Votorantim Cimentos closed the second quarter of 2024 with notable growth across key financial metrics, including net revenue, net profit, and sales volume, supported by strategic investments and geographic diversification. The company’s consolidated global net revenue for the period reached R$7 billion, reflecting a 1% increase compared to the second quarter of 2023, in local currency. This growth was largely driven by positive performances in operations across Europe, Asia, Africa, and Brazil.
The company’s net profit for the quarter surged by 10%, totaling R$515 million, up from R$470 million in the same period last year. Votorantim Cimentos also reported a 2% increase in global cement sales, with volumes reaching 9.6 million tons in 2Q24. The company attributed these gains to its diversified portfolio and strategic capital allocation.
Adjusted EBITDA for the quarter was R$1.6 billion, showing a slight 2% decrease in local currency, but remaining stable in Brazilian Reais compared to 2Q23. The EBITDA margin held steady at 23%, demonstrating resilience amid market challenges.
Investment in capital expenditures (Capex) rose significantly, with Votorantim Cimentos recording a 43% increase to R$679 million. This surge in investment aligns with the company’s strategy to enhance structural competitiveness and accelerate modernization projects. Key initiatives included the completion of the first phase of a modernization project at the Salto de Pirapora plant in Brazil and an upgrade to the St. Marys plant in Canada, both aimed at increasing the use of alternative fuels and advancing decarbonization efforts.
Looking ahead, Votorantim Cimentos announced a R$200 million investment to expand its Edealina plant in Brazil, doubling its production capacity by 2025. This project is part of a broader R$5 billion investment plan over the next five years, targeting growth and competitiveness in Brazil.
Despite a slight increase in leverage, with the net debt/adjusted EBITDA ratio rising to 1.88x, Votorantim Cimentos maintained a strong liquidity position, with R$4.9 billion in cash and financial investments. This liquidity ensures the company can meet its financial obligations for approximately four years.
Global CEO Osvaldo Ayres highlighted the company’s solid performance and ongoing commitment to its strategic goals: “Our results for the first half of 2024 reflect the resilience and effectiveness of our diversification and capital allocation strategy. We are focused on strengthening our structural competitiveness, advancing decarbonization projects, and maintaining financial discipline.”
The quarter also saw Moody’s reaffirm Votorantim Cimentos’ global credit rating at “Baa3” with a stable outlook, preserving the company’s investment-grade status. Additionally, the company announced the sale of its assets in Tunisia to Sinoma Cement Co., Ltd, in line with its strategy to optimize its global portfolio.
Regional performance varied, with stable revenue in Brazil and mixed results in other markets. While North America experienced a 13% revenue decline due to demand slowdown, Europe, Asia, and Africa saw a 22% revenue increase, driven by higher sales volumes and active price management. Latin America reported modest growth in net revenue but faced challenges with adjusted EBITDA due to market conditions and maintenance costs.
Overall, Votorantim Cimentos’ second-quarter results underscore its robust position and continued focus on long-term growth and sustainability.
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