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Our 2024 financial results

March 19, 2025, 02:05 PM
  • Our consolidated global net revenue in the year was R$26.6 billion, on par with 2023, excluding the effects of changes in foreign exchange rates. 
  • Our consolidated adjusted EBITDA was R$6.5 billion, a record high for the second consecutive year and up 9% compared to 2023, excluding changes in foreign exchange rates. 
  • Our EBITDA margin was 24%, 2 percentage points higher than in 2023. 
  • Our investments (Capex) totaled R$3.2 billion, an increase of 38% compared to the previous year, in line with our global modernization, competitiveness and decarbonization strategy. 
  • Our global cement sales totaled 35.4 million tonnes, up 1% compared to 2023. 
  • Fitch Ratings upgraded our global credit rating to “BBB”, two levels above investment grade, reaffirming our financial solidity. 
  • At the end of 2024, we reached an agreement with the Administrative Council for Economic Defense (CADE, in Portuguese) to end all administrative and judicial litigation involving our company and the federal antitrust agency, according to the rules of the “Desenrola Agências Reguladoras” program. 

We ended 2024 with another record high in annual operating results and margin growth, supported by our geographic and product diversification. Our global net revenue in the year totaled R$26.6 billion, on par with 2023, excluding changes in foreign exchange rates, primarily as result of the positive performance in European and Asian countries and stability in Brazil. Cement sales volume in 2024 totaled 35.4 million tonnes, up 1% compared to the previous year.  

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$6.5 billion, a record high for the second consecutive year and up 9% compared to 2023, in local currency. The improvement in operating results can be attributed to our balanced portfolio (especially in our operations in Europe and Asia), operational efficiency combined with lower variable costs in most regions, and the positive impact of new businesses, in addition to gains resulting from the sale of non-strategic assets in North America and Uruguay. The EBITDA margin in the year was 24%, 2 percentage points higher than 2023. 

Last year, our investments (Capex) totaled R$3.2 billion, up 38% compared to 2023. This increase is in line with our global strategy of investments in decarbonization, competitiveness and new businesses. Regarding the R$5 billion investment plan announced in early 2024 to strengthen our operations in Brazil, R$1.9 billion is already being executed, including a comprehensive program of structural growth and competitiveness through 2028. 

This investment plan includes a project to modernize the kiln and biomass system at the Xambioá plant (Tocantins state, in Brazil) to increase the site’s co-processing rate. Similarly, last year, the first phase of a modernization project in the Salto de Pirapora plant (São Paulo state, in Brazil) was completed, leading to a marginal increase in clinker production capacity as the site seeks to accelerate thermal substitution and reduce CO2 emissions. A new cement grinding plant is also being built at the Salto de Pirapora plant, which will add 1 million tonnes/year to the site’s production capacity. Construction is expected to be completed in the second half of 2025. 

In 2024, expansion projects in Brazil included the start of operations at a new site in Itaperuçu (Paraná state, in Brazil), increasing the capacity related to new businesses, such as Viter (agricultural solutions) and Verdera (waste management and co-processing). In addition, we announced last year the expansion of the Edealina (Goiás state, in Brazil) site, a R$200 million investment in the construction of a new cement grinding line that will double the plant’s production capacity, to 2 million tonnes of cement per year. The project is expected to be completed in the first half of 2026. 

“We ended the year with record-high operating results, supported by our geographic, product and business diversification, in line with our strategic mandate. We continued to advance our program of modernization, competitiveness and acceleration of new businesses, as well as the implementation of our decarbonization and sustainability strategy, aligned with our 2030 public commitments,” said Osvaldo Ayres, our global CEO. 

We ended 2024 with leverage (measured by the net debt/adjusted EBITDA ratio) of 1.66x, an increase of 0.29x compared to 2023, considering only continuing operations. The increase resulted from changes in foreign exchange rates and the payment made to CADE at the end of December 2024, related to the agreement to close all administrative and judicial litigation involving our company and the agency, partially mitigated by the improved operating results. 

The rating agency Fitch Ratings upgraded our global credit rating from “BBB-” to “BBB”, with a stable outlook. In addition, Moody’s and S&P Ratings reaffirmed our “Baa3” and “BBB” global credit rating, respectively, with a stable outlook. With that, we maintain our investment grade credit rating. 

“Votorantim Cimentos ended the year with financial strength, low leverage and strong liquidity, supported by improvements in credit ratings and debt opportunities with issuances at the lowest historical spread levels. We ended 2024 with a cash balance and financial investments of R$5.2 billion. This amount will allow the company to meet its financial obligations for the next four years,” said Antonio Pelicano, our Global CFO. 

We posted adjusted net profit of R$2.2 billion in 2024, 17% lower than in the previous year due to financial expenses, including the early settlement of a bond originally due in 2027. 

At the end of 2024, we paid R$1.1 billion to the Administrative Council for Economic Defense (CADE, in Portuguese) in connection with an agreement to end all administrative and judicial litigation involving our company and the Brazilian antitrust agency, in accordance with the rules of the “Desenrola Agências Reguladoras” program. Through this program, the Brazilian federal government offered individuals and companies with pending disputes with public agencies and foundations the opportunity to resolve their issues under mutually beneficial, consensus-based conditions. As a result of this extraordinary transaction and the agreement, 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 behavior. 

In line with our decarbonization plan, we continued to advance projects to expand our capacity to use alternative fuels from biomass and waste globally. In Spain, we started a carbon capture pilot project at its Alconera plant, capturing 1 tonne of CO2 per day. This initiative is one of our first carbon capture experiments in Spain and aims to improve our knowledge about carbon capture technologies, representing a significant step in our decarbonization journey. We have also extended our carbon capture experience to North America and are working on a pilot project using membrane-based capture technology at our Charlevoix plant (Canada). Since 1990, the baseline year for historical measurements, we have reduced our CO2 emissions by 28%. 

  

Performance by Region 

In Brazil, our 2024 net revenue was R$12.9 billion, on par with 2023, with higher sales volume, which was offset by price dynamics. Our adjusted EBITDA in the country totaled R$2.6 billion, up 4% compared to 2023. The lower variable costs, higher sales volume and progress in new businesses contributed to this result. 

In North America, net revenue totaled R$8.2 billion in 2024, down 4% compared to 2023, excluding changes in foreign exchange rates. This resulted from the market slowdown, which mitigated the favorable price dynamics in the period. Adjusted EBITDA for the region was R$2.3 billion in 2024, up 6% over 2023 in local currency, as a result of operational efficiency and the sale of non-strategic local assets, leading to a significant recovery in margins. 

In Europe and Asia, net revenue grew 10% in 2024 compared to 2023, totaling R$3.9 billion, excluding changes in foreign exchange rates. The positive performance resulted from an increase in sales volume and price dynamics, both in Spain and Turkey. Adjusted EBITDA for the region was R$1.1 billion, a 32% increase compared to 2023, in local currency. The positive operating result was due to the previously mentioned market dynamics and the reduction of variable costs, mainly fuel and electricity. We also concluded an important cycle of capturing synergies from the assets acquired in recent years in Southern Spain. In 2024, we signed agreements for the sale of our assets located in Tunisia and Morocco. The conclusion of these transactions is subject to the fulfillment of conditions precedent, including approval by regulatory authorities. Reflecting the reclassification of Tunisia and Morocco as discontinued operations, due to the sale of these assets in 2024, the consolidated information does not consider the results of these two countries. 

In Latin America, net revenue was R$903 million in 2024, down 2% compared to 2023, in local currency, as a result of challenging market dynamics in both Uruguay and Bolivia. The region ended 2024 with R$158 million in adjusted EBITDA, 10% lower than 2023, excluding the effects of changes in foreign exchange rates. The result was impacted by market conditions and higher variable costs, which were partially mitigated by the sale of a non-strategic asset in Uruguay.