Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Helbor Empreendimentos SA (BSP:HBOR3, Financial) achieved consolidated sales of BRL532,087 million in Q2 2024, marking the best sales semester since the cancellation crisis.
- The company launched four projects in Q2 2024, representing a total net PSV of BRL267 million.
- Helbor Empreendimentos SA (BSP:HBOR3) delivered three projects in Q2 2024, with an average sales rate of 84% in São Paulo and 57% in Mogi das Cruzes.
- Year-to-date revenue reached BRL618 million with a gross margin of 32.4%.
- The company has a diverse land bank with a potential of BRL10.8 million or BRL7 billion in available shares, primarily in premium neighborhoods of São Paulo.
Negative Points
- The leverage index increased to 71.2%, indicating higher financial risk.
- Net profit for the parent company was BRL15.5 million, representing only 0.12 in earnings per share.
- General and administrative expenses increased, impacting net margins.
- Total debt for Q2 2024 was slightly higher by BRL4 million compared to the previous quarter.
- The backlog revenue and margin declined, with the backlog margin reducing from 26.8% in Q1 to 25.4% in Q2 2024.
Q & A Highlights
Q: I would like to understand more about the cash during this quarter. We have some expenses that can persist. Can you explain the gross and net margin discrepancy?
A: The cash burn is due to ongoing construction work, land payments, and dividend payouts. The gross margin discrepancy arises from a mix of high-margin new sales and lower-margin inventory sales.
Q: What is the expectation of launches in the third and fourth quarters?
A: We expect to launch three to four projects in the second half, including the second phase of Vila Mariana and other developments in São Paulo. Some projects are being adjusted for better planning.
Q: Can you elaborate on the leverage and debt situation?
A: Our leverage increased slightly due to strategic land acquisitions and ongoing construction expenses. We are focused on deleveraging by selling non-strategic land and reducing inventory.
Q: How is the inventory situation and its impact on financials?
A: Our inventory has been decreasing, with 97% located in Southeast Brazil. We have a diverse inventory mix, and the majority is under construction, which helps maintain a healthy sales pipeline.
Q: What are the key financial highlights for this quarter?
A: We achieved a net operating revenue of BRL322 million, a gross margin of 32.2%, and a net margin of 9.8%. Our total debt increased slightly, but we are managing it through strategic sales and operational efficiency.
Q: How are the sales and project deliveries progressing?
A: We closed the quarter with consolidated sales of BRL532 million, marking a 45% increase year-over-year. We delivered three projects this quarter, achieving high sales rates in São Paulo and Mogi das Cruzes.
Q: What is the status of the land bank and future development plans?
A: We have a land bank with a potential of BRL10.8 billion, primarily in premium neighborhoods of São Paulo. We are focusing on high-quality projects and strategic land acquisitions to support future growth.
Q: Can you provide more details on the operational focus for the rest of the year?
A: We are committed to reducing inventory, improving operational and financial indicators, and focusing on scheduled project deliveries. Our goal is to maintain strong sales performance and achieve further deleveraging.
Q: How is the company handling market conditions and competition?
A: Despite market challenges, we have achieved strong sales and maintained a healthy inventory mix. Our strategic focus on premium locations and high-quality projects positions us well against competitors.
Q: What are the expectations for the Helbor Day event and its impact on sales?
A: The Helbor Day event has been successful in driving sales. We plan to hold another event this year, which we expect to further boost our sales performance and strengthen our market presence.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
