Tecnisa (TCSA3) Q4 2023 earnings summary

Executive summary

• FY2023 net operating revenue rose 84.1% to R$423.4 million; consolidated net loss was R$55.3 million versus net profit of R$2.3 million in FY2022.

• All required Jardim das Perdizes residential CEPACs were acquired in December 2023, unlocking R$5.3 billion of launch PSV for 2024–2026.

• Revenue backlog reached R$167 million, up 120% YoY, supporting future revenue and gross profit recognition.

Financial highlights

• Consolidated FY2023 revenue was R$437.1 million; net operating revenue was R$423.4 million, up 84.1% YoY.

• Adjusted gross profit was R$69.2 million, up 58.2% YoY, with a 16.3% adjusted gross margin.

• 4Q23 net revenue was R$113 million, up 61.7% YoY; adjusted gross loss was R$8 million, versus adjusted gross profit of R$15 million in 4Q22.

• Administrative expenses totaled R$59 million, down 8.9% YoY; selling expenses were R$27 million, down 7.4%.

• 4Q23 cash, cash equivalents and securities totaled R$106 million; consolidated cash and cash equivalents were R$83.9 million at year-end.

Outlook and guidance

• Jardim das Perdizes launch guidance for 2024–2026 totals R$5.3 billion PSV, with R$2.8 billion attributable share and expected gross margins of 46%–50%.

• Planned total PSV is R$1.7 billion in 2024, R$1.5 billion in 2025 and R$2.1 billion in 2026; attributable shares are R$0.9 billion, R$0.8 billion and R$1.1 billion.

• Recanto Oliveiras launched in March 2024 with R$583 million PSV; 40% of its first tower was sold by March 26.

• Five project deliveries were expected in 2024 to support cash generation; priorities also included improving debt ratios and relaunching the low-income segment under tencasa.