Votorantim Cimentos posts 36% profit growth in 3Q23

Votorantim Cimentos has posted revenue of BRL7.4bn (US$1.51bn) in the third quarter of 2023, down three per cent compared to the same period a year earlier. The decline has been attributed to “market dynamics and the negative impact of the appreciation of the Real.” Net profit over the three-month period came in at BRL824m, marking a 36 per cent increase YoY. Cement sales in the 3Q23 stood at 10.3Mt, a one per cent uptick on the same period in 2022. 

Consolidated adjusted EBITDA reached BRL1.9bn in the 3Q23, a nine per cent increase YoY, driven by better operating incomes combined with margin management. The EBITDA margin over the quarter was 26 per cent, up three percentage points on the 3Q22. 

“The positive income for both the third quarter and the first nine months of 2023 reinforce our operational leverage and the execution of our strategic mandate, with discipline and resilience. Despite the uncertain global macroeconomic scenario and market challenges, our geographic and product diversification improves the company’s ability to face challenges and be ready to capture good opportunities,” says Osvaldo Ayres, global CEO, Votorantim Cimentos. 

Regional picture
In Brazil Votorantim Cimentos’ net revenue was BRL3.5bn in the 3Q23, a decrease of five per cent compared to the same period in 2022. Adjusted EBITDA for the quarter was BRL805m, impacted by the market dynamics in the country. Cost reductions, mainly in petcoke and power, partially mitigated the operating income drop, according to the company. 

Net revenue in the North America market in the 3Q23 reached BRL2.3bn, marking a seven per cent decline YoY, but five per cent growth in consolidated 2023 compared to the same period in 2022. Price dynamics over the year partially mitigated the cooling of the market and the negative impact of the exchange rate variation in the period.

In Europe, Asia and Africa, net revenue advanced 31 per cent YoY in the 3Q23 reaching BRL1.2bn. The growth was driven primarily by the market recovery in Turkey, which recorded an increase in sales volumes and positive price dynamics, and in Spain, with the full integration of the new plant in Málaga, an acquisition completed in November 2022. The region’s adjusted EBITDA was BRL256m in the 3Q23, up 50 per cent on the same period last year, mainly as a result of the positive market dynamics in the region, as well as the synergies already realised by the acquisitions in Spain and the reduction in fuel, energy and freight costs.

Revenue in Latin America came in at BRL239m in the 3Q23, an advance of 11 per cent on the same period a year earlier. According to the company, the positive income was due to better market dynamics in Uruguay and favourable demand in Bolivia. Adjusted EBITDA in the region was BRL47m over the quarter, up 21 per cent YoY.