Tecnisa (TCSA3) Q1 2023 earnings summary

Executive summary

• Net revenue rose 194.3% YoY to R$139.7 million; adjusted gross margin reached 29.6%, up 10.8 p.p., and net income was R$4.668 million.

• Landbank potential sales value was R$4.3 billion, including R$2.9 billion attributable to Jardim das Perdizes; priorities included commercial execution, cost control and shareholder value creation.

Financial highlights

• Adjusted gross profit was R$41.4 million, up 364.2% YoY; reported gross margin was 20.6%.

• Gross operating revenue rose 193.3% YoY to R$143.3 million, mainly on Kalea Jardins revenue recognition and higher construction activity.

• Adjusted EBITDA was R$25.6 million, up 147.0% YoY, with an 18.3% margin, down 3.5 p.p.

• Administrative expenses fell 5.7% YoY to R$12.7 million; selling expenses were R$7.5 million, while selling expenses/net revenue improved to 6.9% from 13.9%.

Outlook and guidance

• Next deliveries were scheduled for H2 2023; launch preparations advanced alongside procedures for the Água Branca Urban Operation CEPAC auction.

• Continuation of launches and construction progress was expected to support margin recovery and fixed-cost dilution.

• Contracted receivables from consolidated projects were expected to generate R$287 million in collections during 2023 and 2024.

• Parent liquidity plans included selling completed inventory and non-strategic investee land, assigning receivables, maximizing earnings and dividends, and managing administrative expenses.