Votorantim Cimentos announce first quarter results

Votorantim Cimentos, a building materials and sustainable solutions company, ended the first quarter of 2025 with global net revenue of R$5.6 billion, up 1% compared to the same period last year in local currency, excluding the effects of changes in exchange rates. The result was driven by higher sales volume and geographic diversification, with positive demand in Brazil and Spain and positive price dynamics in most countries. In the first quarter, Votorantim Cimentos' global cement sales totaled 7.7 million t, up 2% compared to 1Q24.

Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$598 million in the first three months of 2025, down 14% in local currency compared to the same period in 2024, due to weather-related factors in North America and plant maintenance schedules. The EBITDA margin in the quarter was 11%, down two percentage points compared to 2024. Net income was negative R$325 million in the first quarter of 2025, compared to positive R$17 million in the same period last year. The profit was impacted by operating results, higher depreciation in the quarter (primarily due to the increase in the asset base resulting from recent investments), changes in exchange rates and a review of the useful life of fixed assets, in addition to impacts from the completion of the sale of assets in Tunisia. Additionally, in April, we made an extraordinary dividend payment to the majority shareholder in the amount of R$683 million.

Leverage, measured by the net debt/adjusted EBITDA ratio, was 1.95x at the end of the quarter, an increase of 0.09x compared to the same period in 2024, considering only continuing operations. This increase was due to changes in exchange rates and is in line with the company’s financial policy and investment grade metrics. Votorantim Cimentos reached the end of 1Q25 with strong liquidity, with cash and financial investments totaling R$4.1 billion, which will enable the company to meet its financial obligations for the next three years.

“We ended the quarter with an increase in net revenue, due to the growth in sales volume and our geographic diversification strategy. Our financial strength and discipline in capital allocation have enabled us to navigate this volatile global environment. At the same time, we continued to maintain our focus on the long term through our program of investments in capacity expansion, structural competitiveness and acceleration of new businesses,” said Osvaldo Ayres, global CEO of Votorantim Cimentos.

Votorantim Cimentos’ investments (Capex) in the first quarter of the year totaled R$548 million, an increase of 35% compared to the same period in 2024. This increase was driven by Votorantim Cimentos' global strategy of investments in modernisation, structural competitiveness and decarbonisation. The company started investing in the modernisation of the kilns of its Alconera and Málaga plants, in Spain, to expand the use of alternative fuels, with the goal of increasing thermal substitution in these sites, helping reduce CO2 emissions. In Brazil, highlights included capacity expansion projects at the Salto de Pirapora (SP) and Edealina (GO) plants, which are expected to start operations in the second half of 2025 and the first quarter of 2026, respectively.

In April, the credit rating agencies Moody’s and S&P Ratings reaffirmed Votorantim Cimentos’ global credit rating at “Baa3” and “BBB”, respectively, with a stable outlook.

“The company’s financial discipline is confirmed by its investment grade credit ratings and by the opportunity to issue debt at low spread levels,” said Antonio Pelicano, Global CFO of Votorantim Cimentos.

In May 2025, the company issued debentures, non-convertible into shares, in a single series, under the terms of CVM Resolution 160/2022, in the total amount of R$1 billion and maturing on April 16, 2032, paid at a DI rate + 0.67% per year. This new fundraising transaction is in line with the company’s debt management strategy, focused on reducing costs and extending the debt profile.

Performance by region

In Brazil, Votorantim Cimentos’ net revenue in the first quarter of 2025 was R$3.1 billion, up 5% compared to 1Q24. Adjusted EBITDA was R$427 million, down 17% compared to 1Q24, due to plant maintenance schedules and a non-recurring item that had a positive impact on the first quarter of 2024.

In North America, net revenue totaled R$1.2 billion in the first three months of the year, down 9% compared to the same period in 2024, excluding changes in exchange rates. Revenue was impacted by the market slowdown resulting from a more intense winter, which was partially mitigated by positive price dynamics. Adjusted EBITDA for the region was negative R$136 million in the period, compared to negative R$18 million in the first quarter of 2024, resulting primarily from harsher winter conditions, in addition to plant maintenance schedules.

In Europe, Asia and Africa, net revenue in 1Q25 was R$869 million, up 2% in local currency compared to 1Q24, due to better prices in Spain and Turkey. Adjusted EBITDA in the region was R$235 million in the period, an increase of 33% in local currency compared to the first quarter of 2024. The positive operating result was due to positive market dynamics in Spain and better margins in both countries. The completion of the sale of the company’s assets in Tunisia was announced in April. The sale of assets in Morocco continues to follow its regular course, awaiting the fulfillment of usual conditions precedent for this type of transaction.

In Latin America, net revenue increased 2% in local currency in the first quarter of 2025 compared to the same period in 2024, totalling R$234 million, as a result of higher sales volumes and prices in Bolivia. This growth in sales was also reflected in adjusted EBITDA of R$39 million in 1Q25, up 6% over 1Q24, excluding the effect of changes in exchange rates.

Read the article online at: https://www.worldcement.com/the-americas/14052025/votorantim-cimentos-announce-first-quarter-results/