Votorantim Cimentos sees net revenue up 9% in 1Q20

Votorantim Cimentos' financial statement for the period ended 31 March 2020 reported net revenue up nine per cent to BRL2747m (US$494.6m) from BRL2524m in the 1Q19, while adjusted EBITDA fell to BRL232m from BRL586m in the 1Q19. Group cement volumes declined slightly to 6.3Mt from 6.4Mt in the year-ago period.

Net revenues in Brazil in 1Q20 rose to BRL1563m from BRL1536m in 1Q19. Positive market dynamics were seen before the outbreak of COVID-19 in March. However, the expansion project at Pecém grinding plant in Ceará was impacted by government restrictions on coronavirus lockdown.

In North America first-quarter net revenues increased to BRL631m from BRL431m in the 1Q19. Milder weather and strong market conditions, plus the depreciation of the real supported performance.

In Europe, Asia and Africa, net revenue remained stable reaching BRL403m, up 0.4 per cent YoY from BRL401m. COVID-19 impacted results from March 2020 mainly in Morocco, Spain and Tunisia.

Meanwhile, in Latin America (excluding Brazil) net revenues slipped to BRL151m, down -12 per cent from BRL172m in the 1Q19. Uruguay saw stable volumes and had a price increase while Bolivia was impacted by the macroeconomic scenario and COVID-19 lockdown in March 2020.