Dexco reported a record Adjusted EBITDA of R$ 504 million for Q1 2022, demonstrating resilience amid challenging market conditions and highlighting significant growth potential in the Brazilian construction materials industry.

Target Information

Dexco has announced a record-breaking performance for the first quarter of 2022, reporting an Adjusted EBITDA of R$ 504 million. This figure surpasses the company's previous best results for the same period in 2021. Despite a reduction in sales volume due to seasonal factors and increased input costs affecting margins, Dexco achieved a recurring net revenue of R$ 2,131 million, reflecting a 21% increase compared to the first quarter of 2021.

In the first quarter of 2022, Dexco maintained a low leverage ratio (Net Debt/Recurring EBITDA) of 1.5x, supported by strong operational results, even after investing in various projects during this period. Antonio Joaquim de Oliveira, the company's President, emphasized that despite adversities, such as seasonal challenges and geopolitical issues impacting costs, Dexco has grown significantly, showcasing the resilience of its divisions focused on end consumers.

Industry Overview in Brazil

The Brazilian woodworking industry reported a 13% reduction in volume for the first quarter, as per the Brazilian Tree Industry (IBÁ), primarily due to the return of seasonal patterns. Despite this, there was a 23% growth in the external market, indicating resilience and opp