BRAZIL - In the second quarter of the year (2Q-2019) Eucatex reported sales for BRL 373 million, growth of 23.5 percent when compared to BRL 302 million in the same period of the previous year.

The activities of Eucatex are grouped into two segments, Paintings (paints and varnishes) and Wood. The Wood segment includes panels, where it is one of the largest manufacturers in the country, and laminate floors, partitions and doors. In this segment, revenues grew 29.9 percent in 2Q-2019, positively impacted by the increase in sales volume and prices. Well above the performance estimates of the Brazilian market for wood panels made by IBA and Eucatex, which reflect a marginal increase of 2.9 percent in 2Q-2019 and 1.2 percent increase in the first half of 2019.

The sales volume of the Wood Segment, considering both domestic and export markets, increased 29.9 percent in 2Q-2019. This result was mainly due to the performance of T-HDF / MDF, which exceeded the Company’s expectations.

For the second quarter of the year, Eucatex reported favorable results on all its consolidated indicators. While recurring EBITDA totaled BRL 71.7 million, 32 percent more than in 2Q-2018, recurring EBITDA margin reached 19.2 percent, compared to 18.0 percent in the same period of the previous year.

Even more noticeable in the quarter was net profit growth, which totaled BRL 23.4 million, up from a loss of BRL 5.5 million in the 2Q-2018.