RNI Negócios Imobiliários (RDNI3) Q2 2024 earnings summary

Executive summary

• Gross sales reached R$200 million in 2Q24, consistent with 1Q24, totaling R$413 million for 1H24.

• Net sales were R$134 million in 2Q24, with transfers totaling R$102 million, up 25% sequentially and 21% year-over-year.

• Average price for My House My Life (MHML/MCMV) units rose 5% sequentially and 11% year-over-year to R$233,000.

• Net loss for 2Q24 was -R$25.1 million, a 50% improvement sequentially.

• Significant reduction in debt, with R$75 million in corporate debt repaid in 2Q24, reaching the lowest net and gross debt levels in 12 months.

Financial highlights

• Net operating revenue for 2Q24 was R$124.7 million; gross profit was R$18.8 million with a 15% gross margin.

• Adjusted EBITDA for 2Q24 was R$1.1 million, down 93% year-over-year.

• Inventory turnover ratio (VSO) improved to 32% in 2Q24, up 3.5 p.p. sequentially and 8.2 p.p. year-over-year.

• Inventory at market value was R$517 million, with 85% in-progress and 15% completed units.

• Net debt at quarter-end was R$508 million, down 4% sequentially and 27% year-over-year.

Outlook and guidance

• Preparing SBPE project portfolio for launches and completions in 2H24, with focus on operational efficiency and cash generation.

• Plans to launch over R$1 billion in new projects in the second half of 2024.

• Expectation of improved construction progress after weather-related delays and seasonality.