In This Article:
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Revenue: EUR235 million, a 42% growth compared to last year.
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Gross Margin: Above 24%, the strongest since 2018.
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EBITDA: EUR31.3 million.
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Recurring Pre-tax Profit: EUR22.4 million.
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Net Presales: Over 1,000 units in the first semester, a 15% growth.
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Residential Deliveries: 675 units, an 18% increase.
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Average Selling Price (ASP): Increased from EUR286,000 to EUR335,000 per unit.
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Sales Backlog: 3,700 units, EUR1.2 billion in future revenues.
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Net Debt: EUR340 million, with a loan-to-value ratio of 13.8%.
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Net Asset Value: EUR13.34 per share, a 2.8% increase compared with December 2023.
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Free Cash Flow: EUR66.2 million, on track to meet the year-end target of EUR100 million to EUR125 million.
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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Metrovacesa SA (FRA:MS6N) reported a 42% growth in revenues for the first half of 2024, reaching EUR235 million.
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The company achieved a strong commercial activity with over 1,000 presales, marking a 15% growth compared to the previous year.
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Gross margins improved to above 24%, the highest since 2018, despite increases in salaries and construction costs.
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The company has a solid sales backlog of 3,700 units, translating to EUR1.2 billion in future revenues.
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Metrovacesa SA (FRA:MS6N) maintains a low loan-to-value ratio of 13.8%, indicating a solid financial structure.
Negative Points
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The land sales market remains challenging, with some sales potentially requiring discounts to book value.
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The commercial land portfolio saw a decrease of 6.7% in value due to higher yields required by the market.
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The company faces increased financing costs, which could impact future profitability.
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There is uncertainty in the office market, affecting the commercial land segment.
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The company is dependent on municipalities' approval for legislation changes that could impact land use and development opportunities.
Q & A Highlights
Q: Can you explain the legislation in Madrid regarding the conversion of land use from commercial to residential? Is this financially attractive for Metrovacesa? A: The legislation allows residential use on commercial land designated for offices, but only for social housing or protected housing for rent for 15 years. After this period, the units can be sold or rented at market prices. This can be attractive, especially in prime locations, as it offers potential upside after the protected period. However, it may not appeal to private equity seeking high IRRs but could be interesting for funds investing in affordable housing.