Dexco reports strong growth

The Brazilian giant posted 48.5% revenue growth in the first nine months of 2021 despite the Brazilian economy’s third-quarter slowdown

Brazilian group Dexco (formerly Duratex) reported consolidated net sales of R$5.9 billion (approximately €953 million) in the first nine months of 2021, up 48.5% on the same period in 2020 (R$3.99 billion). This was a combined result of strong growth in domestic sales (up 48.3% to R$4.9 billion) and in exports (+49.7%), which accounted for 18% of total revenue.

Even more remarkably, EBITDA reached R$1.6 billion (107.2% up on the R$772 million of 2020) while net profit surged to R$1.1 billion (+651.3%).

The Wood division accounted for 58.4% of total sales, Deca (Bathroom Furnishings) 27.4% and the Tile division 14.2%. The Tile division in particular (Ceusa and Portinari brands) reported sales revenue of R$838.7 million (approximately €135.4 million, up 34.8% on 2020) and total sales volumes of 19 million sqm in the 9-month period (up 15.2% on 2020). This sales growth was a combined result of an upswing in both the domestic market (+35.7%), where the division generates 90.5% of its revenues, and in exports (+26.6%). The business unit reported 75.4% growth in EBITDA to R$215.8 million.

The Deca division also posted an excellent performance with 38.7% growth in net revenues to R$1.62 billion (approximately €262 million) and a 61.5% increase in EBITDA to R$292.2 million.

The group also confirmed the investments first announced in July, including the new Industry 4.0 tile manufacturing facility to be built in Botucatu (São Paulo), which will have an annual production capacity of 10 million square metres.