Votorantim Cimentos is a large cement manufacturer based in Brazil. As one of the largest cement producers in Latin America, Votorantim Cimentos generates significant revenue each year from its operations across multiple countries.
About Votorantim Cimentos
Votorantim Cimentos is part of the Votorantim Group, one of the largest industrial conglomerates in Latin America. The company was founded in 1933 and has grown to become one of the top cement producers globally. Some key facts about Votorantim Cimentos include:
- Headquartered in São Paulo, Brazil
- Operates cement plants and related facilities in 14 countries
- Over 10,000 employees worldwide
- Total annual cement production capacity of over 50 million tonnes
- Largest cement company in Brazil with around 30% market share
In addition to cement, Votorantim Cimentos also produces aggregates, mortar and ready-mix concrete. The company has a diversified business model across cement, concrete and aggregates, both in Brazil and internationally.
Revenue Sources
Votorantim Cimentos generates revenue from multiple sources related to its core cement and building materials businesses. The key revenue streams include:
Cement Sales
The majority of Votorantim’s revenue comes from sales of cement products. This includes bulk cement sold to concrete producers and distributors as well as bagged cement sold through retail outlets. Cement sales account for around 60-70% of total company revenue annually.
Concrete Sales
Votorantim produces ready-mix concrete at plants across Brazil and internationally. Concrete sales represent 15-20% of overall company revenue each year.
Aggregates Sales
Revenue from sales of aggregates such as crushed stone, sand and gravel contributes around 10% of total revenue.
Other Building Materials
A smaller portion of revenue is generated from complementary building materials such as lime and mortar. These products account for 5-10% of sales.
Recent Financial Performance
Here is an overview of Votorantim Cimentos’ recent financial performance:
| Year | Revenue (BRL billions) | Net Income (BRL billions) |
|---|---|---|
| 2018 | 19.0 | 1.1 |
| 2019 | 20.2 | 1.3 |
| 2020 | 21.6 | 1.5 |
As shown, Votorantim has experienced steady revenue growth over the past three years. In 2020, the company generated BRL 21.6 billion in total revenue and BRL 1.5 billion in net income.
Revenue Growth Drivers
Some of the key factors that have supported Votorantim’s revenue growth in recent years include:
- Expanding cement capacity in emerging markets
- Increased construction activity in Brazil
- Focus on premium cement products
- New concrete and aggregates facilities
- Vertical integration and cost controls
The company has benefitted from continued infrastructure investment and a rebound in the Brazilian construction sector. Meanwhile, expanding in faster-growing Latin American markets and capitalizing on operational efficiencies has boosted performance.
2021 Performance and 2022 Outlook
In 2021, Votorantim Cimentos reported total net revenue of BRL 29.6 billion. This reflected an impressive 38% increase over the BRL 21.6 billion in revenue generated in 2020. Net income also jumped to BRL 2.9 billion in 2021, nearly double the prior year. These strong results were attributed to solid cement demand in Brazil and South America along with higher prices. Infrastructure investments and the recovery in the construction market provided tailwinds that boosted sales volumes and pricing power.
Heading into 2022, Votorantim Cimentos appears well-positioned to continue leveraging favorable industry trends to drive revenue higher. The company is guiding for high-single digit growth in cement consumption in Brazil this year. Additional infrastructure projects, expanded housing activity and a rebound in industrial construction are expected to support cement sales. Furthermore, Votorantim is focused on ramping up newly expanded cement capacity across operations in South America. Higher production volumes will enable the company to boost revenue growth in 2022 and beyond. With a leading market share and efficient operations, Votorantim Cimentos looks poised to deliver another year of healthy top and bottom line expansion.
Industry Position
As the largest cement company in Brazil, Votorantim Cimentos holds a dominant position in the domestic market. The company accounts for around 30% of total cement sales volume in Brazil. This leading market share provides significant advantages, including economies of scale, bargaining power with suppliers, and the ability to drive pricing. Beyond Brazil, Votorantim is focused on increasing its presence in high-growth Latin American countries like Argentina, Bolivia and Uruguay. The company is now the 4th largest cement producer in Latin America.
Some figures that highlight Votorantim Cimentos’ strong competitive position include:
- Approximately 30% market share in its home market of Brazil
- Over 50 million tonnes of annual cement production capacity
- Cement plants in 14 countries across South America
- Largest cement company in Argentina and Bolivia
With its extensive production footprint across fast-growing markets, coupled with decades of local experience, Votorantim is strongly positioned to capitalize on cement demand across the region going forward.
Competitive Landscape
The main competitors of Votorantim Cimentos in the South American cement industry include:
Cemex
Mexico-based Cemex is one of the top five cement companies worldwide. It has significant operations across South America including Colombia, Panama, Dominican Republic and Brazil. Cemex has around 15% of the Brazilian cement market, making it Votorantim’s closest competitor domestically.
Holcim
Swiss multinational company Holcim is another leading global cement maker with a strong presence in Latin America. Holcim is the third biggest player in Brazil with an approximately 10% cement market share.
InterCement
Brazilian company InterCement has cement operations in eight countries globally. While smaller than Votorantim, it still accounts for around 10% of domestic cement sales in Brazil.
Cementos Argos
Colombia’s biggest cement producer Cementos Argos has expanded into markets like Brazil. However, with less than a 5% market share, it trails as a lower-tier player.
While international cement giants remain key rivals, Votorantim’s extensive local operations and capacity still give it the edge in terms of overall market share and leadership in South America’s major markets like Brazil.
Conclusion
In summary, Votorantim Cimentos is a cement industry powerhouse in South America. As the largest cement company based in Brazil, it generates over BRL 20 billion in annual revenues from its integrated operations across cement, concrete and aggregates. Core business segments all contribute to Votorantim’s top line, with cement sales making up the majority of revenue. Recent years have seen continuous growth as infrastructure investment and recovering construction activity spur cement demand. With its strong presence across high-potential markets, decades of experience, and efficient operations, Votorantim Cimentos is positioned to continue delivering solid revenue and profitability going forward. Although international competitors remain, Votorantim’s market leadership, especially in Brazil, provides advantages in terms of scale, costs, and pricing power.
