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• Net Revenue: BRL479 million in Q3 2024, over 100% growth from Q1 2024.

• Gross Profit: Increased from BRL82 million to BRL163 million in Q3 2024.

• Gross Margin: Reached 34% in Q3 2024, with future projections firmly above 40%.

• Equity Method Gains: BRL29 million in Q3 2024, contributing to a total of BRL84 million over the past 12 months.

• Financial Results: BRL37 million in Q3 2024, primarily from fiduciary sale portfolio.

• Net Profit: BRL133 million in Q3 2024, a 120% increase from Q1 2024.

• Return on Equity (ROE): Approximately 11.4% when annualized.

• Dividend Payout: Total of BRL180 million, including BRL31 million quarterly and BRL150 million extraordinary dividends.

• Landbank Value: BRL10.355 billion at the end of Q3 2024.

• Sales Performance: 85% of units to be delivered in 2024 already sold; significant sales speed increase in 2024.

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Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• EZ TEC Empreendimentos e Participacoes SA (BSP:EZTC3) reported significant growth in net revenue, with over 100% increase from Q1 to Q3 2024.

• The company achieved a gross margin of 34% in Q3, with future projections firmly above 40%, indicating strong profitability.

• Sales speed has improved significantly, with almost half of the total projected sales sold within the first three months of each project launch in 2024.

• The company has a well-distributed landbank valued at BRL10.355 billion, sufficient for the next three years, reducing the need for immediate land acquisitions.

• EZ TEC announced an extraordinary dividend payout of BRL180 million, reflecting strong financial health and shareholder returns.

Negative Points

• The medium income segment in Sao Paulo has lost strength, potentially impacting future sales in this category.

• Interest rate increases have affected client mortgage approvals, posing a challenge for future sales.

• The company faces uncertainties in the macroeconomic environment, which could impact future growth and sales.

• There is a significant reliance on the fiduciary sale portfolio, which could pose risks if not managed effectively.

• The company's inventory levels have increased, particularly in the high-income segment, which may require strategic management to avoid overstock.

Q & A Highlights

Q: Can we expect extraordinary dividend payouts over the next few years given the current net debt level? A: Silvio Ernesto Zarzur, CEO, mentioned that while the 25% dividend payout is certain, any extraordinary payouts will be evaluated on a term-by-term basis. The strategy will be reassessed as needed in the future.