Votorantim records strong domestic performance in 3Q24

Votorantim Group’s regional performance in the 3Q24 was headed by its domestic sales in Brazil. Votorantim Cimentos’ net revenue in Brazil was BRL3.5bn in 3Q24, on par with the same period last year. Adjusted EBITDA in the quarter was BRL848m, up five per cent compared to 3Q23, due to lower variable costs and higher sales volume, resulting in margin growth in the quarter. The National Cement Industry Union (SNIC) revised its 2024 year-end growth expectation for the sector to 2.8 per cent, from 1.4 per cent in 2023.

In North America, net revenue totalled BRL2.6bn in the 3Q24, a slight decrease of one per cent compared to 3Q23, excluding foreign exchange rate variations, due to a market slowdown, which was partially offset by higher prices. Adjusted EBITDA in the region was BRL923m, up eight per cent in local currency compared to 3Q23, driven by improved margins and the sale of property from the concrete business.

In Europe and Asia, net revenue in 3Q24 was up 10 per cent compared to 3Q23, totalling BRL1.1bn, excluding foreign exchange rate variations. The increase resulted from higher sales volume and positive price dynamics, both in Spain and Turkey. Adjusted EBITDA in the region was BRL332m, up 59 per cent compared to the same period last year in local currency. The positive operating result was due to market dynamics and lower variable costs. As Tunisia and Morocco are now classified as discontinued operations, the consolidated information does not include the results of these countries. Dividends received from these operations are included as part of adjusted EBITDA from continuing operations.

Votorantim Cimentos announced the launch of Blenture, a new cement and concrete brand in the Iberian Peninsula (Portugal and Spain), designed to reduce CO₂ emissions and support more sustainable construction. Blenture is the result of a significant investment in research and development. It is in line with the company’s sustainability commitments and decarbonisation strategy, which is based on process efficiency, the use of recycled raw materials and the consumption of non-fossil fuels to support a circular economy and the use of renewable energy. Blenture cement and concrete offer competitive solutions for many applications, with the same quality, resistance and performance, combined with a 30 per cent reduction in carbon footprint. 

In Latin America, net revenue in the third quarter was BRL244m, down six per cent compared to 3Q23 in local currency, due to market conditions in both Uruguay and Bolivia. Adjusted EBITDA in the region was BRL62min 3Q24, up 18 per cent compared to the same period last year, excluding foreign exchange rate variations. The increase was due to the sale of an asset in Uruguay, which offset the negative results driven by challenging market dynamics.