Corpovael (CADUA) Q2 2024 earnings summary

Executive summary

• Homes sold increased 9.1% year-over-year to 1,008 units in 2Q24, driven by affordable entry-level segment growth.

• Total revenue rose 0.3% to MXN 1,172 million in 2Q24, with homes sold revenue up 7.2% and land plot sales down 28.1%.

• EBITDA grew 11.9% to MXN 209 million, with margin up 1.9 pp to 17.8% in 2Q24.

• Net income declined 30.3% year-over-year to MXN 61 million, mainly due to higher deferred taxes and lower land plot sales.

• Debt reduction efforts continued, with total debt down 4.0% year-over-year to MXN 2,198 million.

Financial highlights

• Gross income was MXN 318 million in 2Q24, down 0.8% year-over-year; gross margin stable at 27.2%.

• Operating income decreased 3.5% to MXN 130 million; operating margin at 11.1%.

• Free cash flow was -MXN 48 million in 2Q24, compared to MXN 437 million in 2Q23.

• Cash and cash equivalents fell 7.6% to MXN 490 million.

• Working capital cycle increased by 63 days to 804 days, mainly due to higher inventory and accounts receivable.

Outlook and guidance

• 2024 guidance maintained: about 10% EBITDA growth and positive revenue results expected.

• Demand in Quintana Roo remains strong, supported by infrastructure projects and increased Infonavit credits.