EZTEC Empreendimentos e Participações S.A. (EZTC3) Q4 2023 earnings summary

Executive summary

• FY23 net income was R$239.5MM, down 26.3% YoY; 4Q23 net income reached R$82.8MM, up 162.8% YoY.

• FY23 gross sales rose 4.5% to R$1.50B despite launches falling 44.4%; deliveries reached a record R$1.83B PSV.

• Cautious launch strategy prioritized inventory sales, particularly units under construction and scheduled for delivery through 2025.

Financial highlights

• 4Q23 net revenue was R$337.9MM, up 34.2% QoQ and 8.7% YoY; FY23 net revenue was R$1.121B.

• 4Q23 gross profit was R$112.5MM; FY23 gross profit was R$343.7MM, down 10.5%.

• 4Q23 EBIT was R$70.5MM, up 126.1% QoQ and 179.4% YoY; FY23 EBIT fell 21.1% to R$189.1MM.

• FY23 EPS was R$1.08 versus R$1.47 in 2022.

Outlook and guidance

• Planned 1Q24 launches included Mooca Città Firenze and Milano, Lindenberg Vista Brooklin, and Villares Parada Inglesa.

• Sell-side 2024 median estimates were R$1.41B net revenue, 37.2% gross margin, R$336.8MM EBIT, and R$387.7MM net income; these were analyst estimates, not formal guidance.

• Receivables from 4Q23 deliveries were expected to convert to cash in subsequent months; customer-to-bank transfers averaged three months.