Trisul (TRIS3) Q2 2024 earnings summary

Executive summary

• Net revenue reached R$318.5 million in 2Q24, up 19.3% year-over-year and 5.2% quarter-over-quarter, with gross profit rising 24.5% to R$79.4 million and net profit increasing 5.3% to R$31.0 million; gross margin improved to 24.9%.

• Adjusted EBITDA was R$61.4 million, margin 19.3%, up 11.8% year-over-year.

• Four projects were delivered in 2Q24, totaling R$745.6 million in PSV, including both mid- and high-income segments.

• Gross sales totaled R$335.7 million, up 2.4% year-over-year; net sales were R$315.4 million, up 4.7%.

• Landbank expanded to R$5.6 billion, with a strategic increase in off-balance assets to support future launches.

Financial highlights

• Gross profit adjusted for SFH costs was R$95.1 million, with an adjusted gross margin of 29.8%.

• Net debt at June 2024 was R$678.6 million; net debt to equity ratio was 47.4%, slightly down from 47.6% in 1Q24.

• Cash and cash equivalents were R$269.6 million, down 13.4% sequentially.

• Total indebtedness at the end of 2Q24 was R$948.2 million, down 4% sequentially.

• Receivables at the end of June 2024 were R$451.9 million.

Outlook and guidance

• Guidance for gross sales and launches remains between R$1.8 billion and R$2.2 billion for the 18 months starting July 2023.

• Important launches are planned for the second half of 2024, with confidence in meeting targets.

• Net debt to equity ratio is expected to fall significantly by year-end due to project deliveries and receivables.

• Management expects to capitalize on the real estate sector's recovery, focusing on inventory sales and a diverse product range in São Paulo.

• Strategic land acquisitions position the company for launches starting in 2026.