Votorantim Cimentos Closes 2Q23 with R$470 Million Net Profit, a 28% Increase Compared to 2Q2

August 10, 2023, 12:30 PM
  • Global net revenue was R$6.9 billion, a 3% increase compared to 2Q22.
  • Adjusted EBITDA totaled R$1.6 billion, up 17% over the same period in 2022.
  • EBITDA margin was 23%, 3 percentage points higher than 2Q22.
  • At the end of the first semester, leverage, measured by the net debt/adjusted EBITDA ratio, was 1.64x, 0.14x and 0.35x lower than 1Q23 and 2Q22, respectively.
  • S&P Global Ratings raised Votorantim Cimentos’ independent credit rating from BB+ to BBB-, also upgrading the company’s classification to investment grade in the independent credit category.
  • In July, Votorantim Cimentos signed a US$150 million financing agreement, 10-year sustainability-linked loan with the International Finance Corporation (IFC) to finance a project to modernize the Salto de Pirapora cement plant.


Votorantim Cimentos ended the second quarter of 2023 with R$470 million net profit, a 28% increase compared to R$366 million in the same period last year. The company’s global net revenue in the quarter was R$ 6.9 billion, an increase of 3% compared to 2Q22, primarily due to the volume added by the Malaga plant (south of Spain), acquired in November 2022. The company’s global cement sales in 2Q23 totaled 9.5 million tonnes, a slight decrease of 1% compared to 2Q22.

“In 2023, we leveraged the synergies brought by the more than R$5 billion invested in mergers and acquisitions in the last two years, and increased our investments in competitiveness, adjacent businesses and decarbonization. At the same time, we maintained our traditional financial discipline, which, combined with efficient margin management and high performance in countries with strong currencies, led us to our positive results in the first half of the year,” said Osvaldo Ayres Filho, global CEO of Votorantim Cimentos.

The company ended the second quarter with R$1.6 billion consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), up 17% compared to 2Q22, thanks to better operating results, mainly in the North America region (VCNA) and the Europe, Africa and Asia region (VCEAA) and the positive impact of the new plant in Spain. The EBITDA margin was 23%, an increase of 3 percentage points compared to the second quarter of 2022.

Leverage, measured by the net debt/adjusted EBITDA ratio, was 1.64x at the end of first half of 2023, in line with investment grade indicators and the company’s financial policy. This result represents a reduction of 0.14x and 0.35x compared to 1Q23 and 2Q22, respectively.

In June, S&P Global Ratings raised the independent credit profile of Votorantim Cimentos from BB+ to BBB-, classifying the company’s independent credit as investment grade. S&P also reaffirmed the company’s BBB- global credit rating and updated the outlook to positive. Moody’s also reaffirmed Votorantim Cimentos’ Baa3 global credit rating with a stable outlook.

“We continue to operate within solid financial metrics and high liquidity, which led to the upgrade of our credit rating by S&P Global Ratings and the confirmation of our score by Moody’s. We ended the semester with lower leverage and maintained our financial discipline. Another highlight was our financing agreement with the International Finance Corporation, which illustrates the alignment of finance and sustainability to advance the company’s ESG and decarbonization agendas,” said Bianca Nasser, global CFO of Votorantim Cimentos.

In July, Votorantim Cimentos signed a ten-year, US$150 million financing agreement with the International Finance Corporation (IFC), the largest global development institution focused on the private sector in emerging countries and a member of the World Bank Group. Votorantim Cimentos is the first Brazilian cement company to sign a contract with IFC linked to sustainability indicators. The investment will be allocated to the Salto de Pirapora plant to increase its thermal substitution rate and reduce its CO2 emissions. The project is part of the company’s long-term sustainability strategy and is expected to be completed by 2028.

Performance by Region

In Brazil, Votorantim Cimentos’ net revenue in 2Q23 was R$3.2 billion, similar to 2Q22 despite a more challenging demand environment. Adjusted EBITDA, which was impacted by market dynamics in the cement business, totaled R$567 million. The growth in adjacent businesses partially mitigated the operating results.

In North America, net revenue in 2Q23 was R$2.3 billion, up 12% compared to 2Q22. This result was driven by price management in Canada and the United States, and solid demand in the U.S. during the quarter. Adjusted EBITDA in the region was R$647 million, a 25% increase compared to the same period in 2022, which boosted margin growth.

In Europe, Asia and Africa, Votorantim Cimentos’ net revenue in the second quarter of 2023 increased 16% compared to 2Q22, totaling R$975 million. This positive result was primarily driven by price dynamics in all countries where the company operates and by positive market dynamics in Spain, in addition to the complete integration of a new plant in Malaga acquired in November 2022. Adjusted EBITDA in the region was R$312 million, an 87% increase compared to 2Q22 mainly due to positive margin dynamics in all countries, especially Spain and Turkey, in addition to synergies leveraged through the acquisitions carried out in Spain.

In Latin America, net revenue in 2Q23 was R$200 million. The 2% decrease compared to 2Q22 resulted from market dynamics that led to a drop in volume in Uruguay and price reductions in Bolivia. Adjusted EBITDA in the region was R$37 million, down 11% compared to the same period last year. In addition to macroeconomic variables and strong competition in Uruguay and Bolivia, the pressure of cost inflation and scheduled maintenance in the quarter had a negative impact on the results. On the other hand, the company has already been leveraging synergies brought by the concentration of its industrial activities in the city of Minas, Uruguay.