Helbor Empreendimentos (HBOR3) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated sales reached R$494 million, all from completed and under-construction units, with no new launches; YTD sales totaled R$1.47 billion–R$1.5 billion PSV, up 31.7% YoY, with 86% from finished/under-construction and 14% from launches.

• Three projects delivered in São Paulo in Q3, totaling R$449 million in VGV and a 94% average sales rate.

• Strong sales event in Mogi das Cruzes generated R$47 million PSV; company recognized for excellence in mixed-use development and leadership.

• Focus remains on reducing inventory and generating cash to lower leverage.

Financial highlights

• Net revenue for 3Q24 was R$346.6–R$347 million, up 7.6% sequentially and 6.8% YoY; 9M24 net revenue was R$964–R$965 million, up 4% YoY.

• Gross margin in 3Q24 reached 32.3%, up 3.3 p.p. YoY; adjusted gross margin was 45.8%.

• Net income attributable to controlling shareholders in 3Q24 was R$9.2 million (EPS R$0.07); consolidated net income was R$35.6 million.

• General administrative expenses in 3Q24 were R$25.5 million, down 13% sequentially; GAE/NOR was 7% in LTM24.

• Net debt at 3Q24 was R$1.77 billion, with net debt/equity ratio at 68.8%, down 2.4 p.p. sequentially.

Outlook and guidance

• Management remains confident in achieving 2024 targets, emphasizing inventory reduction and cash generation to further deleverage.

• More launches are expected in 2025 as inventory levels drop; flexible approach to launches in response to macroeconomic conditions.

• Future deliveries total R$3.45 billion in PSV, with 3,978 units and 69% already sold.