Corpovael (CADUA) Q4 2023 earnings summary

Executive summary

• FY2023 met guidance, with revenue up 20.9% to MXN 4,506 million and EBITDA up 16.3% to MXN 745 million; home sales rose 8.1% to 3,782 units.

• 4Q23 revenue fell 6.6% and EBITDA fell 17.6% YoY, while home-sale revenue increased 16.2%; weaker land-plot sales drove the quarterly comparison.

Financial highlights

• FY2023 operating income rose 38.5% to MXN 522 million; net income increased 16.3% to MXN 302 million, while EPS rose 14.3% to MXN 0.93.

• 4Q23 net income declined 85.2% YoY to MXN 28 million and EPS fell to MXN 0.09 from MXN 0.60; net margin was 2.4% vs. 15.4%.

• FY2023 free cash flow increased 24.3% to MXN 1,276 million; 4Q23 free cash flow decreased 54.9% to MXN 361 million.

• Cash and cash equivalents were MXN 544 million at year-end, down 17.9% YoY; total debt, excluding origination fees and unamortized issuance costs, fell 31.3% to MXN 2,123 million.

Outlook and guidance

• FY2023 guidance was achieved: home-sale revenue grew 14.1%, total revenue 20.9%, and EBITDA 16.3%.

• 2024 guidance targets double-digit revenue and EBITDA growth; management cited scheduled full amortization of CADU19 notes in 2Q24 and efforts to offset inflation.