Brazil-based Votorantim Cimentos has seen a three per cent rise in consolidated net revenue to BRL13bn (US$2.61m) in 2019, compared to BRL12.6bn recorded in the previous year. Consolidated EBITDA saw a modest increase of one per cent YoY to BRL2.7bn from BRL2.6bn, with a margin of 20 per cent (21 per cent in 2018).

Brazil
Net revenue in the company’s domestic market was up four per cent from BRL6.6bn in 2018 to BRL6.8bn in 2019, mainly due to higher volumes and prices in the cement market, especially in the second half of the year. Similarly, EBITDA advanced four per cent to BRL1.06bn in 2019, against BRL1.02bn in 2018.

“Cement demand in Brazil grew for the first time in four years, but still at a slower pace than market expectations,” said Eduardo Almeida, CFO of Votorantim Cimentos Brazil.

North America
The company’s North American operations saw revenue climb 11.8 per cent YoY to BRL3.8bn last year, with this attributed to higher volumes and prices. Adjusted EBITDA increased seven per cent YoY to BRL1.06bn on a margin of 28 per cent (29 per cent in 2018).

Europe, Asia and Africa
The EAA segment posted consolidated net revenues of BRL1.7bn, down eight per cent YoY from BRL1.89bn in 2018. Adjusted EBITDA also declined nine per cent to BRL418m from BRL461m in 2018, mainly due to poor results in Turkey and the depreciation of local currencies in Turkey, Tunisia and Morocco.

A 41 per cent drop in sales in Turkey affected results, but improvements in Morocco, Spain and Tunisia helped the company maintain profitability.

Latin America
The company’s performance in Latin America (excluding Argentina, which is not consolidated) was influenced by lower volumes in Uruguay and better results in Bolivia, according to the company.

Net revenue saw a slight dip to BRL657m, two per cent below BRL671m in 2018. Adjusted EBITDA decreased 23 per cent YoY to BRL118m. In 2020 a new competitor in Uruguay and the uncertain political scenario in Bolivia are expected to affect the region’s performance, which corresponded to four per cent of the global consolidated result in 2019.