OPERATING PREVIEW | 1Q23 |
Belo Horizonte, April 10th, 2023 - Direcional Engenharia S/A, one of the largest homebuilders and real estate development companies in Brazil, focused on the development of low-income and medium-income projects and operating in several regions of the Brazilian territory, discloses here its operating statements for the first quarter of 2023 (1Q23). Unless otherwise stated, the information in this document is expressed in national currency (Brazilian Reais - R$ or BRL) and the Potential Sales Value ("PSV") demonstrates the consolidated amount (PSV 100%).
NOTICE TO THE MARKET
1Q23 OPERATING PREVIEW
BEST 1ST QUARTER IN NET SALES IN COMPANY'S HISTORY: BRL 803 MILLION, A 29% GROWTH VERSUS 1Q22 AND A 16% GROWTH VERSUS 4Q22
HIGHLIGHTS
- In the last 12 months ending in 1Q23 (1Q23 LTM), Launches totaled BRL 3.6 billion, a 15%growth in relation to 1Q22 LTM.
- Net Sales of BRL 3.2 billionin 1Q23 LTM, an amount 25%higher than in 1Q22 LTM.
- Net Sales Speed ratio (VSO) of 17%in the quarter in the consolidated view.
- VSO of Direcional segment reached 19%in 1Q23.
- Net Sales in Riva segment totaled BRL 234 millionin 1Q23, a 37%growth over 1Q22 and a 13%growth over 4Q22.
- Cash Generation of BRL 8 millionin 1Q23.
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OPERATING PREVIEW | 1Q23 |
LAUNCHES
In the first quarter of 2023 (1Q23), Group Direcional launched 9 new products, totaling a PSV of BRL 611 million (BRL 611 million
- Company), up by 2% versus the volume launched in 1Q22. Thus, the Group had its best 1st quarter in history in terms of Launches.
It is worth mentioning that the products under Direcional brand accounted for 78% of total PSV launched, and the products under Riva brand accounted for 22% of the mix in 1Q23.
Considering the 12-month period ending in March, 2023 (1Q23 LTM), Launches totaled BRL 3.6 billion (BRL 3.2 billion % Company), a 15% growth over 1Q22 LTM.
Quarterly Launches | Last 12 months Launches | ||
(PSV 100% - BRL million) | (PSV 100% - BRL million) | ||
+2% | +15% | ||
599 | 611 | 3,160 | 3,648 |
134 | |||
203 | 1,332 | ||
1,369 | |||
396 | 477 | 2,316 | |
1,791 | |||
1Q22 | 1Q23 | 1Q22 LTM | 1Q23 LTM |
Riva | Direcional |
Table below presents further information on 1Q23 Launches:
Launches | 1Q23 | ||||
(a) | |||||
PSV Launched - 100% (BRL million) | 611.2 | ||||
Direcional | 477.2 | ||||
Riva | 134.0 | ||||
PSV Launched - % Company (BRL million) | 611.2 | ||||
Direcional | 477.2 | ||||
Riva | 134.0 | ||||
Launched Units | 2.762 | ||||
Direcional | 2.476 | ||||
Riva | 286 | ||||
Average % Company | 100.0% |
4Q22
(b)
1.057.7
709.8
347.9
896.1
651.3
244.8
4.320
3.504
816
84.7%
1Q22
(c)
599.1
396.4
202.6
557.3
354.7
202.6
2.831
2.136
695
93.0%
Δ % | Δ % |
(a/b) | (a/c) |
-42.2% | 2.0% |
-32.8% | 20.4% |
-61.5% | -33.9% |
-31.8% | 9.7% |
-26.7% | 34.6% |
-45.3% | -33.9% |
-36.1% | -2.4% |
-29.3% | 15.9% |
-65.0% | -58.8% |
15 p.p. | 7 p.p. |
2
OPERATING PREVIEW | 1Q23 |
NET SALES
In line with what had been observed in the final weeks of 4Q22 - when there was a significant increase in the sales volume, after the presidential elections and the World Cup -, Net Sales remained at a strong pace in 1Q23, totaling BRL 803 million (BRL 643 million % Company). When compared to the previous quarter, the growth rate reached 16%, and when compared to the year- ago period, there was a 29% growth. Thus, Direcional also recorded its best performance for a 1st quarter in terms of Net Sales.
Taking into account 1Q23 LTM, Net Sales came in at BRL 3.2 billion (BRL 2.6 billion % Company), which represented a 25% increase in relation to 1Q22 LTM, with growth in both Direcional and Riva products.
Net Sales | 1st Quarter Track Record | |||||||||||||
(PSV 100% - BRL million) | (PSV 100% - BRL million) | |||||||||||||
Old Harvest | +25% | |||||||||||||
Riva | 3,180 | 803 | ||||||||||||
Direcional | ||||||||||||||
2,547 | 1,002 | 622 | ||||||||||||
14 | ||||||||||||||
825 | 515 | |||||||||||||
+29% | 2,180 | 250 | 287 | 298 | ||||||||||
803 | ||||||||||||||
622 | 694 | 1,708 | ||||||||||||
+16% | 151 | |||||||||||||
234 | 125 | |||||||||||||
171 | 3 | 207 | ||||||||||||
570 | ||||||||||||||
448 | 489 | |||||||||||||
-2 | -1 | -2 | 1Q16 | 1Q17 | 1Q18 | 1Q19 | 1Q20 | 1Q21 | 1Q22 | 1Q23 | ||||
1Q22 | 4Q22 | 1Q23 | 1Q22 | 1Q23 | ||||||||||
LQM | LQM |
The table below shows the breakdown of 1Q23 Net Sales:
Net Sales
Net Sales - PSV 100% (BRL million)
Direcional
Riva
Old Harvest1
Net Sales - PSV % Company (BRL million)
Direcional
Riva
Old Harvest
Contracted Units
Direcional
Riva
Old Harvest
Net Sales Speed (VSO) in PSV
Direcional
Riva
Old Harvest
1Q23 | 4Q22 | 1Q22 | Δ % | Δ % |
(a) | (b) | (c) | (a/b) | (a/c) |
803.4 | 694.4 | 621.9 | 15.7% | 29.2% |
570.2 | 489.3 | 447.9 | 16.5% | 27.3% |
234.0 | 206.7 | 171.2 | 13.2% | 36.7% |
-0.8 | -1.6 | 2.8 | -49.4% | -129.4% |
642.9 | 551.5 | 508.0 | 16.6% | 26.6% |
463.2 | 397.6 | 372.0 | 16.5% | 24.5% |
180.0 | 153.9 | 134.6 | 17.0% | 33.8% |
-0.4 | 0.0 | 1.5 | 7532.6% | -125.6% |
3.246 | 2.899 | 2.945 | 12.0% | 10.2% |
2.532 | 2.315 | 2.347 | 9.4% | 7.9% |
716 | 586 | 592 | 22.2% | 20.9% |
-2 | -2 | 6 | 0.0% | -133.3% |
17% | 15% | 16% | 2 p.p. | 1 p.p. |
19% | 17% | 18% | 2 p.p. | 1 p.p. |
13% | 12% | 14% | 2 p.p. | -1 p.p. |
-3% | -4% | 3% | 1 p.p. | -6 p.p. |
1 - Old Harvest: Comprises projects of the middle income, upper-middle income and commercial segments, developed in the former model.
3
OPERATING PREVIEW | 1Q23 |
NET SALES SPEED (VSO)
Considering the aforementioned sales performance, 1Q23 Net Sales Speed, measured by the VSO index (Net Sales over Supply ratio), reached 17% in the consolidated view, a 2 p.p. increase in relation to the previous quarter. The index breakdown shows the VSO of Direcional projects (excluding Old Harvest projects) reached 19% in the quarter, while Riva´s VSO came in at 13%. It is worth mentioning that the index was impacted by the fact that Riva's only launch in the quarter took place in the last two weeks of March.
Net Sales and VSO | ||||||
(PSV 100% - BRL million) | ||||||
23% | 19% | |||||
20% | 19% | |||||
18% | 19% | |||||
17% | ||||||
19% | 17% | |||||
16% | 17% | |||||
15% | 13% | |||||
14% | ||||||
12% | ||||||
836 | 847 | 803 | ||||
1 | Old Harvest Sales | |||||
694 | ||||||
622 | 236 | |||||
326 | 234 | Riva Sales | ||||
3 | 207 | |||||
171 | Direcional Sales | |||||
448 | 601 | 520 | 489 | 570 | Direcional VSO | |
Consolidated VSO | ||||||
0 | -2 | -1 | Riva VSO | |||
1Q22 | 2Q22 | 3Q22 | 4Q22 | 1Q23 |
INVENTORY
At the end of 1Q23, Company's Inventory had 15,224 units, accounting for a PSV of BRL 4.0 billion (BRL 3.4 billion % Company).
Table below shows the Inventory at market value, detailed by stage of construction and by the type of product. It is worth mentioning that about 2% of the total PSV refers to completed units, with 1% related to Direcional projects (ex-OldHarvest products).
Total PSV | % Company PSV |
Breakdown of Inventory at Market Value
In progress (BRL million)
% Total
Completed (BRL million)
Direcional | Riva | Old Harvest | Total |
2,451 | 1,516 | 0 | 3,967 |
61% | 37% | 0% | 98% |
34 | 2 | 40 | 76 |
Direcional
2,121
62%
33
Riva | Old Harvest | Total |
1,257 | 0 | 3,378 |
37% | 0% | 98% |
2 | 25 | 59 |
% Total | 1% | 0% | 1% | 2% | 1% | 0% | 1% | 2% | |||
Total (BRL million) | 2,485 | 1,518 | 40 | 4,043 | 2,154 | 1,259 | 25 | 3,437 | |||
% Total | 61% | 38% | 1% | 100% | 63% | 37% | 1% | 100% | |||
Total Units | 11,037 | 4,070 | 117 | 15,224 | 11,037 | 4,070 | 117 | 15,224 | |||
% Total Units | 72% | 27% | 1% | 100% | 72% | 27% | 1% | 100% |
4
OPERATING PREVIEW | 1Q23 |
LANDBANK
At the end of 1Q23, Direcional landbank totaled a development potential of 169,819 units with a PSV of BRL 32.5 billion (BRL 29.8 billion % Company).
The average cost of acquisition was equivalent to 11% of the PSV, and 81% of the payment shall be made through swaps, which causes a reduced impact on the Company's cash position before the beginning of the development of the projects
Landbank Evolution | 2022 | 1Q23 | 1Q23 | |
(BRL million) | Landbank | Acquisition | Launches | |
Total PSV | 32,459 | 633 | (611) |
1 - Adjustments: update of sales price; canceled sales and swaps.
Adjustments 1
25
1Q23
Landbank
32,505
1Q23
PSV % Co.
29,759
Units
169,819
Land Acquisition
During 1Q23, 5 plots of lands were acquired, with a construction potential of more than 2,000 units and a PSV of BRL 633 million (BRL 574 million % Company).
The average cost of acquisition in the quarter was equivalent to 14% of PSV, and 74% of the payment shall be made via swaps.
CASH GENERATION ¹
In the first quarter of 2023, there was a Cash Generation of BRL 8 million. Thus, considering the 12-month period ending in 1Q23, the Cash Generation totaled BRL 120 million.
Cash Generation by Quarter | Cash Generation by Year |
(BRL million) | (BRL million) |
98 | 362 | |||||||||||
167 | 146 | 78 | 120 | |||||||||
53 | 38 | |||||||||||
20 | ||||||||||||
8 | -71 | -17 | ||||||||||
-6 | ||||||||||||
2Q22 | 3Q22 | 4Q22 | 1Q23 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 1Q23 |
LTM |
1 - Cash Generation: variation in net debt adjusted by payment of dividends, repurchase of shares and the variation in the balance of interest swap operation agreements Prior unaudited information.
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Direcional Engenharia SA published this content on 10 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 April 2023 23:26:02 UTC.