Brazil: Votorantim Cimentos grew its revenue and earnings in 2024 but its net income dropped significantly due to interest rate volatility. It noted ‘positive performance’ in its Europe and Asia region and a stable market in Brazil. It attributed its mounting earnings to its balanced portfolio, revenue in Europe and Asia, operational efficiency, reduced costs and new business.
The group’s net revenue grew by 3% year-on-year to US$4.69bn in 2024 from US$4.53bn in 2023. However, revenue fell slightly in local currencies due to negative exchange effects, particularly in North America. Cement sales volumes rose by 1% to 35.4Mt from 34.9Mt. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 16% to US$1.14bn from US$0.99bn. Earnings rose in all regions except for Latin America due to a ‘challenging’ market in Uruguay and lower prices in Bolivia. Despite this, its adjusted net income dropped by 17% to US$383m from US$461m.
“We ended the year with record-high operating results, supported by our geographic, product and business diversification, in line with our strategic mandate,” said Osvaldo Ayres, the group’s global CEO. The company invested over US$550m in 2024 towards decarbonisation, competitiveness and new businesses. A further US$880m investment plan in Brazil to 2028 was announced in early 2024. Ongoing projects include upgrades supporting higher thermal substitution rates at the Xambioá plant in Tocantins state and the Salto de Pirapora plant in São Paulo. A new 1Mt/yr cement grinding unit is being built at the Salto de Pirapora site. Construction of this project is scheduled for completion in the second-half of 2025. A new 1Mt/yr cement grinding unit was also announced at the Edealina plant in Goiás. This project is expected to be completed in the first half of 2026.
Votorantim also revealed that it paid around US$190m to the Administrative Council for Economic Defense (CADE) at the end of 2024 in connection with an agreement to end all administrative and judicial litigation. It said “We definitively resolved all pending disputes with CADE. We did not acknowledge, at any time, having committed any unlawful act or engaged in any anticompetitive behaviour.”
