Brazil and beyond
Recent years have seen the internationalisation of Brazil’s foremost cement company as Votorantim Cimentos expanded through organic growth and well-planned acquisitions. Maintaining a leadership position in Brazil and now with a footprint across distinct regions around the globe, Votorantim Cimentos’ CEO, Walter Dissinger, talks ICR through this period of dynamic growth, market perspectives and the next phase of development.
International Cement Review (ICR): In 2014 Votorantim Cimentos reported a net revenue of
BRL12,884m (US$5.47bn), while the EBITDA margin declined slightly to 27.1 per cent. What’s your expectation for company sales in 2015?
Walter Dissinger (WD): In 2014 consolidated net revenues totalled BRL12,884m, an increase of 6.1 per cent compared to the same period in 2013. This increase was supported by higher cement prices in almost all our operations (except Spain and North America), higher sales volumes in our North American and South American operations, and the effects of exchange rate variations in the consolidation of our foreign operations (Brazilian real depreciation against the US dollar and the euro).
Consolidated adjusted EBITDA totalled BRL3493m, slightly lower compared to 2013 (BRL3512m), with an EBITDA margin of 27.1 per cent (in 2013, this was 28.9 per cent). The EBITDA reduction was impacted mainly by lower EBITDA in North America and Brazil and was partially offset by a higher EBITDA in Europe, Africa/Asia and South America.
For 2015 the outlook is continuous growth in North America, Europe, Asia and Africa as well as Latin America. Meanwhile, for Brazil we expect a reduction in sales volume compared with last year due to the current slowdown in the economy.
ICR: On a global scale, what are the major economic issues concerning Votorantim Cimentos?
WD: We have a global footprint across distinct regions around the globe. We are positioned in both mature and emerging markets to benefit from different market dynamics.