Even Construtora e Incorporadora (EVEN3) Q2 2024 earnings summary

Executive summary

• Net sales reached BRL 486 million, with inventory sales at BRL 322 million, the highest since 2020, up 63% year-over-year.

• Net revenue totaled BRL 923 million, a 78% increase compared to the same quarter last year.

• Gross profit was BRL 190 million, up 73% year-over-year, with an adjusted gross margin of 26.8%.

• Net income (Even ex-Melnick) rose 147% year-over-year to BRL 114 million; consolidated net income was BRL 101 million.

• Launched Faena São Paulo phase 1 with BRL 1.1 billion PSV, 45% sold at launch.

Financial highlights

• Inventory sales rose 63% year-over-year; SoS at 16%.

• Accumulated sales for the year reached BRL 770 million, up 9% despite fewer launches.

• Finished inventory dropped 25% sequentially, now BRL 206 million (10% of total inventory).

• Cash and cash equivalents at BRL 628 million; net debt at BRL 805 million; net debt/equity at 40.1%.

• Paid BRL 100 million in dividends during the quarter.

Outlook and guidance

• Four launches planned for 2024, including Arizona, Harmonia, Tietê, and Alameda Franca, as approval processes normalize.

• Land bank reached BRL 5.6 billion in PSV, with new acquisitions in prime São Paulo neighborhoods.

• Inventory at market value totaled BRL 2.1 billion, with 66% of 2024 and 70% of 2025 inventory already sold.

• High volume of deliveries expected in the next 12 months, with BRL 2.7 billion PSV.

• Expectation of continued margin improvement and profitability into 2025 as cash generation increases.