Trex achieves double-figure growth in results

23.03.2020 − 

Total sales revenue generated by the US WPC decking and construction-element manufacturer Trex rose by 17.7 % in the fourth quarter of 2019 to 164.8m US$. As such, and like the previous quarter (+16.9 %), the company achieved a double-figure percentage rate of growth. An increase of only 2 % had been recorded in sales revenue for the first half-year.

According to information from Trex, a lower number of large-scale projects in the “Commercial Products” division led to significant reductions in sales revenue in all four individual quarters. A reduction of 32.6 % to 12.2m US$ had to be recorded in the period under review.

Sales revenue generated by the “Residential Products” division, on the other hand, was raised by roughly a quarter to 152.5m US$. As in the preceding quarter, the marked growth in the division led to a better result. Backtracking from the cumulated figures reveals an increase of 42.2 % for EBITDA in the fourth quarter to 49.0m US$. Taking the Commercial Products division into account, consolidated EBITDA was improved by 40.0 % to 49.9m US$ and the operating result increased 43.5 % to 46.2m US$.

Consolidated sales revenue rose by 8.9 % to 745.3m US$ in the year as a whole. 93 % of this was contributed by the Residential Products division. Although the growth in sales revenue there was slowed by restrictions in output at the start of the year after the market launch of new decking lines, the first phase of the capacity enlargement running until the beginning of 2021 was able to be completed in the third quarter. The volumes made available by this contributed significantly to the growth of 13.2 % achieved in sales revenue in 2019. The positive development in the second half of the year also enabled the division’s EBITDA to be boosted by 6.8 % to 199.0m %. The Commercial Products division’s EBITDA fell by more than half to 3.2m US$. As such, consolidated EBITDA still increased by 4.7 %, and the operating result by 6.5 %.

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