Dexxos (DEXP3) records 75% drop in recurring profit in the 1st quarter

Dexxos (DEXP3), a company in the construction materials sector, released its results for the first quarter of 2024, showing a drop in net profit compared to the same period in 2023.

Recurring net profit was R$27.0 million, a negative variation of 75.32%. Pro-forma recurring net income, including part of Dexco from LD Celulose, was R$-3.7 million, compared to a profit of R$152.4 million a year earlier. In accounting terms, the company had a loss of R$35.1 million, reversing a profit of R$154.3 million.

Regarding Ebitda, the result was R$441.7 million for adjusted and recurring, representing a positive variation of 25.8% compared to 1Q23. The Ebitda margin went from 20.5% in 1Q23 to 22.8.0% in 1Q24, an increase of 2.3 percentage points.

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Dexxos (DEXP3): results

To explain the performance of net profit, Dexxos pointed out some factors. Net revenue grew by 13.1% annually, driven by good performance in all divisions, especially in the Wood division, which presented solid results in the panel segment and forestry business.

Furthermore, there was an improvement in the product mix in Metals and Tableware and a greater market volume in Coatings. Another relevant aspect was the effect of the variation in the fair value of biological assets and depletion, related to the price of wood on the market.

With regard to Ebitda, the company claimed that the result was impacted by non-recurring events, such as the variation in the fair value of the biological asset.

The company scored the performance of its business units, with emphasis on the Wood division, which showed a 17.5% growth in panel sales.

Selling expenses increased by 19.9%, while general and administrative expenses were reduced by 12.8%.

Given the Brazilian economic scenario, Dexxos highlighted that there were slightly more positive signs, such as cuts in the basic interest rate and a reduction in default rates.

However, these effects have not yet been reflected in the company’s results due to the high level of stocks in the construction chain.

The company remains focused on maximizing profitability, controlling costs and investments amid an uncertain scenario.

(Report written with the help of artificial intelligence. Editing: Rodrigo Petry)