Votorantim Cimentos achieves consolidated net revenue of BRL7.6bn in 3Q22

Votorantim Cimentos ended the 3Q22 with consolidated net revenue of BRL7.6bn (US$1.25bn), an increase of 19 per cent compared to the same period last year. Consolidated adjusted EBITDA in 3Q22 was BRL1.7bn, up six per cent from 3Q21 and 29 per cent higher than 2Q22. The consolidated EBITDA margin was 23 per cent, an increase of three percentage points compared to 2Q22. 

The company’s global cement sales totalled 10.2Mt in the third quarter of this year, with a slight drop of one per cent compared to the 10.4Mt sold in 3Q21. Net income in the quarter was BRL604m, a 44 per cent decrease compared to the same period last year.  

“We improved our operating result, despite a still-challenging macroeconomic situation. Cost inflation – mainly of fuel, freight, energy and inputs – is still present in all countries where Votorantim Cimentos operates. We remain resilient and aligned with our strategy, focussed on operational excellence and the competitiveness of our operations,” said Osvaldo Ayres Filho, COO of Votorantim Cimentos.

Regional results
The company's consolidated operating results were positively impacted by price dynamics in all regions in the 3Q22, which fully offset the pressure on costs, the slight drop in volume and the negative effect of the exchange rate appreciation on the consolidation of the results of operations abroad.  

In Brazil Votorantim Cimentos’ 3Q22 net revenue was BRL3.7bn, an increase of 25 per cent compared to 3Q21. Adjusted EBITDA was BRL863m, up 27 per cent compared to the same quarter last year. Price repositioning in the period and growth in adjacent businesses contributed to the recovery of margins throughout the year and partially mitigated pressure from variable costs, mainly fuel and raw materials.

In North America the company’s 3Q22 net revenue was BRL2.5bn, an increase of nine per cent compared to 3Q21 that was mainly driven by solid market demand after a more severe winter in 2022 and also favourable price dynamics in Canada and the USA. Adjusted EBITDA in the quarter was BRL706m against BRL744m in 3Q21, a five per cent decrease explained by the impact of inflation on variable costs and higher maintenance costs. 

In Europe, Africa and Asia, Votorantim Cimentos’ 3Q22 net revenue increased 25 per cent compared to 3Q21, totalling BRL905m. The results reflect an increase in export volume in Tunisia and Spain, mainly due to the additional volume produced by the Alconera plant, an acquisition completed in October 2021, and to price increases in all countries. These effects mitigated the volume decline in Turkey and Morocco. Adjusted EBITDA was BRL177m in the third quarter, a 17 per cent growth compared to 3Q21. 

In Latin America the company’s 3Q net revenue was BRL214m, down 16 per cent from 3Q21. Adjusted EBITDA was BRL39m, down 37 per cent. The results were mainly due to more challenging dynamics in the Bolivia and Uruguay markets.