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% quarter-on-quarter, with net sales of BRL 797 million (+37.7% YoY).

• Net revenue reached a record BRL 698 million in Q2 2024, up 43.7% year-over-year and 40.6% sequentially.

• Net income hit BRL 95.3 million, a 38.2% increase year-over-year and 129.6% sequentially, marking the highest quarterly profit to date.

• Landbank reached BRL 17.8 billion in sales potential, the largest in company history, with H1 2024 acquisition targets met.

• Continued expansion in social impact initiatives through Instituto Plano & Plano.

Financial highlights

• Net revenue: BRL 698 million (+43.7% YoY); net sales: BRL 797 million (+37.7% YoY); gross profit: BRL 238 million; gross margin: 34.1%.

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

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

• Commercial expenses at 8.7% of net revenue; G&A at 5.6%, a 1.6 p.p. improvement quarter-on-quarter.

• Cash and cash equivalents at BRL 378 million as of 06/30/2024.

Outlook and guidance

• Confident in sustaining robust launch pipeline and growth for 2024 and 2025, focusing on low- and mid-income segments in São Paulo.

• 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.

• Inventory/sales ratio improved to 0.97 in Jun/24, indicating better inventory management.