• Retail volume growth: Retail MDF volumes expanded 20% YoY in Q1, continuing four consecutive quarters of consistent growth, while the plywood division also achieved double-digit volume growth.
• Margin drivers: Gross margins improved through a 7.5% YoY pricing increase and a 1.5% contribution margin boost from power, fuel, and timber-mix efficiencies, offsetting a 6–7% hit from higher chemical costs.
• Export sales disruption: Exports fell to zero in Q1 from a historical run rate of 8,000 to 9,000 cubic meters per month due to Middle East geopolitical tensions and an eightfold surge in container freight rates.
• Pricing and competition: Although domestic MDF realizations rose 7.4% YoY, aggressive peer discounting led to some price rollbacks, while fluid chemical costs continue to make forward guidance challenging.