Votorantim Cimentos ended the third quarter of 2022 with consolidated net revenue of R$7.6 billion, an increase of 19% compared to the same period last year.
The company said the result is primarily due to favorable price dynamics in all regions, which offset the slight drop in volume and the negative effect of the appreciation of the Brazilian real against the euro on the consolidation of the results of operations abroad.
“We improved our operating result, despite a still-challenging macroeconomic situation. Cost inflation – mainly of fuel, freight, energy and inputs – is still present in all countries where Votorantim Cimentos operates. We remain resilient and aligned with our strategy, focused on operational excellence and the competitiveness of our operations,” said Osvaldo Ayres Filho, COO of Votorantim Cimentos.
The company’s global cement sales totaled 10.2 million tonnes in the third quarter, with a slight drop of 1% compared to the 10.4 million tonnes sold in the prior-year period. Net income in the quarter was R$604 million, a 44% decrease compared to the same period last year. The third-quarter results were primarily due to higher net financial expenses and income tax.
In Brazil, Votorantim Cimentos’ third-quarter net revenue was R$3.7 billion, an increase of 25% compared to the prior-year period. The dynamics of price increases offset the lower sales volume in the period. Infrastructure and real estate projects offset the slowdown in the self-construction sector, balancing the reduction in cement demand in the Brazilian market.
In North America, the company’s third-quarter net revenue was R$2.5 billion, an increase of 9% compared to the prior-year period that was mainly driven by solid market demand after a more severe winter in 2022 and also favorable price dynamics in Canada and the United States.
In Latin America, the company’s third-quarter net revenue was R$214 million, down 16% from the third quarter of 2021. Adjusted EBITDA was R$39 million, down 37%. The results were mainly due to more challenging dynamics in the Bolivia and Uruguay markets.