The Votorantim Group achieved a 7% y/y increase in net revenues in 2014, which reached approximately R$28.1 billion. This growth has been attributed to higher prices across most of the group’s businesses. The cement division represented 43% of gross revenues in 2014, with metals, mining, long steel and energy accounting for 30%, 6%, 13% and 8%, respectively.
Good operating performances by all of the group’s companies helped to drive a 606% y/y improvement in net income, which came in at R$1.68 billion. Meanwhile, adjusted EBITDA totalled R$7.1 billion, 32% higher than in 2013. The increase is due to higher prices, cost control and the sale of energy surplus. Votorantim Cimentos accounted for 49% of the group’s EBITDA in 2014, the metals segment for 30%, mining for 9%, steel for 6% and energy for 6%.
CAPEX of R$2.5 billion was reported for the period – 75% for maintenance, modernisation, health and safety, and environmental projects and 25% for expansion projects. Cement accounted for 74% the expansion projects as Votorantim works to increase its cement production capacity in the northeast, north and midwest of Brazil.
Votorantim’s cement segment saw net revenues rise by 5% y/y to R$13 billion in 2014. This increase is largely the result of higher prices in all of the company’s operations except for Spain and North America. Consolidated EBITDA was in line with 2013 at R$3.6 million. Higher EBITDA in Votorantim Cimentos’ operations in Europe, Africa and Asia helped to somewhat mitigate a fall in EBITDA in Brazil and North America, caused by lower sales volumes and the impact of a severe winter upon production costs, respectively.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/04032015/votorantim-releases-2014-results-449/