Plano & Plano Desenvolvimento Imobiliário S.A. (PLPL3) Q2 2024 earnings summary

Executive summary

• Achieved record launches totaling BRL 1.064 billion in 2Q24, up 80.7% year-over-year and 128.6% sequentially, with 3,394 units sold and a historic landbank of BRL 17.8 billion (+34.8% YoY).

• Net sales reached BRL 797 million, up 37.7% year-over-year and 34.3% sequentially.

• Net revenue hit a record BRL 698 million in Q2 2024 (+43.7% YoY), and net income reached BRL 95.3 million (+38.2% YoY), both all-time highs.

• Cash generation was BRL 87.5 million in 2Q24 (+157.8% YoY), and ROE for the last twelve months was 47.7%.

• Land bank target for H1 2024 achieved, with ongoing focus on well-located acquisitions.

Financial highlights

• Net revenue: BRL 697.6 million in 2Q24 (+43.7% YoY); net sales: BRL 797 million (+37.7% YoY); gross profit: BRL 229.6 million (+31.9% YoY); gross margin: 32.9%.

• Adjusted gross profit: BRL 238 million; adjusted gross margin: 34.1%.

• Adjusted EBITDA: BRL 122.9 million (17.6% margin), up 31.7% YoY.

• Net cash position of BRL 0.4 million at quarter-end; net debt/equity at -0.1%.

• Equity increased 16.5% since December 2023, reaching BRL 719 million.

Outlook and guidance

• Management remains confident in sustaining robust launch pipeline and profitable expansion for 2024 and 2025, supported by a strong landbank and demand in low- and middle-income segments.

• Private market gross margin expected to remain around 34%-36% through 2024-2025.

• Pode Entrar program margin expected to stabilize near 26% as scale improves.

• Anticipates increased payout ratio for dividends as cash generation grows.