Lavvi Empreendimentos Imobiliários (LAVV3) Q4 2024 earnings summary

Executive summary

• Achieved record operational and financial results in 2024, with launches up 91%–97% and net sales up 115% year-over-year, driven by strong project launches and high sales velocity despite a challenging macroeconomic environment with high interest rates.

• Ended the year with a net cash position of R$129 million and a landbank of R$8.0 billion, supporting future growth.

• Speed of sales (SOS) remained high at 36% in Q4 and 60% for the year, with inventory at R$2.2 billion and only 0.8% in finished units.

• Major launches included Heaven by Yoo (R$1.2 billion, 65% sold), Aura Pacaembu (R$322 million, 70% sold), and Novvo Marajoara (R$126 million, 75% sold).

• Robust cash generation and high sales velocity contributed to strong profitability and shareholder returns.

Financial highlights

• Net revenue reached R$1.5–1.55 billion in 2024 (+71%–72% Y/Y), with Q4 revenue at R$575 million (+125% Y/Y).

• Adjusted gross margin was 37.6% in Q4 and 35.5% for the year, up 1.3–1.5 percentage points year-over-year.

• Net income was R$343 million in 2024 (+48% Y/Y, net margin 22.1%), with Q4 net income at R$120 million.

• EBITDA reached R$424 million in 2024 (+84% Y/Y), with operating income before financial results and taxes at R$397 million.

• Backlog revenue reached R$2.4 billion (+80% vs. 4Q23) with a projected margin of 35.1%.

Outlook and guidance

• Planned launches for 2025 total R$2.5 billion, focusing on mid/high-end and My Home, My Life segments.

• Management remains optimistic but cautious for 2025, monitoring high interest rates and market conditions.

• Backlog revenue and a strong landbank provide a solid foundation for future growth.