Votorantim Cimentos' see net revenue regional rises in Brazil and North America

Votorantim Cimentos' see net revenue regional rises in Brazil and North America
13 May 2022

In Brazil Votorantim Cimentos’ net revenue in the 1Q22 was BRL2.7bn (US$525.6m), a 21 per cent increase compared to 1Q21. Despite the instability of the local market, macroeconomic pressures and the strong basis for comparison with the same period last year, the increase in revenue was primarily due to the combination of higher sales volume and price. 

Adjusted EBITDA in the quarter was BRL359m, down 40 per cent compared to March 2021 due to cost pressure caused by commodity prices, local inflation and the effect of a non-recurring item in the 1Q21 which increased EBITDA by BRL58m.

In North America net revenue was BRL1bn in the first three months of 2022, an increase of 24 per cent compared to 1Q21, due to additional volumes resulting from acquisitions carried out last year and solid market dynamics in Canada and the USA. Adjusted EBITDA in the region was BRL-122m in the first quarter compared to positive BRL10m in the same period in 2021. This reversal is due to worse weather conditions in the Northern Hemisphere, which had a significant impact on operating results, said Votorantim.

In the region covering Europe, Asia and Africa, Votorantim Cimentos’ net revenue increased 10 per cent in the first quarter, reaching BRL697m, driven by an increase in volumes in almost all countries in the region and the addition of Cementos Balboa, in Spain. Adjusted EBITDA in the region was BRL133m in the quarter, down 46 per cent from 1Q21, when a non-recurring item (sale of land in Turkey) led to an almost BRL$74m increase in EBITDA. Market dynamics were not able to mitigate pressure on petroleum coke and energy costs, nor the impact of a truck drivers’ strike in Spain in mid-March.

In Latin America net revenue in 1Q22 was BRL189m, down 17 per cent compared to the first quarter of 2021. Worse market dynamics in Uruguay pressured the result down, an effect that was partially offset by the Bolivian market, which, despite macroeconomic challenges, has experienced a positive trend, with better volumes and prices, since last year. Adjusted EBITDA in the region was BRL34m in the first quarter, down 50 per cent compared to the same period last year. In addition to the situation in Uruguay, the devaluation of the real also had a negative effect on the results in the region.

Published under Cement News