Metrovacesa (MVC) Q4 2023 earnings summary

Executive summary

• 2023 revenue rose 13% to €586.5m and EBITDA increased 62% to a record €74.2m; adjusted pre-tax profit reached €48.6m.

• 1,675 homes were delivered; presales rose 11% to 1,836 units and year-end backlog reached 3,332 units with €1.084bn in expected revenue.

Financial highlights

• Gross profit reached €127.6m, up 31.4%; development gross margin rose to 22.0% from 21.2%, and net margin was 17.8%.

• EBITDA margin increased to 12.7% from 8.8%; reported net loss narrowed to €20.8m from €23.5m.

• Adjusted pre-tax profit, excluding €65.1m of fair-value changes and provisions, increased 24.9% to €48.6m.

Outlook and guidance

• 2024 gross operating cash flow guidance is €100m–€125m, dependent on land sales and acquisitions; 2023 generated €131.6m.

• Presales cover 82% of planned 2024 deliveries and 57% of 2025 deliveries; the medium-term objective remains ~2,000 homes annually.

• Potential ECB rate cuts could support housing demand later in 2024; solid sales coverage and binding land-sale contracts supported the outlook.