LPS Brasil - Consultoria de Imóveis (LPSB3) Q2 2024 earnings summary

Executive summary

• Intermediated transaction volume reached R$3.5 billion in 2Q24, up 20% year-over-year, and R$6.0 billion in 1H24, up 16% year-over-year, despite project approval delays in São Paulo.

• CrediPronto mortgage origination grew 9% year-over-year to R$852 million in 2Q24, with market share at 5.3%.

• EBITDA margin improved to 38.6% in 2Q24 (+3.2 pp YoY), the second highest in a decade, and 37.6% in 1H24 (+4.0 pp YoY).

• Net income before IFRS was R$11.9 million in 2Q24 (+10% YoY) and R$19.4 million in 1H24 (+4.5% YoY); net income after IFRS was R$7.6 million in 2Q24, up 64% YoY.

• Franchise network expanded to 186 stores, with continued focus on selective expansion and performance improvement.

Financial highlights

• Net revenue for 2Q24 was R$45.3 million, down 3% year-over-year; 1H24 was R$83.2 million, down 6%.

• Recurring expenses fell 8% YoY to R$27.8 million in 2Q24 and 12% YoY in 1H24.

• EBITDA reached R$17.5 million in 2Q24 (+6% YoY), with margin at 38.6%.

• Cash and cash equivalents at quarter-end were R$22 million; total including investments was R$61.3 million.

• Cash generated from operations was R$7.1 million in 2Q24.

Outlook and guidance

• Positive outlook for credit origination in H2 2024, driven by normalization of savings and funding.

• Continued focus on cost control, margin improvement, franchise expansion, and digital transformation.

• Operational efficiency remains a focus, with EBITDA margin targeted around 30% on an LTM basis.

• Ready to analyze new business opportunities to maximize returns.