Votorantim Cimentos ended the first quarter with a consolidated global net revenue of BRL5.6bn, up one per cent YoY, excluding the effects of changes in foreign exchange rates. It attributes the result to geographic diversification and a higher sales volume. The company’s total cement sales edged up by two per cent YoY to 7.7Mt when compared with the 1Q24. Demand in Brazil and Spain supported 1Q revenue while in most countries, positive price dynamics also played a role.
However, consolidated adjusted EBITDA declined 14 per cent in local currency to BRL598m in the 1Q25 as adverse weather in North America and plant maintenance schedules affected earnings. As a result, the EBITDA margin shrank by two percentage points YoY to 11 per cent.
There was a BRL-325m net loss in the 1Q25, compared to a net profit of BRL17m in the equivalent period of the previous year. The profit was impacted by operating results, higher depreciation in the quarter (primarily due to the increase in the asset base resulting from recent investments), changes in exchange rates and a review of the useful life of fixed assets, in addition to impacts from the completion of the sale of assets in Tunisia. The company also made an extraordinary dividend payment of BRL683mto the majority shareholder.
Leverage, measured by the net debt/adjusted EBITDA ratio, was 1.95x at the end of the quarter, an increase of 0.09x compared to the same period in 2024, considering only continuing operations. This increase was due to changes in exchange rates and is in line with the company’s financial policy and investment grade metrics. Votorantim Cimentos reached the end of the 1Q25 with strong liquidity, with cash and financial investments totalling BRL4.1bn, which will enable the company to meet its financial obligations for the next three years.
“We ended the quarter with an increase in net revenue, due to the growth in sales volume and our geographic diversification strategy. Our financial strength and discipline in capital allocation have enabled us to navigate this volatile global environment. At the same time, we continued to maintain our focus on the long term through our program of investments in capacity expansion, structural competitiveness and acceleration of new businesses,” said Osvaldo Ayres, global CEO of Votorantim Cimentos.
Votorantim Cimentos’ investments (capex) in the 1Q25 totalled BRL548m, an increase of 35 per cent compared to the same period in 2024. This increase was driven by the company’s global strategy of investments in modernisation, structural competitiveness and decarbonisation. The company started investing in the modernisation of the kilns of its Alconera and Málaga plants, in Spain, to expand the use of alternative fuels, with the goal of increasing thermal substitution in these sites, helping reduce CO2 emissions. In Brazil, highlights included capacity expansion projects at the Salto de Pirapora (SP) and Edealina (GO) plants, which are expected to start operations in the 2H25 and the 1Q26, respectively.
Regional performance
In Brazil Votorantim Cimentos’ net revenue in the 1Q25 was BRL3.1bn, up five per cent compared to the 1Q24. Adjusted EBITDA was BRL427m, down 17 per cent compared to the 1Q24, due to plant maintenance schedules and a non-recurring item that had a positive impact on the 1Q24.
In North America net revenue totalled BRL1.2bn in the first three months of the year, representing a nine per cent drop compared to the same period in 2024, excluding changes in exchange rates. Revenue was impacted by the market slowdown resulting from a more intense winter, which was partially mitigated by positive price dynamics. Adjusted EBITDA for the region was negative BRL136m in the period, compared to negative BRL18m in the 1Q24, resulting primarily from harsher winter conditions, in addition to plant maintenance schedules.
In Europe, Asia and Africa, net revenue in the 1Q25 was BRL869m, up two per cent in local currency compared to 1Q24, due to better prices in Spain and Turkey. Adjusted EBITDA in the region was BRL235m in the period, an increase of 33 per cent in local currency compared to the 1Q24. The positive operating result was due to positive market dynamics in Spain and better margins in both countries. The completion of the sale of the company’s assets in Tunisia was announced in April. The sale of assets in Morocco continues to follow its regular course, awaiting the fulfilment of usual conditions precedent for this type of transaction.
In Latin America net revenue increased two per cent in local currency in the 1Q25 compared to the same period in 2024, totalling BRL234m, as a result of higher sales volumes and prices in Bolivia. This growth in sales was also reflected in adjusted EBITDA of BRL39m in the 1Q25, up six per cent over the 1Q24, excluding the effect of changes in exchange rates.
