CSN reports stable quarterly cement performance

Brazil-based cement producer CSN said 1Q21 net revenue for its cement division reached BRL277m (US$50.9m). The company said this was a “stable performance compared to the previous quarter, even considering a lower sales volume (-3.6 per cent) caused by seasonality.”
 
The company also reported marginally higher unit costs due to a maintenance outage which led to an EBITDA of BRL103m, with an EBITDA margin of 37.2 per cent.
 
According to the latest data by the National Union of the Cement Industry (SNIC), domestic cement sales in the country increased by 19 per cent YoY in the 1Q21 to 15.25Mt, and 36 per cent of this total was sold in March alone.
 
CSN has also recently said during a call with analysts that it is open to acquisition opportunities in the cement business. Reuters reported that CSN's cement director, Edvaldo Rabelo, said the company is "attentive to opportunities" after mentioning LafargeHolcim's potential divestiture of its assets in the country.
 
CEO Benjamin Steinbruch said the company is interested in "potential M&A in the cement business" and could also proceed with the initial public offering of its cement division.