Brazilian industrial holding Votorantim saw adjusted EBITDA in Q1 this year decline 27 percent, year-on-year, at its long steel segment, the company said late this week.
Votorantim said adjusted EBITDA at its long steel segment, which is comprised of Acerbrag in Argentina and Acerias Paz del Rio in Colombia, reached BRL 62 million ($11.1 million), down from BRL 85 million ($15.2 million) in the same quarter of the year prior. Votorantim said its long steel business posted an operating income of BRL 8 million ($1.4 million), 70 percent down, year-on-year.
Net revenues in Q1 totaled BRL 421 million ($75.4 million), 3 percent down, year-on-year. The weaker net revenues were due to the depreciation of the Argentinian peso (ARS) over the Brazilian Real (BRL). EBITDA margin in Q1 reached 15 percent, down from 20 percent in Q1 2019.
Without disclosing specific figures, Votorantim said revenues at its long steel mill Acerbrag in Argentina in Q1 fell 10 percent, year-on-year, due to a weaker ARS currency, when compared to the BRL.
On the other hand, revenues at its Colombian business, Acerias Paz del Rio, in Q1 rose 4 percent, year-on-year, thanks to higher steel sales volumes and higher steel selling prices.