In a quarter most Brazilian steelmakers didn’t perform well, Votorantim Siderurgia, the long steel branch of Brazil’s conglomerate Votorantim Industrial, saw its revenue and adjusted EBITDA increase in Q3.
According to the company, net revenues in Q3 rose 10 percent, year-on-year, to BRL 1.1 billion, due to higher prices in Colombia and Argentina, and thanks to the depreciation of the Argentinian peso against (ARS) the US dollar (USD), the company said.
Votorantim Siderurgia said adjust EBITDA in Q3 increased 65 percent, year-on-year, to BRL 152 million, while EBITDA margin improved to 13.4 percent in Q3, from 9 percent in the year prior.
The long steel producer said cost of goods sold in Q3 rose 8 percent, year-on-year, to BRL 893 million, due to higher electric-energy related costs in Brazil and Colombia, which were also “coupled with increased payroll costs in Argentina, reflecting the high inflation in the country.”
On the other hand, Votorantim Industrial reverted a net profit and posted a BRL 81 million net loss in Q3, despite seeing its revenue increase 14 percent, year-on-year, to BRL 8.4 billion.
According to the holding company, adjusted EBITDA in Q3 declined 32 percent, year-on-year, to BRL 1.6 billion, while EBITDA margin diminished to 19.4 percent in the same period, from 32.6 percent in the year prior.