In Brazil, Votorantim Cimentos net sales in 1Q22 were BRL 2.7 billion (US$525.6 million), an increase of 21% compared to 1Q21. Despite local market instability, macro-economic pressures and a solid basis of comparison with the same period last year, the increase in turnover is mainly due to the combination of a sales volume and a higher prices.
Adjusted EBITDA for the quarter was BRL 359 million, down 40% compared to March 2021 due to cost pressure caused by raw material prices, local inflation and the effect of a non-recurring item in 1Q21 which increased EBITDA by BRL 58 million.
In North America, net sales were BRL 1 billion in the first three months of 2022, an increase of 24% compared to 1Q21, due to additional volumes resulting from acquisitions made l year and strong market momentum in Canada and the United States. The region’s Adjusted EBITDA was BRL -122 million in the first quarter, compared to positive BRL 10 million during the same period in 2021. This reversal is due to more difficult weather conditions in the Northern Hemisphere, which have had a significant impact on operating results, Votorantim said.
In the region spanning Europe, Asia and Africa, Votorantim Cimentos net sales increased 10% in the first quarter to BRL 697 million, driven by increased volumes in nearly all countries in the region and the addition of Cementos Balboa, in Spain. The region’s Adjusted EBITDA was BRL 133 million in the quarter, down 46% from 1Q21, when a non-recurring item (land sale in Turkey) led to an increase in l EBITDA of nearly BRL 74 million. Market momentum was unable to alleviate pressure on petroleum coke and energy costs, nor the impact of a truckers’ strike in Spain in mid-March.
In Latin America, net revenue in 1Q22 was BRL 189 million, down 17% compared to the first quarter of 2021. Worse market dynamics in Uruguay lowered the result, an effect that was partially compensated by the Bolivian market which, despite the macroeconomic challenges, has experienced a positive trend, with better volumes and prices, since last year. The region’s adjusted EBITDA was R$34 million in the first quarter, down 50% from the same period last year. Besides the situation in Uruguay, the devaluation of the real also had a negative effect on the results in the region.
Published under Cement News