Votorantim Cimentos' regional results in 2021 reach almost record levels

Votorantim Cimentos reported close to record growth in all regions for its performance in 2021 with total cement sales of 37.2Mt across all regions.

“Our business strategy and recent acquisitions, combined with our resilience and operational excellence led us to achieve sales growth in all regions and to close the year with record results,” said Marcelo Castelli, global CEO of Votorantim Cimentos.

In Brazil Votorantim Cimentos had net revenue of BRL10.3bn (US$2.1bn) in 2021, a 30 per cent growth compared to 2020. Adjusted EBITDA grew 58 per cent, to BRL2.4bn. The positive results, despite a flat market in the second half of the year and a strong comparison base in the previous year, were primarily due to strong market dynamics, with an increase in sales volumes and prices, which alleviated the cost pressure related to higher commodity prices and local inflation.

In North America net revenue was BRL7.1bn last year, up 31 per cent over 2020. Adjusted EBITDA in the region was BRL1.8bn in 2021, up 26 per cent. The positive results were primarily due to the consolidation of the McInnis, Superior Materials and Valley View acquisitions, in addition to strong demand in Canada and the USA, price dynamics in both countries and favourable weather conditions brought by a mild winter. 

In Europe, Asia and Africa net revenue was BRL2.9bn in 2021, a 37 per cent growth compared to the previous year. The region was the most impacted by the COVID-19 pandemic in 2020, resulting in a lower base of comparison. Adjusted EBITDA in the region was BRL562m, up 24 per cent over the previous year. In 2021 there was strong demand in all countries and positive price dynamics in most of them. This situation partially offset the pressure of higher costs.

In Latin America net revenue was BRL978m in 2021, up 19 per cent compared to 2020. Adjusted EBITDA in 2021 was BRL237m, 19 per cent higher. Some of the highlights include the recovery of the Bolivian market, which was strongly impacted by COVID-19 in 2020, and solid demand in Uruguay. Both countries had stable prices and benefitted from the positive effects of the devaluation of the real during the year.