1.1% versus 3Q19.
“While the COVID-19 crisis is already starting to have less impact on results, the company remains alert and ready for any sudden changes in the macro-economic scenario,” added Duratex.