Votorantim Cimentos reports net revenue of BRL7bn in the 2Q24

Votorantim Cimentos ended the 2Q24 with a higher net revenue from increased volumes, supported by geographic and product diversification. The company recorded global net revenue of BRL7bn (US$1.27bn) in the 2Q24, a one per cent increase compared to the same period last year, excluding the effect of exchange rate variation. This result is mainly due to the positive performance of operations in Europe, Asia, Africa and Brazil. In the 2Q24 the company’s global cement sales totalled 9.6Mt, a two per cent increase compared to the 2Q23.

Consolidated adjusted EBITDA reached BRL1.6bn in the second quarter, a two per cent decrease in local currency and stable in the consolidation in the BRL currency compared to the 2Q23. The EBITDA margin was 23 per cent in the 2Q24, also stable compared to the 2Q23. Votorantim Cimentos’ net profit was BRL515m in 2Q24, 10 per cent higher compared to BRL470m in the 2Q23.

Leverage, measured by the net debt/adjusted EBITDA ratio, ended the second quarter at 1.88x, up 0.24x than the same period in 2023 but still in line with the company’s financial policy and aligned with investment-grade indicators.  

Capex investments
At the end of the 2Q24, Votorantim Cimentos' investments (Capex) added up to BRL679m, representing a 43 per cent YoY increase. This positive development is attributed mainly to the company's global strategy for investments in modernisation and structural competitiveness, in addition to projects linked to the company’s decarbonisation commitments. The second quarte saw the start-up of the first phase of the modernisation project of the Salto de Pirapora plant in São Paulo state, Brazil. The company also concluded the investment in the cement kiln at the St Marys plant in Canada, which aims to expand the co-processing capacity of alternative fuels with plastic waste and biomass. These two initiatives improved Votorantim Cimentos’ thermal substitution rate, contributing to the company’s decarbonisation journey and sustainability commitments. Expansion projects accounted for 13 per cent of the total capital invested in the 2Q24.

In July 2024 Votorantim Cimentos announced an expansion in Edealina, Goiás, Brazil, with an investment of BRL200m for the construction of a new cement grinding line that will double the plant's cement capacity to 2Mta. The completion of this project is expected for the 2H25. This amount is part of a comprehensive BRL5bn investment programme for the next five years, focussed on growth and structural competitiveness of Votorantim Cimentos’ operations in Brazil. This programme, with BRL1.7bn already in progress, covers the company’s operations in all regions of the country, with structural investments aimed at increasing cement production capacity, competitiveness, the use of alternative fuels and reducing CO₂ emissions.

“At the end of the first half of the year, our results demonstrate the resilience and effectiveness of our diversification and capital allocation strategy. We remain focused on strengthening our structural competitiveness, advancing decarbonisation projects and new businesses, while maintaining our solid financial discipline. We stay on course with our investment plan, aligned with our global strategy and strategic mandate,” said Osvaldo Ayres, global CEO of Votorantim Cimentos.

In July, Votorantim Cimentos also signed an agreement for the full sale of its assets located in Tunisia to Sinoma Cement Co Ltd, the cement-based building materials enterprise headquartered in China.