Votorantim Cimentos ended 2022 with BRL25.8bn (US$4.84bn) in global net revenue, an increase of 16 per cent compared to 2021, resulting from a stable sales volume and favourable price dynamics in all regions where it operates, which mitigated cost pressures and the impact of the exchange rate in the year.
Cement sales in the countries where the company has operations totalled to 36.8Mt, one per cent less than the previous year. The company posted BRL1.1bn in net profit in 2022, 30 per cent less than the previous year, primarily due to the negative impact of increased costs on the operating results and higher depreciation related to assets acquired in recent years.
“We had another year of solid results, thanks to our discipline in the execution of our strategy and despite a global environment marked by high inflation, rising interest rates and the ongoing consequences of the war between Russia and Ukraine. Locally, household indebtedness and credit tightening affected investments in new construction and renovation projects, which impacted the domestic cement market. Despite that, we increased our investments focused on improving competitiveness, developed and launched new businesses, and expanded our operations in important markets, such as Spain. The company is stronger, more resilient and better prepared for opportunities and challenges,” said Osvaldo Ayres, COO of Votorantim Cimentos.
Last year, adjusted EBITDA was BRL4.9bn, down six per cent compared to the previous year. The EBITDA margin was 19 per cent, five percentage points lower than in 2021 due to the effects of global inflation on the company’s costs. Year-end leverage, measured by the net debt/adjusted EBITDA ratio, was 1.55x, the best level in over 10 years. At the end of 2022, Votorantim Cimentos had a positive cash balance of BRL4.9bn, a level of liquidity strong enough to meet the company’s financial obligations for the next four years.
In 2022 the company’s investments in expansion, modernisation and business support (capex) totalled BRL2bn, 36 per cent higher than in 2021. These investments included projects to improve competitiveness, advance the company’s decarbonisation commitments and implement the new cement grinding and shipping operations in the city of Minas, Uruguay. In November Votorantim Cimentos completed the acquisition of the Heidelberg Materials operations in southern Spain, including a modern integrated cement plant located in the city of Málaga, three aggregate mining operations and 11 concrete plants in the Andalusia region.
Another initiative in line with the decarbonisation strategy was the signature of a Term of Engagement between Votorantim Cimentos and InvestSP, an investment and competitiveness promotion agency, for studies related to the modernisation project of the Salto de Pirapora plant, located approximately 120km from the capital of São Paulo. InvestSP will support the company in aspects related to the project’s feasibility study and implementation, primarily related to the relationship with government bodies and representatives in the state of São Paulo. The project includes the modernisation of the cement plant’s production line, in different phases, primarily aiming to increase the unit’s thermal substitution rate and reduce CO2 emissions, in line with Votorantim Cimentos’ long-term sustainability commitments.
