Results Presentation 2Q22/1S22
July 28, 2022
Disclaimer
The information herein has been prepared by Dexco S.A. and does not represent any form of prospectus regarding the purchase or subscription to the company's shares or securities.
This material contains general information relating to Dexco and the markets in which the company operates.
No representation or guarantee, expressed or implied, is made herein, and no reliance should be placed on the accuracy, justification or completeness of the information provided.
Dexco does not offer any assurances or guarantees regarding the fulfilment of expectations described.
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Highlights
Adjusted and Recurring EBITDA of R$950 million in 1H22, confirming the new performance levels
Ongoing price and product mix aimed at revenue growth;
Continued strong demand in the main markets the Company operates, sustaining the results; Costs and expenses pressures squeezing margins;
EBITDA of R$446 million in 2Q22, highlighting the strong growth in Deca division.
Adjusted and Recurring EBITDA | Recurring Net Revenue and Gross | Recurring Net Income | |||||||||||||||||
and Margin | Margin | R$ million | |||||||||||||||||
R$ million / % | R$ million / % | ||||||||||||||||||
-5% | +16% | -15% | |||||||||||||||||
-11% | +12% | 4.345 | -19% | ||||||||||||||||
996 | 950 | 3.742 | 474 | 401 | |||||||||||||||
2.214 | |||||||||||||||||||
446 | 1.974 | 251 | |||||||||||||||||
500 | 203 | ||||||||||||||||||
26,6% | 21,9% | 35,1% | |||||||||||||||||
35,3% | 34,7% | ||||||||||||||||||
25,3% | 20,2% | 35,1% | |||||||||||||||||
2Q21 | 2Q22 | 1S21 | 1S22 | 2Q21 | 2Q22 | 1S21 | 1S22 | 2Q21 | 2Q22 | 1S21 | 1S22 | ||||||||
Adjusted & Recurring | EBITDA | Net Revenue | Gross | ||||||||||||||||
EBITDA | margin % | Margin % | 3 | ||||||||||||||||
Cash Flow
Cash Conversion Cycle remains below pre-pandemic levels
Working Capital/Net Revenue at low levels (~16%), even during a period of inventory rebuilding;
Sustaining Capex impacted in the semester mainly by continued investment in rebuilding forestry assets;
Confirmation of investment in expansion projects in 1H22:
- R$82.8 million for the new Ceramic Tiles unit;
- R$48.0 million expansion project, improvement to the mix and Deca automation;
- R$51.7 million in improving the panels mix, factory debottlenecking and forestry expansion.
Free Cash Flow YTD
R$ million
996 | 950 | 1S21 | 1S22 | 381 | 282 | ||||||||||
1 | |||||||||||||||
(231) | (46) | (74) | (137) | (50) | (186) | (15) | (139) | (99) | |||||||
(409) | (557) | (531) | (670) | ||||||||||||
Recurring | CAPEX | Financial | Working | Sustaining | Projects & | Total | |||||||||
Taxes | Other | FCF | others² | FCF | |||||||||||
EBITDA | Sustaining | Flow | Capital |
Cash Conversion Cycle
Days
1H21 | 1H22 | ||||||||||||||||||
85 | 107 | 122 120 | |||||||||||||||||
52 | 55 | 42 | |||||||||||||||||
15 | |||||||||||||||||||
PMR Client | PME Inventory | PMP Suppliers | Cash Conversion | ||||||||||||||||
2Q21 | 2Q22 | ||||||||||||||||||
79 | 99 | 113 114 | |||||||||||||||||
49 | 51 | 37 | |||||||||||||||||
15 | |||||||||||||||||||
PMR Client | PME Inventory | PMP Suppliers | Cash Convertion | ||||||||||||||||
CAPEX | |||||||||||||||||||
R$ million | |||||||||||||||||||
Investment | 2Q21 | 2Q22 | 1H21 | 1H22 | |||||||||||||||
FORESTRY OPEX | 45 | 93 | 86 | 224 | |||||||||||||||
MAINTENANCE | 69 | 118 | 146 | 185 | |||||||||||||||
Sustaining CAPEX³ | 114 | 211 | 231 | 409 | |||||||||||||||
EXPANSION | 81 | 123 | 115 | 537 | |||||||||||||||
PROJECTS³ | |||||||||||||||||||
1 - Expansion Projects, DX Ventures, Investments in LD Celulose, non-recurring payments and receipts | 2 - Investments in maintenance, factory modernization and improvement projects. | 3 - Expansion Projects, DX Ventures, Acquisition of Companies and | 4 |
Investments in LD Celulose |
Corporate Debt
Leverage of 1.7x, a low level despite investment in projects
Liability management: extension of debt-payment terms of 0.6 years, at a competitive rate;
Issue of a CRA to the amount of R$800 million, with an approximate total cost of 107.3% of CDI, and an average term of 8.3 years;
Strengthened cash position with an eye to amortizations arising in the second semester.
Amortization timeline
R$ million
Avge term¹:
2,462 | 4.1 years |
Revolving
Credit 500
1,962
Cash
954
632
Liquidity 2022 2023
1 - Average weighted term of the Debt..
Avge Cost: | Short |
28% | |
109% of CDI | |
Term | |
72% | |
Long | |
2,017 |
8921,085
71
2024 2025 2026 2027+
Financial Leverage
R$ million
Net Debt
Net Debt/Adjused and Recurring EBITDA (LTM)
1,5x 1,7x
0,9x 0,8x 1,1x
3.689
3.260
2.448
1.771 1.705
2Q21 | 3Q21 | 4Q21 | 1Q22 | 2Q22 |
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Dexco SA published this content on 30 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 12:05:47 UTC.