By Carolina Mandl
By Carolina Mandl
SAO PAULO, March 25 (Reuters) – Votorantim SA, one among Brazil’s largest diversified holding corporations, stated on Thursday it’s searching for to protect money after coronavirus-related lockdowns partially halted operations in Peru and Argentina and as cement gross sales have slowed.
“Everybody’s compass is disoriented proper now due to the pandemic,” Chief Monetary Officer Sergio Malacrida stated in an interview. “So liquidity is a precedence.”
Nonetheless, he stated the group has determined to not but draw down $1 billion from three revolving credit score traces as a result of he considers its 10 billion-real ($1.99 billion) money place – equal to 1 third of the group’s 2019 income – to be applicable up to now.
Relying on how lengthy coronavirus-related lockdowns final in nations the place it operates, Votorantim might find yourself utilizing the credit score traces, he added. At the moment, the Peruvian operations of its listed mining arm Nexa Sources NEXA.N and Votorantim’s metal unit in Argentina are partially halted due to shelter-in-place orders.
In Brazil, Malacrida stated all its companies, which incorporates cement, orange juice, energy era and a financial institution, are nonetheless working, however the coronavirus outbreak has already worn out earlier expectations of gross sales progress this yr at Votorantim Cimentos.
Votorantim can also implement a value discount to maintain its money place excessive, he added. Earlier this week, the corporate stated it could declare power majeure in vitality contracts, search a discount within the vitality it is required to purchase.
Malacrida avoided offering an outlook for 2020, saying any restoration would rely upon the period of lockdowns.
Votorantim’s internet revenue final yr greater than doubled to 4.9 billion reais, primarily helped by the sale of its stake in Fibria Celulose SA to Suzano Papel e Celulose SA.
Revenues remained secure at 30.9 billion reais final yr, as increased gross sales in cement had been offset by decrease metallic costs.
Earnings earlier than curiosity, taxes, depreciation and amortization – a gauge of operational revenue referred to as EBITDA – fell 26% to five.1 billion reais.
Votorantim ended December with internet debt of 1.95 times its EBITDA, roughly in keeping with the tip of 2018.
($1 = 5.0354 reais)
(Reporting by Carolina Mandl; Enhancing by David Gregorio)
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