Global net revenue was R$6.4 billion, an increase of 24% compared to 3Q2020.
Adjusted EBITDA was R$1.7 billion, an 8% growth over the same period last year.
EBITDA margin was 26% in the third quarter, compared to 30% in 3Q2020, as a result of cost inflation.
Leverage, measured by the net debt/EBITDA ratio, was 1.54x, down 0.42x compared to the end of 2020, in line with the company's financial policy.
In October, the company completed the full acquisition of Cementos Balboa, in Spain.
Votorantim Cimentos, a building materials and sustainable solutions company, posted net income of R$1.1 billion in the third quarter of 2021, an increase of 57% over the same period last year. The company had global net revenue of R$6.4 billion in the third quarter of the year, an increase of 24% compared to 3Q2020, primarily due to an increase in sales volume and favorable price dynamics.
The company's global cement sales totaled 10.4 million tonnes in the third quarter of this year, a 7% increase compared to the 9.7 million tonnes sold in 3Q2020. The recovery of the global economy continues, but at a slower pace, as a result of the COVID-19 pandemic.
"Our results in the quarter were solid and in line with our expectations, even when considering the strong comparison base in the third quarter of 2020. We increased our production capacity and remained focused on serving the markets where we operate. We have a challenging scenario ahead and are already feeling the effects of cost inflation. However, the company is prepared, with good operational and financial metrics, which give us confidence to continue with our long-term strategic plan," said the Global CEO of Votorantim Cimentos, Marcelo Castelli.
Votorantim Cimentos ended the third quarter of this year with adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of R$1.7 billion (an 8% growth compared to 3Q2020) and EBITDA margin of 26% (down 4 percentage points over 3Q2020), as a result of cost inflation. Leverage, measured by the net debt/adjusted EBITDA ratio, was 1.54x, down 0.42x compared to December 2020, in line with the company's financial policy.
"Our leverage has been declining since the end of last year. Also, we have maintained our traditional financial discipline and active debt management, which supported all international acquisitions announced during the first nine months of the year, such as the recently concluded acquisition of Cementos Balboa, in Spain," said the Global CFO of Votorantim Cimentos, Osvaldo Ayres Filho.
In October, Votorantim Cimentos, through its Spanish subsidiary Corporacion Noroeste, completed the full acquisition of Cementos Balboa, in Spain. Cementos Balboa has a modern integrated cement plant located in Alconera, in the province of Badajoz, in the Extremadura region (Southwestern Spain), with an installed production capacity of 1.6 million tonnes of cement per year. This acquisition complements Votorantim Cimentos' operations in Spain by increasing its operational efficiency and improving its distribution network, in addition to strengthening its presence in the Iberian Peninsula market.
Reinforcing its commitment to ESG (environmental, social and governance) standards, in October, Votorantim Cimentos issued its 13th sustainability-linked debenture, aligned with ESG principles, in the amount of R$500 million.
In addition, the company joined the Business Ambition for 1.5°C campaign and is now part of a select group of world-class companies that are committed to advancing toward a low-carbon economy and aiming to keep global warming to a maximum of 1.5°C by 2050. In line with this goal, Votorantim Cimentos formalized its commitment to aligning its CO2 emission reduction targets with the Science-Based Targets Initiative (SBTi). The company also joined UN's Race to Zero campaign, which promotes and encourages more companies, governments, and financial and educational institutions to unite and work for a healthier, net zero carbon emissions planet.
Performance by region – In Brazil, Votorantim Cimentos' net revenue in the quarter was R$2.9 billion, an increase of 24% compared to 3Q2020. Adjusted EBITDA was R$672 million, an increase of 11% compared to the same quarter last year. The positive results in the third quarter of 2021 are primarily due to growth in sales volume and prices, even when considering the strong comparison base in 3Q20 and economic dynamics with higher costs and higher inflation.
The Brazilian cement market ended the first nine months of 2021 with a total of 49.2 million tonnes of cement sold, an increase of 9.7% over the same period last year, according to data from the National Cement Association (SNIC). The strong growth experienced in the first half of 2021, primarily due to a low comparison base in the same period last year, now follows a deceleration curve, as anticipated by the cement industry.
In North America, the company's net revenue was R$ 2.3 billion in the third quarter of 2021, an increase of 25% compared to 3Q2020, primarily due to the incorporation of McInnis volumes, in addition to positive market dynamics in Canada and the United States. Adjusted EBITDA grew 11% compared to the third quarter of 2020, reaching R$747 million in 3Q2021 against R$671 million in the same period of 2020.
In Europe, Africa and Asia, Votorantim Cimentos' net revenue increased 25% compared to 3Q2020, reaching R$ 1 billion. The positive results are due to higher demand in Morocco, Turkey and Spain compared to the same period last year, when countries were still being impacted by COVID-19 restrictions, along with better price dynamics. Adjusted EBITDA was R$154 million in 3Q2021, a 20% reduction compared to the third quarter of 2020. The results in the region were also affected by energy costs and scheduled maintenance.
In Latin America, the company's net revenue in the third quarter was R$ 254 million, an increase of 2% compared to 2Q2020. The positive results were primarily driven by a recovery in the Bolivian market, which had been impacted by COVID-19 restrictions last year, and a strong demand for adjacent products in Uruguay. Adjusted EBITDA was R$85 million, up 19% compared to 3Q2020.