Vinte Viviendas Integrales (VINTE) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 10.6% to MXN 4,820 million, EBITDA increased 14.1% to MXN 864 million, and net income grew 5.0% to MXN 433 million.

• Q4 revenue rose 12.6% and EBITDA 18.2% YoY, while net income declined 3.2% amid higher debt costs.

• Year-end net debt/EBITDA was below 3.00x; cash was MXN 1,507 million and 78% of debt was sustainable, SDG- or EDGE-linked.

Financial highlights

• FY2023 revenue was MXN 4,820 million (+10.6%); gross profit reached MXN 1,501 million (+14.2%) and gross margin was 31.1%, up 0.9 p.p.

• FY2023 EBITDA was MXN 864 million (+14.1%), with a 17.9% margin versus 17.4% in 2022.

• FY2023 net income was MXN 433 million (+5.0%), net margin 9.0% versus 9.5%; EPS was MXN 1.96 versus MXN 1.86.

• Q4 revenue was MXN 1,777 million (+12.6%), gross profit MXN 564 million (+24.5%), and EBITDA MXN 294 million (+18.2%).

• Q4 net income fell 3.2% to MXN 124 million; EBITDA margin improved 0.7 p.p. to 16.5%, while net margin declined 1.1 p.p. to 7.0%.

Outlook and guidance

• 2024 business plan calls for continued investment and growth, based on an optimistic outlook for the housing sector.

• EDGE certification target increased to 16,000 cumulative homes for 2024, from the prior target of 10,518.