Vinte Viviendas Integrales (VINTE) Q1 2023 earnings summary

Executive summary

• Q1'23 revenue reached MXN 923m, up 17.2% YoY; EBITDA rose 13.5% to MXN 150m and net income increased 11.5% to MXN 78m.

• Growth reflected 6.9% more homes titled and a 9.4% increase in average sale price to MXN 1.139m.

• Net debt/EBITDA improved to 2.86x from 3.20x in Q1'22; quarter-end cash was MXN 704m.

Financial highlights

• Revenue rose to MXN 922.8m from MXN 787.2m; gross profit grew 15.2% to MXN 264.7m.

• EBITDA increased 13.5% to MXN 149.8m; EBITDA margin declined 0.5 p.p. to 16.2%.

• Net income rose 11.5% to MXN 78.1m; net margin fell 0.4 p.p. to 8.5%.

• EPS increased to MXN 0.36 from MXN 0.31; controlling-interest earnings grew 13.5% to MXN 77.2m.

• Home equipment and technology revenue grew 35.5% to MXN 57m; new-home titling revenue rose 15.9% to MXN 859m.

Outlook and guidance

• Planned 2023 investment is ~MXN 3.5bn for sustainable communities, including ~MXN 200m for eMobel and ~MXN 100m for Xante.

• Growth plans focus on organic expansion in existing markets and replicating community developments in new states.

• Q1 earnings growth exceeded the stated 10%-15% guidance range, according to the CEO; reported Q1 net income growth was 11.5%.