Votorantim - September 2018

Votorantim Cimentos saw its first-half turnover improve by 14.9 per cent to BRL5738m (EUR1177m/US$1428m), while the cement sales advanced by 18 per cent to BRL4191m (EUR890m). The aggregates turnover rose by 52.9 per cent to BRL198m (EUR40.6m), while the turnover in ready-mixed concrete was a more modest 8.7 per cent ahead at BRL1019m (EUR209m). The turnover in other products and services declined by 11.7 per cent to BRL330m (EUR67.7m). The trading profit came off by 13.2 per cent to BRL338m (EUR69.3m). The net interest charge jumped by 58.1 per cent to BRL653.4m and the pretax profit moved from a BRL24.5m profit to a BRL8.6m loss. At the net level, the swing was from a BRL23.7m profit to a loss of BRL9.8m (EUR2m). 

In the second half, the cement volume increased by 6.4 per cent to 8.3Mt. In Brazil, second quarter turnover improved by 15.25, but transport strikes contributed to a 38 per cent decline in EBITDA to BRL199m. Elsewhere in Latin America, higher sales volumes in Bolivia and Uruguay let to a 46.2 per cent rise in turnover to BRL171m, with the EBITDA jumping by some 69 per cent to BRL44m.

Votorantim Cement North America’s first-half turnover eased by 1.5 per cent to US$374 m, while trading profit fell by 34.4 per cent to US$28.4m. The net interest charge virtually doubled to US$37m, leading to the pretax result moving from a US$24.5m profit to a US$8.6m loss. After a pretty severe winter, the second-quarter turnover improved by 13.5 per cent to US$915m and EBITDA was 4.1 per cent higher at US$255m, helped by higher volumes in Ontario and better prices in the USA.

Elsewhere overseas, higher fuel and electricity costs were largely offset by higher cement prices, as turnover advanced by 25.3 per cent to BRL584m (EUR120m) while EBITDA was 19 per cent ahead at BRL138m (EUR28.3m).