Corpovael (CADUA) Q4 2024 earnings summary

Executive summary

• 4Q24 revenue grew 2.2% YoY to MXN 1,196 million, driven by land plot sales despite a 59.1% drop in homes sold.

• Full-year 2024 revenue was MXN 4,487 million, nearly flat YoY; net income fell 22.9% to MXN 232 million.

• Credit ratings were upgraded by HR Ratings and Verum; free cash flow for 2024 was positive at MXN 205 million.

• Inventory and working capital cycle increased due to land acquisitions and project delays in Quintana Roo.

• ESG achievements included new EDGE certifications and multiple sustainability awards.

Financial highlights

• 4Q24 homes sold: 449 units (down 59.1% YoY); average sale price up 63.2% to MXN 1.7 million.

• 4Q24 gross income: MXN 329 million (down 5.4% YoY); EBITDA: MXN 198 million (down 13.9% YoY); net income: MXN 71 million (up 147.9% YoY due to lower tax expense).

• 2024 EBITDA: MXN 716 million (down 4.0% YoY); operating income: MXN 428 million (down 18.1% YoY).

• 4Q24 free cash flow: -MXN 160 million; 2024 free cash flow: MXN 205 million (down 84.7% YoY).

• Cash and equivalents at year-end: MXN 466 million (down 14.4% YoY); total debt: MXN 2,164 million (up 1.9% YoY).

Outlook and guidance

• 2024 guidance was missed due to project delays from weather and municipal changes in Quintana Roo.

• 2025 revenue and EBITDA expected to grow by more than 5%, supported by Infonavit demand, land plot sales, and new project titling in Guadalajara.