Dexco posts Q2 results22 August 2022
Brazilian wood-based panels manufacturer Dexco (formerly known as Duratex) saw its wood division reported a dip in earnings and production volumes in Q2, compared to a year ago.
The wood division recorded adjusted EBITDA of R$260m (2021 Q2: R$333m), while volumes totalled 723,000m3, down 4% on a year ago.
Dexco said the division still recorded a very solid performance, maintaining the sales figures in 2Q22, despite being affected by the greater instability in the international supply of gold and exchange rate volatility which led to its 21% decline in adjusted earnings.
The pressure on demand from the domestic market was offset by the strong increase in exports. The panel sector closed the quarter with a drop in sales at home of 7% compared to 2Q21, reflecting a drop of 14.2% in the domestic market and a rise of 46.7% in exports.
Dexco’s Q2 total group revenues, including other divisions, totalled R$2.21bn (2021 Q2: R$1.97bn)
Dexco’s adjusted group EBITDA in Q2 was R$446m, the wood division making up 58% of the profits.
The company said inflation had passed double digits in Brazil and is having a strong impact on the main economies of the world. Property sales have continued to show growth but the price inflation of construction materials has impacted affordability for consumers
Dexco also operates the Deca division focusing on ceramics, metal fittings and electronic showers, while the Tiles division produces floor and wallcoverings and roof tiles.