Our 2023 financial results

March 21, 2024, 02:16 PM
  • Our consolidated global net revenue in the year was R$26.7 billion, up 3% compared to 2022.
  • Record adjusted EBITDA of R$5.8 billion, an increase of 18% over the previous year.
  • Our EBITDA margin was 22%, up three percentage points compared to 2022.
  • The leverage ratio (net debt/adjusted EBITDA ratio) was 1.28x, the lowest in our company’s history.
  • Our investments (Capex) totaled R$2.4 billion, an increase of 18% compared to the previous year, in line with our strategy to drive modernization, structural competitiveness and productivity.
  • The year was marked by historic results from the North America and Europe operations and growth in new businesses in Brazil.
  • We maintained our investment grade rating by the three main global rating agencies. S&P Global Ratings upgraded our credit, both in the individual and global profiles, and Fitch Rating updated its outlook to “positive”.
  • We received an A score on climate change by CDP.

We ended 2023 with a net profit of R$2.6 billion, an increase of 123% compared to 2022, primarily due to better operating results during the year. Consolidated global net revenue in 2023 was R$26.7 billion, up 3% compared to 2022, as a result of favorable price and market dynamics primarily in the North America and Europe, Asia and Africa regions. In Brazil, results were also positive, thanks to higher-than-expected growth in new businesses. The total sales volume in the countries where we operates totaled 37 million tonnes of cement, slightly higher than the previous year. 

“We ended the year with strong results, driven by geographic diversification, growth in new businesses and the capture of synergies from acquisitions made in recent years. We also advanced our investments in competitiveness, decarbonization and new businesses, maintaining focus on our strategic mandate, financial discipline and market position,” said Osvaldo Ayres, our global CEO.  

Our adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached a record R$5.8 billion in 2023, 18% higher than the previous year, due to cost reductions and margin management, in addition to the synergies captured from the latest acquisitions. Consequently, EBITDA margin in the year was 22%, an increase of three percentage points compared to 2022. 

We ended 2023 with a 1.28x leverage (net debt/adjusted EBITDA ratio), down 0.27x compared to 2022. At the end of 2023, our cash balance and financial investments totaled R$5.9 billion, enough to meet our financial obligations for approximately the next four years. 

“Our leverage ratio went down during the year, in line with better operating results and lower net debt in the period, reaching the company’s historical low. In 2023, we obtained registration as a Category A Publicly-Held Company with the Brazilian Securities and Exchange Commission (CVM, in Portuguese), another step in the evolution of our corporate governance. This move expanded access to the fixed income market in Brazil, in line with our strategy to diversify our funding sources and investor base. We had solid liquidity throughout the year and also maintained our investment grade rating by the main rating agencies,” said Bianca Nasser, our global CFO. 

Last year, our investments in expansions, modernization and business support (Capex) totaled R$2.4 billion, an 18% growth compared to 2022. This increase is in line with our global strategy of investments in modernizations and structural competitiveness focusing on productivity, such as the project in the Salto de Pirapora plant, in the interior of São Paulo, in addition to our initiatives linked to decarbonization commitments. Investment projects focused on alternative fuels, one of our decarbonization pillars, are also being carried out in all regions. 


Performance by Region 

In Brazil, the net revenue totaled R$12.8 billion, an increase of 1% compared to 2022, as a result of the drop in demand in the market, despite favorable price dynamics and the increase in revenue from new businesses. According to the National Cement Industry Association (SNIC), the cement sector in Brazil experienced a retraction of 1.7% in 2023. The Association believes that the Brazilian cement industry has not yet reflected the positive economic developments that took place during the year and is still being impacted by the decline in family income, in addition to the extreme weather conditions that the country experienced in 2023. 

Our adjusted EBITDA in Brazil totaled R$2.5 billion, a slightly better (1%) operating result than 2022. Margin management, lower fuel and energy costs, and strong growth in new businesses, which increased by 58% compared to 2022, contributed to this result. Adjusted EBITDA from new businesses represented 17% of our total adjusted EBITDA in Brazil, compared to 11% in 2022. 

In North America, net revenue totaled R$7.8 billion in 2023, up 5% over 2022, as a result of price dynamics that offset the slightly lower demand. The region’s adjusted EBITDA was R$1.9 billion in 2023, up 23%, primarily due to price management, combined with cost reductions throughout the year. Both numbers negatively impacted the consolidation in reais due to the depreciation of the dollar in 2023. 

In Europe, Asia and Africa, net revenue increased 26% in 2023 compared to 2022, totaling R$4.3 billion, primarily as a result of the market recovery in Turkey, with higher volumes and prices, as well as additional volumes resulting from the integration of the new plant in Malaga (Spain). 

Adjusted EBITDA in the region was R$1.1 billion, a 66% growth compared to the previous year. The strong result was driven by positive market dynamics in most countries in Europe, Asia and Africa, price management and synergies captured from recent acquisitions. Additionally, reductions in costs, especially of fuel, energy and freight, further boosted the year’s results. 

In Latin America, net revenue was R$869 million in 2023, up 7% compared to 2022, as a result of improved market conditions in Bolivia and Uruguay. Adjusted EBITDA in 2023 was R$164 million, 18% higher than in 2022. Positive dynamics in Bolivia and Uruguay, as well as cost reductions in Uruguay, boosted the results. The Uruguayan operation was positively impacted by the operational synergies that are being captured from the concentration of industrial activities in the city of Minas, a project started in early 2023. 



In addition to solid financial results, we reduced our net CO2 emissions by a record 4% in 2023, as a result of our decarbonization initiatives and investments. 

In early 2023, we inaugurated the Ventos do Piauí wind farm, a project in partnership with Auren in the northeast of Brazil, adding 55 MW to our installed energy generation capacity in the country and increasing the percentage of renewable energy in our energy matrix to 49%. 

In July, we signed a financing agreement in the form of a sustainability-linked loan with the International Finance Corporation (IFC), the largest development organization focused on the private sector in emerging countries and a member of the World Bank Group. We were the first Brazilian cement company to sign a contract linked to sustainability indicators with the IFC. The US$150 million will be invested in the Salto de Pirapora (SP) plant to increase the rate of fossil fuel substitution to reduce CO2 emissions. 

In 2024, as part of its structural competitiveness program, we signed an agreement to form a joint venture that will build a solar energy complex in the town of Paracatu (MG), with an estimated 470 MWp installed capacity allocated to our company. We also signed power purchase agreements, scheduled to start in 2026, to supply 100 MWm of solar energy over 15 years to help power our production sites in Brazil. 

In February 2024, we received an A score in the assessment of corporate transparency and climate change performance by CDP, one of the most respected international non-profit organizations that runs a global disclosure system for companies, cities, states and regions to manage their environmental impacts. Based on data reported through CDP’s 2023 Climate Change questionnaire, the A score earned by us placed it as the only Brazilian cement company to be part of a select number of businesses around the world to rank at the top of the list for exemplifying market best practices. 

Additionally, we were once again recognized by Sustainalytics as the only Top-Rated Industry company in the building materials sector in Latin America, based on an assessment of its 2023 ESG performance. 


R$5 billion investment in growth and structural competitiveness 

This past January, we announced a R$5 billion investment in a comprehensive growth and structural competitiveness program involving our company’s operations in Brazil. Of this total, R$1.5 billion has already been invested as part of the program, which includes structural investments in our company operations in all regions of the country, to increase competitiveness and co-processing capacity and significantly reduce CO2 emissions. These investments will also add 3 million tonnes of cement per year to our current production capacity in Brazil. 

The program includes an additional investment of R$300 million to expand the production capacity of the Salto de Pirapora plant, in the interior of the state of São Paulo. The construction of a new cement grinding facility will add 1 million tonne per year to the site’s production capacity. Together with another company site located in the Santa Helena neighborhood, in the neighboring city of Votorantim, the Salto de Pirapora plant forms the Salto-Santa Helena complex, which will have its production capacity increased by approximately 20%. Construction is scheduled to start in the first half of this year and expected to be completed in the second half of 2025.