Votorantim Cimentos records 6% net revenue rise

Brazil's Votorantim Cimentos has reported a 5.5 per cent YoY rise in net revenue to BRL2524m (US$654.5m) for the first quarter of 2019. The increase was attributed to the results of its Brazilian and other Latin American operations, combined with the positive effect of the real’s depreciation against the US dollar.

The company’s adjusted EBITDA surged 179.9 per cent to BRL586m from BRL214m, while its EBITDA margin advanced to 23 per cent from nine per cent. The most significant growth in EBITDA for the company was noted in Brazil, which saw it finish at BRL509m from BRL112m in the year-ago period, a result of higher operational results in the country and tax credits.

In Brazil net revenue was up three per cent to BRL1536m from BRL1489m in 1Q18, mainly due to higher prices. Votorantim Cement North America recorded revenues of BRL416m, a seven per cent YoY increase, mainly due to the depreciation effect of the Brazilian real which offset poor weather conditions that affected its markets.

In Europe, Africa and Asia total revenues were flat compared to 1Q18, reaching BRL401m as the positive dynamics in Spain, Morocco and Tunisia did not fully offset the decrease in volumes in Turkey and the depreciation of the local currencies in these countries.

Latin American operations saw net revenues advance 50 per cent YoY from BRL114m to BRL172m, mainly due to higher volumes in Bolivia, as the company continues to increase its presence in the country, and higher domestic volumes and prices in Uruguay.