Corpovael (CADUA) Q3 2024 earnings summary

Executive summary

• CADU is a leading Mexican housing developer with over 22 years of experience, specializing in affordable, middle-income, and residential homes, with a strong presence in Quintana Roo and other major cities.

• Achieved double-digit revenue and EBITDA growth in 3Q24, with significant debt reduction and positive free cash flow compared to 3Q23.

• Over 122,000 homes sold since 2001, with a 35.7% market share in Quintana Roo via INFONAVIT credits as of H1 2024.

• Recognized for sustainability, CADU leads in ECOCASA homes and has issued Mexico's first green bond in the housing sector.

• Completed the Cielo Nuevo project in Cancun, contributing over 6,300 homes certified under the ECOCASA program.

Financial highlights

• Revenue for LTM 3Q24 was MXN 2,779 million, down from MXN 3,297 million in 2023.

• 3Q24 revenue rose 15.1% year-over-year to MXN 1,177 million; 9M24 revenue slightly declined 1.3% to MXN 3,291 million.

• EBITDA for LTM 3Q24 was MXN 641 million, with a margin of 17%.

• Net income for LTM 3Q24 was MXN 138 million, with a net margin of 4%.

• Free cash flow surged to MXN 342 million in 3Q24 from MXN 13 million in 3Q23; 9M24 free cash flow was MXN 365 million.

Outlook and guidance

• CADU maintains a four-year land reserve policy to support future developments.

• Focus remains on sustainable housing, with over 1,500 EDGE-certified homes expected by end-2024.

• Growth in Quintana Roo expected to continue; flexibility in business model to adapt to market changes.

• Full-year guidance will not be met due to inventory shortages from weather events and permit delays.