Vinte Viviendas Integrales (VINTE) Q3 2023 earnings summary

Executive summary

• 3Q’23 revenue rose 4.9% YoY to Ps.1,067 million and EBITDA rose 4.6% to Ps.193 million; 9M revenue, EBITDA and net income grew 9.5%, 12.1% and 8.8%, respectively.

• Results were described as in line with the annual business plan, with construction and permits positioned to support a strong 4Q.

Financial highlights

• 3Q’23 net income declined 2.1% YoY to Ps.101 million; net margin fell 0.6 p.p. to 9.5%, and EPS decreased 2.9% to Ps.0.44.

• 9M’23 net income increased 8.8% to Ps.309 million; controlling-interest profit rose 9.2% to Ps.299 million.

• 3Q’23 gross profit rose 3.6% to Ps.343 million, while gross margin declined 0.5 p.p. to 32.1%; EBITDA margin remained 18.1%.

• 9M’23 EBITDA margin improved 0.4 p.p. to 18.7%; gross margin decreased 0.2 p.p. to 30.8%.

Outlook and guidance

• FY23 revenue growth target of 10%–15%; management said sales, permits, infrastructure, development and construction were in place for a strong 4Q.

• Management expected planned 4Q signings to generate positive cash flow and reduce debt and leverage; year-end net debt/EBITDA target remained below 2.80x.

• More homes were built than titled in 3Q, supporting readiness for 4Q; permits for three developments’ new phases had been granted.