Vinte Viviendas Integrales (VINTE) Q2 2023 earnings summary

Executive summary

• Q2 revenue rose 8.2% YoY to Ps. 1,054 million; EBITDA increased 18.2% to Ps. 227 million and net income grew 17.1% to Ps. 130 million. H1 revenue growth was 12.2%, above the 2023 business plan.

• Growth reflected higher home-titling revenue and average selling prices, alongside 1.5% growth in titled homes; management reported first-half sales, income and profitability above plan.

• Presale customer inventory through June was up 20.9% YoY, supporting the expectation of a fourth consecutive year of positive cash flow.

Financial highlights

• Q2 revenue was Ps. 1,053.5 million, up 8.2% YoY; H1 revenue growth was 12.2% and LTM revenue reached Ps. 4,572.1 million, up 7.7%.

• Q2 gross profit rose 9.4% to Ps. 329.7 million; gross margin improved to 31.3% from 30.9%.

• Q2 EBITDA increased 18.2% to Ps. 227.3 million; net income rose 17.1% to Ps. 130.2 million, with net margin at 12.4% versus 11.4%.

• Q2 titled homes rose 1.5% to 943; average sale price increased 6.8% to Ps. 1.102 million.

• LTM through June revenue was a record Ps. 4,572 million; average home price reached Ps. 1.13 million.

Outlook and guidance

• Management expects to close the fourth consecutive year with positive cash flow, citing presale momentum and the ability to deed homes as construction permits.

• The year-end net leverage objective is below 2.80x; leverage remained below 3.00x for the third consecutive quarter.

• First-half revenue growth of 12.2% was above the business plan; management reported sales and profitability above plan at the start of the year.