Plano & Plano Desenvolvimento Imobiliário S.A. (PLPL3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of BRL 718.9 million in Q3 2024, up 29.1% year-over-year and 3.1% sequentially, with net income reaching BRL 119.4 million, a 57.7% increase year-over-year and net sales at BRL 905.9 million, up 42.0% year-over-year.

• Land bank reached a historical high of BRL 21.8 billion, up 22.4% from 2Q24, meeting annual acquisition targets.

• Cash generation for Q3 2024 was BRL 103.8 million, up BRL 16.4 million from 2Q24.

• Surpassed BRL 1 billion in accumulated sales for the Pode Entrar program since 2023, with the program now representing 26% of total units contracted by the Municipality of São Paulo.

• Eight new projects launched in Q3 2024, totaling BRL 1,076 million in PSV, split between Pode Entrar and private market segments.

Financial highlights

• Net revenue for Q3 2024 was BRL 718.9 million, up 29.1% year-over-year and 3.1% sequentially; net income was BRL 119.4 million, with a net margin of 16.6%, up 3.0 percentage points year-over-year.

• Adjusted EBITDA for Q3 2024 was BRL 153.2 million (21.3% margin), up 47.5% year-over-year.

• Operating cash generation in Q3 2024 was BRL 103.8 million, with year-to-date at BRL 166 million.

• Net cash position at quarter-end was BRL 104.3 million; net debt/equity ratio at -12.4%.

• Adjusted gross margin for Q3 2024 was 34%; private market adjusted gross margin was 35.9%.

Outlook and guidance

• Adjusted gross margin in the private market expected to remain between 34% and 36% for 2024 and 2025.

• Continued focus on expanding the first urban range (lower income segment), with 35% of PSV targeted there.

• No significant changes in launch mix anticipated even if inflation rises; construction costs expected to remain under control.

• Barueri project (BRL 738 million PSV) expected to launch in Q1 2025 pending regulatory approval.

• Management remains confident in profitable expansion with controlled risks, supported by a robust landbank and strong demand in target segments.