SÃO PAULO, Nov. 13, 2019 /PRNewswire/ -- Eucatex (B3: EUCA3, EUCA4), one of the largest producers of wood panels in Brazil, which is also in the paint and varnish segments, laminated floors, dividers and doors, released its third quarter 2019 results (3Q19).
Total Net Revenue was R$398.7 million, which is 24.2% higher than the R$321.2 million reported in 3Q18. This growth is due to higher revenues, following a 17.6% increase in the Wood Segment, which was impacted positively by physical sales, and the 10.7% rise in the Paints Segment, which is a reflection of the higher prices and growth in physical sales, compared to 3Q18.
Physical sales in the Company's Wood Segment in 3Q19, including both the internal and external markets, grew 16.4% over 3Q18, which is a result of higher sales in the internal market, where the highlights were the strong performance of Fiber Board and T-HDF/MDF, exceeding the Company's expectations. The physical sales of Paints in 3Q19 rose 9.3% over the same period of 2018.
Growth in Net Income and the improved Gross Margin reported in 3Q19 impacted the Net Recurring Revenue favorably, which rose to R$15.6 million; this growth of 65.8% was significant in comparison with 3Q18.
Recurring EBITDA was R$74.6 million, an increase of 21.2% over the number reported in 3Q18, and the Recurring EBITDA Margin was 18.7%, a 0.5 percent retraction compared to the same period in the previous year.
Despite the 1.1% elevation in Net Debt in relation to 1H19, totaling R$426.2 million, the Short-Term Debt dropped by three percent to 60%, and represents 1.5 x the annualized Recurring EBITDA.
In the nine months ended in 2019, Net Recurring Revenue was R$56.5 million, 522.2% higher than in the same period of 2018, impacted by the 21.7% growth of Total Net Revenue to R$1,128.3 million, as well as by the Gross Margin. The higher Total Net Revenue was the result of positive performance in the Company's Operating Segments, which increased 21.8% in the Wood Segment, and 10.1% in Paints in 9M19 compared to 9M18.
Recurring EBITDA was R$213.0 million, a 27.2% increase over the number reported in 9M18, and Recurring EBITDA Margin was 18.9%, a growth of 0.8% on the same basis of comparison.
Access the earnings release, presentation and financial statements at: ri.eucatex.com.br
Conference Call: November 14, 2019 (9:30 a.m. Brazil), Telephone: (11) 2188-0155.
IR: firstname.lastname@example.org (11) 3049-2473
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