In This Article:
Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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EZ TEC Empreendimentos e Participacoes SA (BSP:EZTC3) reported a 63% growth in launches, reaching 1.6 billion BRL in 2024.
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The company achieved a record net sales of approximately 1.7 billion BRL, with gross sales nearing 1.9 billion BRL.
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Net revenue increased by roughly 50% from 2023 to 2024, surpassing expectations.
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Gross profit rose to 533 million BRL, with a significant quarterly profit margin increase to 37%.
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The company plans a large volume of launches in 2025, totaling 2.6 billion BRL, with a diverse range of projects across income classes.
Negative Points
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Deliveries in 2024 were described as 'very timid,' indicating potential challenges in meeting delivery targets.
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The company faces a challenging scenario with high interest rates impacting real estate credit rates.
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There is a concern about the scarcity of labor, which could affect construction costs and timelines.
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The company has increased its leverage, which may pose risks if not managed carefully.
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Competition in certain regions is fierce, potentially impacting the company's ability to acquire real estate at favorable prices.
Q & A Highlights
Q: What is the product mix for EZ TEC in 2025, and how do you see the gross margin evolving? A: Sylvio, CEO, explained that the company plans to launch a variety of projects across different income classes, including high, mid, and low-income segments. The gross margin improvement is expected to come from better GNA numbers and not just price increases. The company anticipates maintaining or improving margins through operational efficiencies and cost management.
Q: What are the challenges in deliveries for 2025, and is there a possibility of selling the chattel mortgage portfolio? A: Emilio, Financial and IR Director, mentioned that the main challenge is the interest rate environment. The company is considering securitization if necessary but is currently comfortable with the financing terms offered. They have a strong relationship with banks, which aids in managing transfers and payments.
Q: How does EZ TEC plan to manage its leverage and return to shareholders? A: Emilio stated that the company is comfortable with its current leverage level, which has increased due to the growth in the chattel mortgage portfolio. They plan to maintain this level, potentially increasing dividend distributions or using other methods to manage returns to shareholders.