Votorantim’s volumes slightly lower but prices improve

Votorantim’s volumes slightly lower but prices improve
Published: 04 March 2015


Votorantim Industrial generated a turnover 6.9 per cent higher at BRL28,059m (€8660m) while the EBITDA rose by 31.9 per cent to BRL7105m (€2193m).  Votorantim Cimentos contributed 46.5 per cent of the turnover and 50 per cent of EBITDA in 2014, with metals being the second largest contributor accounting for 32.9 per cent of turnover and 30.7 per cent of EBITDA, with steel and the mining operations in Peru accounting for the remainder. 

Group capital expenditure was 3.7 per cent higher at BRL2469m (€762m), while the net debt was reduced by 1.8 per cent to BRL16,500m (€5093m).

Votorantim Cimentos performance
Votorantim Cimentos generated a turnover 4.9 per cent higher at BRL13,078m (€4,036m) while the EBITDA emerged 1.1 per cent lower at BRL3556m (€1098m).  EBITDA margin declined from 28.9 per cent in 2013 to 27.3 per cent last year.  

Cement shipments were 1.4 per cent lower at 37.19Mt while the global capacity was 0.6Mt higher at 48.6Mt thanks to the addition of the Xambioa works in the Brazilian state of Tocatinsr. 

The average price rose by around eight per cent in Brazil, was unchanged in North America and improved by three per cent in the rest of the world. With the exception of Spain, turnover increased in all markets.   Sales volume was affected by a slowdown in the Brazilian construction activity and margins came under pressure from higher freight costs in that market, but remained healthy thanks to the nationwide distribution capacity, vertical integration and brand recognition.    

Both turnover and sales volume increased in North America as the US economy recovered, although a harsh winter led to a slow start to the construction season in 2014. In Europe, Africa and Asia the operational efficiency was improved. 

Votorantim Cementos is primarily looking to Brazil’s northeastern, northern and midwestern regions as well as to Bolivia and Turkey for future growth.