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

Executive summary

• Achieved record net revenue of BRL 718.9 million in 3Q24, up 29.1% year-over-year and 3.1% sequentially, with net income reaching BRL 119.4 million, up 57.7% year-over-year and a net margin of 16.6%.

• Landbank reached a historical high of BRL 21.8 billion, up 22.4% from 2Q24, supporting future growth.

• Cash generation for the quarter was BRL 103.8 million, with year-to-date at BRL 166.4 million, reflecting strong operational execution.

• Private market net sales set a new record at BRL 905.9 million in 3Q24, up 42.0% year-over-year and 13.7% sequentially.

• Focus remains on low- and middle-income housing, with strong performance in Minha Casa Minha Vida and Pode Entrar programs.

Financial highlights

• Net revenue for 3Q24 was BRL 718.9 million (+29.1% YoY); net income was BRL 119.4 million (+57.7% YoY); adjusted EBITDA was BRL 153.2 million (21.3% margin, +47.5% YoY).

• Gross margin was 33.1% in 3Q24 (+1.1pp YoY); adjusted gross margin was 34.0%.

• Cash and equivalents were BRL 690.2 million; net cash position of BRL 104.3 million; net debt/equity ratio at -12.4%.

• Return on average equity for the last 12 months was 47.2%.

• Operating income was BRL 154.7 million (+72.5% YoY), with a margin of 21.5%.

Outlook and guidance

• Management expects continued expansion with controlled risks and strong profitability, supported by a robust landbank and high demand in target segments.

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

• Focus remains on São Paulo metropolitan area and affordable housing programs.

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