In This Article:
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Net Revenue: BRL2 billion in 3Q '24, 25% higher year-on-year and 9% higher quarter-on-quarter.
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Gross Margin: 33.3% in 3Q '24, compared to 33.5% in 3Q '23 and 32.9% in 2Q '24.
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Net Income: BRL473 million in 3Q '24, compared to BRL251 million in 3Q '23 and BRL412 million in 2Q '24.
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Net Margin: 23.3% in 3Q '24.
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Adjusted ROE: 17.6% in 3Q '24.
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Cash Generation: BRL129 million in 3Q '24, compared to BRL7 million year-on-year and a cash burn of BRL61 million quarter-on-quarter.
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Net Debt-to-Equity Ratio: 7.1% in 3Q '24.
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Gross Debt: BRL5.4 billion at the end of 3Q '24.
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Cash Position: BRL4.7 billion at the end of 3Q '24.
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Presales: BRL3.4 billion in 3Q '24, 41% higher year-on-year and 35% higher quarter-on-quarter.
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Inventory at Market Value: BRL8.7 billion at the end of 3Q '24.
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Projects Delivered: 9 projects with a PSV of BRL1.1 billion in 3Q '24.
Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cyrela Brazil Realty SA Empreend e Part (CYRBY) reported a solid performance with a PSV of BRL2.5 billion launched in the quarter and BRL4.7 billion year-to-date.
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Sales increased by 24% year-on-year, reaching BRL2.5 billion in the quarter and BRL5.8 billion in 2024.
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The company's net revenue reached BRL2 billion, with a net income of BRL473 million and a net margin of 23.3%.
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The net debt-to-equity ratio was reduced to 7%, indicating strong cash generation and financial health.
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The company maintained a stable gross margin of 33.3%, reflecting controlled expenses and efficient operations.
Negative Points
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The Brazilian Central Bank's interest rate hikes and deteriorating inflation outlook pose challenges to the sector.
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Funding from savings accounts is a structural challenge, with potential long-term impacts on financing availability.
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The macroeconomic environment in Brazil remains uncertain, with high interest rates and tax issues posing risks.
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There is a shortage of workforce and high material costs due to inflation and FX rates, impacting construction operations.
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Competition in the landbank market remains tough, particularly in the low-income segment, affecting acquisition strategies.
Q & A Highlights
Q: How is the lack of funding from savings accounts affecting Cyrela and the sector, and do you foresee growth next year despite this challenge? A: Miguel Maia Mickelberg, CFO, explained that while funding is a structural challenge, Cyrela has not felt significant short-term impacts. Interest rates have slightly increased, but clients are still securing financing. The company does not anticipate changes in strategy due to funding challenges and is cautious about next year's growth projections.