Votorantim Cimentos posted a net profit of 2.6 billion reais in 2023, more than double the 1.1 billion in 2022, supported by operational and financial improvements, the country’s largest input producer said on Thursday.
Operating results measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 18% to a record 5.8 billion reais, the company said, citing “margin management” in operations in North America and the region including Europe, Asia and Africa.
The company, which has submitted an offer to acquire part of Intercement Brasil’s assets, said that in North America the market “is experiencing a positive cycle with high prices and stable demand, despite inflationary pressures and markets that operate without actions”. In the Europe, Asia and Africa region, Votorantim Cimentos’ EBITDA increased by 66%, driven by the Turkish market.
In Brazil, the company’s main market, the sector saw a sales decline of 1.7% in 2023, but the sector’s outlook is for growth of 2% this year.
The company, in turn, increased prices in the country during the year and achieved “historic record revenues from new business”. The country’s revenues ended 2023 at 12.8 billion reais, up 1% from 2022.
On a consolidated basis, Votorantim Cimentos recorded net sales of nearly 26.7 billion reais last year, 3% higher than its 2022 performance.
The company ended 2023 with 5.9 billion reais in cash, while also having an operating revolving credit line of 1.2 billion and a revolving line of 1.3 billion. Leverage was 1.28x, lower than the 1.50x level at the end of September and the 1.55x level at the end of 2022.
Source: Terra
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