RNI Negócios Imobiliários (RDNI3) Q3 2024 earnings summary

Executive summary

• Operational and financial indicators improved in 3Q24, driven by deleveraging, asset monetization, and resumed launches, with a focus on MHML and SBPE products.

• Four projects were completed in 3Q24, delivering 2,264 units and R$512 million in PSV, surpassing previous years.

• Adjusted gross profit rose 29% year-over-year to R$53 million in 3Q24, with margin returning to 30%.

• Net loss for 3Q24 was -R$9.4 million, a 78% improvement year-over-year and 62% sequentially.

• Focus remains on sustainable growth, improved operational indicators, and a robust landbank for future launches.

Financial highlights

• Net revenue reached R$176 million in 3Q24, up 35% year-over-year and 42% sequentially; 9M24 revenue was R$449 million, up 11% year-over-year.

• Adjusted gross margin improved to 30% in 3Q24, up 5.5 p.p. sequentially and 8.1 p.p. from 3Q23.

• EBITDA for 3Q24 was R$8.4 million, reversing a negative result in 2Q24.

• Selling expenses fell 43% year-over-year; administrative expenses down 7% year-over-year.

• Net loss per share for 3Q24 was -R$0.26; for 9M24, -R$2.07.

Outlook and guidance

• Management expects continued recovery, strong operational cash generation, and attractive margins, supported by resumed launches and a robust landbank.

• Plans to maintain focus on MHML and SBPE products, leveraging a landbank of R$5.2 billion and 23,279 units.

• Price gains on resale of cancellations reached 8.9% in 3Q24, with LTM resale value up 9.6%.