Votorantim Cimentos posts BRL1bn net profit in 3Q24

Votorantim Cimentos reports it completed its 3Q24 results with a net profit of BRL1bn (US$17.3m), a 24 per cent increase compared to BRL824m in the same period last year, primarily due to better operating results. 

The company’s global net revenue in the quarter totalled BRL7.6bn, on par with 3Q23, excluding foreign exchange rate variations. This result was primarily due to positive performance in countries in Europe and Asia, and stability in Brazil, which offset the results in North America and Latin America. The company’s global cement sales in the 3Q24 totalled 10Mt, up three per cent compared to the same period last year. 

Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) were BRL2.2bn in the 3Q24, up 11 per cent compared to the 3Q23 in local currency. The increase resulted mostly from the balanced portfolio, especially with regard to operating results in Europe and Asia, operational efficiency combined with lower variable costs. The EBITDA margin in the period was 29 per cent, up three percentage points over the 3Q23. 

Votorantim Cimentos’ capital expenditure in the 3Q24 totalled BRL635m, 22 per cent higher than in the 3Q23. This increase was primarily driven by the company’s global strategy of investing in modernisation and structural competitiveness, in addition to projects linked to its decarbonisation commitments. The previously-announced BRL5bn investment plan in Brazil continues to be implemented.

“Votorantim Cimentos posted record operating results in the quarter, with significant margin growth, as a result of our diversification and higher sales volumes. In line with our strategic mandate and comprehensive growth and structural competitiveness programme, we increased our investment in the quarter to further strengthen our operations, especially in Brazil, without compromising our financial discipline,” said Osvaldo Ayres, global CEO of Votorantim Cimentos.

Divestments
In July 2024 Votorantim Cimentos signed an agreement for the full sale of its assets in Tunisia. The completion of the transaction, including the effective transfer of operations in the country and the payment of proceeds, is subject to customary condition precedents. In September, Votorantim Cimentos signed an agreement for the full sale of the shares of its subsidiary that holds all assets in Morocco. 

The decision to divest in Tunisia and Morocco is in line with Votorantim Cimentos’ strategy of maximising value for its shareholders and balancing its geographic distribution between mature and emerging markets, optimising the risk management of the company’s established portfolio. During the assessment of the transactions, all Votorantim Cimentos plants and offices in the two countries will continue to operate normally.