Votorantim, One of Brazil’s Largest Diversified Holdings, Reports 50% Growth in Company Profits During the First Quarter of the Year

Votorantim’s Net Profit Reached R$ 1.7 Billion, According to Balance Sheet Published by the Company on the 17th

Votorantim S.A. – a Brazilian multinational focused on investments in the mining, cement, aluminum, energy, finance, among others – achieved a 50% increase in net profit recorded by the company in the first quarter of this year, compared to the same period in 2021. In total, the corresponding profit amount is R$ 1.7 billion, as reported in the balance sheet released by the company, which is privately held, this Tuesday (the 17th).
In addition, Votorantim’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was R$ 2.2 billion. The company’s net revenue, in turn, recorded a 19% increase in one year, reaching R$ 11.7 billion, due to the rise in prices of the products sold by the invested companies and also because of the larger quantities sold.
Included in Votorantim’s portfolio are companies like CBA, which in April completed a subsequent share offering (follow on) of R$ 940 million, selling shares held by the multinational.
Moreover, Votorantim also invests in Auren Energia, a company that received the assets from the former Cesp.

Votorantim’s CEO Expresses Satisfaction with the Company’s Results and Profits

According to João Schmidt, CEO of Votorantim, even in a context of high market volatility, the first three months of this year were marked by good profits and progress in portfolio improvement initiatives. He stated that the company remains focused on achieving its long-term goals and is prepared to face the challenges presented this year.
In portfolio management, Votorantim applied to purchase, in partnership with Itaúsa (ITSA4), a 14.9% stake in CCR (CCRO3). Considering the proposal, Votorantim will invest R$ 1.3 billion, ultimately acquiring about 10.3% of the infrastructure company. Currently, the multinational already holds 5.8% of the capital.
The company also emphasizes the development of its ESG agenda, with the publication of annual reports and the exposition of its renewable energy thesis. Votorantim also highlights that CBA was validated as the only aluminum company on the planet with carbon emissions reduction targets approved by Science Based Targets.

Large Brazilian Aluminum Company Stands Out in the Economic Scenario of the First Quarter of 2022

Despite the unfavorable economic environment we are facing, Companhia Brasileira de Alumínio (CBAV3), part of the Votorantim group, stood out in the market, reporting a profit of R$ 426 million in these first three months of the year. This achievement is even more significant when we see that the same company had an estimated loss of R$ 133 million during the same period last year.
However, now, net revenue has reached R$ 2.3 billion, representing exponential growth compared to the same period last year, at 31%. Additionally, EBITDA (a measure of earnings before interest, taxes, depreciation, and amortization) showed a 53% increase in the first three months of 2022, totaling R$ 552 million.
The growth does not stop there. Aluminum prices reached US$ 3,280/t, representing a 56% higher share compared to the same period last year. Even with a 9% decline (109,000 tons) in sales volume, the company still managed to record a 32% increase in net revenue.
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