In This Article:
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Revenue: MXN1.89 billion, a 2.7% growth compared to Q2 2023.
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Housing Revenue: MXN1.80 billion, 95.5% of total revenue.
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Average Home Price: MXN1,196,200, 2% above Q2 2023.
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Operating Income: MXN209.2 million with a margin of 11.1%.
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Net Income: MXN186.2 million with a margin of 9.9%.
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EBITDA: MXN288.9 million with a margin of 15.3%.
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Free Cash Flow: MXN375.3 million.
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Cash and Cash Equivalents: MXN2.29 billion as of June 30, 2024.
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Accounts Receivable: MXN785.4 million, 8.8% higher than December 31, 2023.
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Total Inventories: MXN17.5 billion, a 4.6% increase over the previous year.
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Cost-Bearing Debt: MXN2.4 billion, a 2.4% decline from December 31, 2023.
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Net Debt: Positive by MXN108.7 million.
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Interest Coverage Ratio: 3.15 times.
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Shopping Center Revenue: MXN118.3 million, a 10.6% growth over Q2 2023.
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Shopping Center Occupancy Rate: 95.5% as of June 30, 2024.
Release Date: July 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Consorcio Ara SAB de CV (CNRFF) reported a 2.7% growth in revenues for the second quarter of 2024 compared to the same period in 2023, totaling MXN1.89 billion.
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The company generated positive free cash flow of MXN375.3 million in the second quarter of 2024, maintaining cash and cash equivalents balance unchanged from the close of 2023.
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Affordable entry-level homes saw a significant revenue growth of 14.7% in the second quarter of 2024 compared to the same period in 2023.
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The shopping center division performed well, with revenues growing by 10.6% in the second quarter of 2024 compared to the same period in 2023.
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Consorcio Ara SAB de CV (CNRFF) maintained a strong financial position with a stable cash and cash equivalents balance of MXN2.29 billion as of June 30, 2024.
Negative Points
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Residential revenues decreased by 26.2% in the second quarter of 2024 compared to the same period in 2023, primarily due to lower revenues from developments in Acapulco affected by Hurricane Otis.
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The average price of homes sold in the first half of 2024 was 1.8% lower compared to the same period in 2023.
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Accounts receivable increased by 8.8% as of June 30, 2024, compared to December 31, 2023.
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The net debt to EBITDA ratio, although low, was positive at MXN108.7 million at the close of the second quarter of 2024.
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The residential project Dream Diamante in Acapulco is expected to fully recover only by 2025, indicating a slower recovery pace.
Q & A Highlights
Q: When do you expect Acapulco's housing development to recover to pre-Hurricane Otis levels, and what will drive future revenue growth? A: Acapulco is recovering well, with affordable and middle-income projects expected to reach pre-hurricane sales levels by this quarter. The residential project, Dream Diamante, is at 50% of previous sales and should fully recover by 2025. Future revenue growth will be driven by a mix of increased unit sales and higher average prices.