Earnings Release
1Q24
SUMMARY
- MESSAGE FROM MANAGEMENT
- OPERATIONAL PERFORMANCE
- FINANCIAL PERFORMANCE
- ABOUT GAFISA
- ANNEXES
Earnings Release | 1st Quarterly 2024
São Paulo, May 15, 2024 Gafisa S.A. (B3: GFSA3), announces today the operational and financial results for the first quarter of 2024 (1Q24). Gafisa's operational and financial information, except where otherwise indicated, is presented based on consolidated figures and in thousands of reais (R$), prepared in accordance
with Accounting Practices Adopted in Brazil and the International Financial Reporting Standards (IFRS) applicable to real estate development entities in Brazil, as approved by the Accounting Pronouncements Committee (APC), the Brazilian Securities and Exchange Commission (Brazilian SEC) and the Federal Accounting Council (CFC).
HIGHLIGHTS
Gafisa records net income of R$20 million in the quarter and a 39%
growth in gross sales.
Inventory sales of R$ 205 million (+39% vs. 4Q23) with SoS of 14% (+5 p.p vs. 4Q23), delivery of 3 projects (PSV of R$401 million), 8% reduction in net debt and 29% reduction in SG&A compared to 1Q23.
Net Income | Gross Sales | Inventory |
R$ 20 million | R$ 205 million | 1.3 billion |
1Q24 | 1Q24 | 1Q24 |
+8% | +39% | -13 p.p. |
1Q24 / 4Q23 | 1Q24 / 4Q23 | 1Q24 / 4Q23 |
TOM Delfim Moreira
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MESSAGE FROM
MANAGEMENT
Earnings Release | 1st Quarterly 2024
MESSAGE FROM MANAGEMENT
In 2024, Gafisa celebrates its 70th anniversary, a milestone in the Company's history, having delivered over 1,200 developments along this journey. It stands as one of the leading companies in the real estate market and a benchmark in real estate development and construction.
This year, the Company solidifies its position in the high-standard segment, refining its land portfolio, developing appropriate financing structures to promote consistent growth in this market, and completing the delivery of TOM Delfim Moreira in Leblon, an art gallery building with the highest valued square meter in the country.
In 2024, besides TOM Delfim Moreira, the Company delivered two other developments, Normandie Moema and High Line Jardins, both in São Paulo, targeting the high and mid-high income segments, respectively. With this, Gafisa totals three deliveries in the first quarter of 2024, with a combined PSV (Potential Sales Value) of R$ 401 million, and eight deliveries in the last 12 months (PSV of R$ 800 million).
In this first quarter, gross inventory sales reached R$ 205 million, an increase of 39% compared to 4Q23. During this period, the sales speed reached a level of 13.6%, 4.7 percentage points above the speed observed in the previous quarter. It is worth noting the high resale speed of canceled units in the first quarter. Of the total canceled units, 78% were resold within the quarter.
The Company remains committed to operational efficiency, both in construction processes and in administrative and commercial processes. In 1Q24, General and Administrative Expenses decreased by 28% compared to 1Q23, while commercial expenses dropped by 32% in the same comparison.
The net income for the quarter was R$ 20 million, an increase of R$ 54 million compared to the same period of the previous year and in line with 4Q23. This result is a consequence of the ongoing and solidification of the high-standard strategy, the focus on operational efficiency, the adjustment of the asset portfolio, and the financing models.
The Company ended 1Q24 with an 8% reduction in net debt compared to 4Q23 and a 10% reduction compared to 1Q23. This reduction is concentrated in project debts, which are paid off as developments are delivered and the receivables portfolio is transferred to financial institutions.
Gafisa concludes the first quarter of 2024 confident in the success of its high-standard positioning strategy and thanks its investors and employees for their trust.
Sheyla Resende CEO
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OPERATIONAL PERFORMANCE
Earnings Release | 1st Quarterly 2024
DELIVERIES
TOM DELFIM MOREIRA
Gafisa delivered TOM Delfim Moreira, the first art gallery building, designed by the international architecture firm Gensler, in the most coveted block of Leblon Rio de Janeiro.
The lobby of the development brings together
artistic expressions from renowned artists: Ernesto Neto, Vik Muniz, the Campana Brothers, Sebastião Salgado, Cláudia Andujar, and Sônia Gomes. It will also feature a sculpture - 'Three Graces' by Iole de Freitas, positioned in front of the building, a delicate gift from Gafisa to the city.
A luxury development that has boosted the real estate market with the highest valued square meter in the country, an exclusivity of only six (6) units, marking a milestone in Gafisa's 70-year history.
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Earnings Release | 1st Quarterly 2024
DELIVERIES
NORMANDIE MOEMA
Normandie Moema is located in the Moema neighborhood, in a unique address framed by all the
charm of Normandia Street.
The area is known for its dynamism, with boutiques, restaurants, shopping, and other services available, all adjacent to Ibirapuera Park. In this context, a contemporary project is born, which values the architecture and sophistication of communal spaces, in addition to a floor plan with large windows offering unique views of the surroundings.
The architecture is signed by Konigsberger Vannucchi, landscaping by Núcleo Arquitetura, and interiors by Carlos Rossi Arquitetura.
HIGH LINE JARDINS
The development is located in the Jardins neighborhood, renowned for its sophistication and modernity, close to Avenida Paulista. A project focused on practicality and comfort, with meticulously designed spaces, offering two (2) well-lit suites, in addition to common areas designed for the well-being of clients and the lifestyle of the region.
The architecture is signed by Jonas Birger, landscaping by Rodrigo Oliveira, and interiors by Triplex Arquitetura.
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Earnings Release | 1st Quarterly 2024
DELIVERIES
In the first quarter of 2024, the Company delivered three projects with a total of 142 units. The projects represent a PSV of R$401 million.
Gafisa has 15 projects in the construction phase to be delivered with a total PSV of more than R$3 billion.
TOM Delfim Moreira | Normandie Moema | High Line Jardins | ||||||||
CLICK ON THE IMAGES TO ACCESS THE DEVELOPMENTS | ||||||||||
Deliveries | TOM Delfim | Normandie | High Line | |||||||
Moreira | Moema | Jardins | ||||||||
Completion of | 1Q24 | 1Q24 | 1Q24 | |||||||
Construction | ||||||||||
Units (#) | 6 | 67 | 69 | |||||||
PSV (R$) | 184 million | 143 million | 74 million | |||||||
Segment | High | High | Mid-High | |||||||
Location | Leblon RJ | Moema - SP | Jardins - SP | |||||||
EVOLUTION OF DELIVERIES
750 | 142 | 200 | ||||||
600 | 80 | 72 | 62 | 150 | ||||
24 | 100 | |||||||
401 | ||||||||
450 | 50 | |||||||
300 | 0 | |||||||
161 | 167 | 167 | -50 | |||||
150 | 64 | -100 | ||||||
-150 | ||||||||
0 | -200 | |||||||
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | ||||
PSV Delivered | Units | |||||||
6 | ||||||||
Earnings Release | 1st Quarterly 2024
OPERATIONAL PERFORMANCE
(R$ thousand)
Operational Performane | 1Q24 | 4Q23 | Q/Q (%) | 1Q23 | Y/Y (%) | 1Q24 LTM | 1Q23 LTM | Y/Y (%) |
Vendas Brutas | 205,466 | 147,606 | 39.2% | 301,533 | -31.9% | 874,105 | 1,103,614 | -20.8% |
Distratos | -34,200 | -30,302 | 12.9% | -16,453 | 107.9% | -155,133 | -161,789 | -4.1% |
Vendas Líquidas | 171,266 | 117,304 | 46.0% | 285,080 | -39.9% | 718,972 | 941,825 | -23.7% |
VSO Bruto (%) | 13,6% | 8,9% | 4.7 p.p | 12.0% | 1.6 p.p | 40.1% | 42.3% | -30.4 p.p |
VGV Entregue | 400,999 | 166,894 | 140.3% | 161,000 | 149.1% | 798,136 | 925,818 | -13.8% |
Estoque | 1,303,853 | 1,502,954 | -13.2% | 2,214,869 | -41.1% | 1,303,853 | 1,502,954 | -13.2% |
São Paulo | 794,852 | 927,097 | -14.3% | 1,537,777 | -48.3% | 794,852 | 927,097 | -14.3% |
Rio de Janeiro | 509,001 | 575,857 | -11.6% | 677,092 | -24.8% | 509,001 | 575,857 | -11.6% |
SALES
Gross sales totaled R$205 million in the first quarter of 2024, an increase of 39% compared to the fourth quarter of 2023. In addition to the increase in sales, the Company achieved a Gross VSO of 13.6% in the quarter, which represents an increase of 4.7 p.p. compared to the previous quarter and an increase of 1.6 p.p. compared to the first quarter of 2023.
700 | 13.6% | 16,0% | |||||||
600 | 12.0% | 13.4% | 14,0% | ||||||
500 | 10.1% | 12,0% | |||||||
8.9% | |||||||||
400 | 10,0% | ||||||||
315 | |||||||||
300 | 302 | 39% | 8,0% | ||||||
206 | 6,0% | ||||||||
200 | 205 | ||||||||
148 | 4,0% | ||||||||
100 | 2,0% | ||||||||
- | 0,0% | ||||||||
1T23 | 2T23 | 3T23 | 4T23 | 1T24 | |||||
Gross Sales (R$ million) | SoS Gross (%) | ||||||||
7 | |||||||||