Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Wood division consistently boosted its results throughout 2024, driven by strong demand from the furniture industry and retail sector.
- The Metals and Sanitary Ware division showed recovery compared to 2023, with operational execution improving due to a market upturn.
- LD Celulose delivered record revenue and EBITDA in 2024, benefiting from operational efficiency and effective cost management.
- Dexco SA (BSP:DXCO3, Financial) achieved an adjusted and recurring EBITDA of BRL2.4 billion in 2024, a 22% increase compared to 2023.
- The company successfully managed its liabilities, reducing the average cost of debt while maintaining the average term.
Negative Points
- The ceramic tiles sector remains under pressure, with a recovery still challenging due to a previous 30% drop in 2022 and 2023.
- Net income showed a negative result for the quarter and the year due to restructuring of LD Celulose's financing.
- The Tiles division faced increased costs and competitive pressures, resulting in a low adjusted and recurring EBITDA margin of 0.5% for 2024.
- The macroeconomic scenario remains challenging, with higher interest rates and volatile foreign exchange rates impacting costs.
- Dexco's leverage levels were around 3.01 times net debt-to-EBITDA, indicating a need for continued focus on deleveraging.
Q & A Highlights
Q: What are Dexco's plans for standing wood sales and panels in 2025, considering the challenging year ahead?
A: Francisco Semeraro Neto, Dexco's CFO, explained that the company prefers to run panels at full capacity and will only sell standing wood if necessary. Henrique Haddad, VP of Wood, noted that while growth is slower, the market remains stable, and significant standing wood sales are not anticipated in the short term.
Q: How is Dexco addressing the impact of macroeconomic challenges and fluctuating exchange rates on demand and pricing?
A: Francisco Semeraro Neto stated that Dexco is closely monitoring market conditions and has implemented price adjustments to offset cost pressures from currency fluctuations and rising input costs. The company is focusing on maintaining a rational pricing strategy across its product lines.
Q: What are the expectations for Casa Dexco and its impact on Dexco's business in 2025?
A: Francisco Semeraro Neto highlighted that Casa Dexco aims to enhance customer service and brand presence. The initiative includes opening franchise stores and improving profitability through a better product mix. The project is expected to boost sales and provide valuable market insights through data analytics.
Q: How is Dexco planning to manage its leverage and cash flow in 2025?
A: Francisco Semeraro Neto mentioned that Dexco is focusing on capturing gains from past investments and optimizing asset utilization. The company is exploring balance sheet actions, including potential divestments, to improve cash flow and reduce leverage, while maintaining strategic operations.
Q: What are the prospects for LD Celulose in terms of productivity and dividends?
A: Francisco Semeraro Neto reported that LD Celulose achieved higher-than-expected productivity levels in 2024. The company is well-positioned for future growth, with plans to pay small dividends starting in 2026, increasing in subsequent years as leverage decreases and productivity remains strong.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
