OPERATING PREVIEW | 3Q22 |
Belo Horizonte, October 10th, 2022 - Direcional Engenharia S.A., one of the largest homebuilders and real estate development companies in Brazil, focused on the development of low-income and medium-income projects and operating in several regions of the Brazilian Territory, discloses here its operating statements for the third quarter of 2022 (3Q22). Unless otherwise stated, the information in this document is expressed in national currency (Brazilian Reais - R$ or BRL) and the Potential Sales Value ("PSV") demonstrates the consolidated amount (100%).
NOTICE TO THE MARKET
3Q22 OPERATING PREVIEW
- RECORD-BREAKINGIN LAUNCHES IN 3Q22 (BRL 1.2 BILLION), GROWING 50% OVER 2Q22 AND 10% OVER 3Q21.
- BEST QUARTER IN NET SALES IN COMPANY´S HISTORY (BRL 847 MILLION), A 32% GROWTH OVER 3Q21.
- PAYMENT OF DIVIDENDS OF BRL 0.47 PER SHARE IN 3Q22, TOTALING BRL 70 MILLION.
HIGHLIGHTS
- Launches reached BRL 2.6 billionin 9M22, with growth in all segments.
- Net Sales achieved BRL 2.3 billionin 9M22, a 30%growth when compared to 9M21.
- In the last twelve months ended in September (3Q22 LTM), Net Sales totaled BRL 3.0 billion.
- Net Sales Speed ratio (VSO) of 19%in the quarter in the consolidated view and in the Direcional segment.
RIVA
- Net Sales Record in Riva's segment in 3Q22: BRL 326 million, 38%growth over 2Q22 and 3Q21.
- In 9M22, Net Sales reached BRL 733 million, a growth rate of 36%in relation to 9M21.
- Riva's VSO came in at 19%in the quarter, 2 p.p.above 2Q22.
1
OPERATING PREVIEW | 3Q22 |
LAUNCHES
In 3Q22, Direcional Group launched 11 new projects, representing a PSV of BRL 1.2 billion (BRL 967 million % Company), 50% higher than the volume observed in 2Q22. Thus, 3Q22 was the best quarter in Company's history in terms of Launches, surpassing by 10% the previous record, which have been reached in 3Q21.
From total PSV launched in the quarter, the Direcional segment was responsible for 54% of the mix, while Riva products represented 46%.
In the first nine months of 2022 (9M22), PSV launched reached BRL 2.6 billion (BRL 2.2 billion % Company), a 5% growth when compared to 9M21.
Launches | |||||
(PSV 100% - BRL million) | |||||
+5% | |||||
Riva | 2,445 | 2,579 | |||
Direcional | |||||
935 | 1,053 | ||||
+10% | |||||
1,081 | 1,189 | ||||
621 | 790 | 549 | +50% | 1,526 | |
1,509 | |||||
301 | |||||
459 | 490 | 640 | |||
3Q21 | 2Q22 | 3Q22 | 9M21 | 9M22 |
Table below provides further information on projects launched in 3Q22 and 9M22:
Launches | 3Q22 | 2Q22 | 3Q21 | % | % | 9M22 | 9M21 | % | ||||||||||||||||||
(a) | (b) | (c) | (a/b) | (a/c) | (d) | (e) | (d/e) | |||||||||||||||||||
PSV Launched - 100% (BRL '000) | 1,189,068 | 790,369 | 1,080,620 | 50.4% | 10.0% | 2,578,506 | 2,444,603 | 5.5% | ||||||||||||||||||
Direcional | 639,760 | 489,581 | 459,356 | 30.7% | 39.3% | 1,525,786 | 1,509,373 | 1.1% | ||||||||||||||||||
Riva | 549,308 | 300,788 | 621,265 | 82.6% | -11.6% | 1,052,720 | 935,230 | 12.6% | ||||||||||||||||||
PSV Launched - % Company (BRL '000) | 966,707 | 703,651 | 927,228 | 37.4% | 4.3% | 2,227,639 | 2,043,818 | 9.0% | ||||||||||||||||||
Direcional | 556,566 | 467,161 | 459,356 | 19.1% | 21.2% | 1,378,385 | 1,261,981 | 9.2% | ||||||||||||||||||
Riva | 410,141 | 236,490 | 467,872 | 73.4% | -12.3% | 849,254 | 781,837 | 8.6% | ||||||||||||||||||
Launched Units | 4,113 | 3,261 | 3,764 | 26.1% | 9.3% | 10,205 | 10,388 | -1.8% | ||||||||||||||||||
Direcional | 2,711 | 2,436 | 1,800 | 11.3% | 50.6% | 7,283 | 7,194 | 1.2% | ||||||||||||||||||
Riva | 1,402 | 825 | 1,964 | 69.9% | -28.6% | 2,922 | 3,194 | -8.5% | ||||||||||||||||||
Average % Company | 81.3% | 89.0% | 85.8% | -8 p.p. | -5 p.p. | 86.4% | 83.6% | 3 p.p. |
2
OPERATING PREVIEW | 3Q22 |
CONTRACTED SALES
Contracted Net Sales totaled BRL 847 million in 3Q22 (BRL 682 million % Company), growing 32% versus 3Q21. Compared to 2Q22, there was a 1% growth in Net Contracted PSV, setting another record-highin terms of Net Sales for Direcional in 3Q22.
Considering the sales mix in the period, the Direcional segment accounted for BRL 520 million (BRL 450 million % Company), equivalent to 61% of total sales. It is worth noting that in 3Q22, around 60% of the segment's launches took place in the last two weeks of the quarter, thus impacting the sales volume of these products. In turn, the Riva segment was responsible for BRL 326 million (BRL 232 million % Company), that is, 39% of the PSV sold by the Group in 3Q22. This was the best quarter in terms of Net Sales for Riva in the entire history of the segment.
Considering the 9M22, the Group's Net Sales amounted to BRL 2.3 billion (BRL 1.9 billion % Company), a 30% increase when compared to 9M21. In this context, the share of Direcional products in total sales reached 68%, while Riva contributed with 32%, with sales growth in both segments.
Net Sales | Net Sales Track Record | ||||||||||||
(PSV 100% - BRL million) | (PSV 100% - BRL million) | ||||||||||||
Old Harvest | +30% | ||||||||||||
Riva | 2,304 | 2,972 | |||||||||||
3 | |||||||||||||
Direcional | CAGR: | ||||||||||||
1,772 | 733 | +35% | 2,440 | ||||||||||
14 | |||||||||||||
+32% | 537 | 1,680 | |||||||||||
1,451 | |||||||||||||
847 | 1,320 | ||||||||||||
836 | |||||||||||||
643 | 1 | +1% | 1,569 | 914 | |||||||||
236 | |||||||||||||
3 | 326 | 1,221 | |||||||||||
236 | |||||||||||||
494 | |||||||||||||
601 | 520 | ||||||||||||
403 | |||||||||||||
0 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 3Q22 | ||||||
3Q21 | 2Q22 | 3Q22 | 9M21 | 9M22 | |||||||||
LTM | |||||||||||||
Table below presents information about Net Sales in 3Q22 and 9M22:
Contracted Net Sales | 3Q22 | 2Q22 | 3Q21 | % | % | 9M22 | 9M21 | % | ||||||||||||||||||
(a) | (b) | (c) | (a/b) | (a/c) | (d) | (e) | (d/e) | |||||||||||||||||||
Net Contracted Sales - PSV 100% (BRL '000) | 846,855 | 835,691 | 642,716 | 1.3% | 31.8% | 2,304,488 | 1,772,176 | 30.0% | ||||||||||||||||||
Direcional | 520,070 | 600,542 | 402,842 | -13.4% | 29.1% | 1,568,524 | 1,221,317 | 28.4% | ||||||||||||||||||
Riva | 326,044 | 235,603 | 236,459 | 38.4% | 37.9% | 732,873 | 536,996 | 36.5% | ||||||||||||||||||
Old Harvest1 | 741 | -454 | 3,414 | n/a | -78.3% | 3,090 | 13,864 | -77.7% | ||||||||||||||||||
Net Contracted Sales - PSV % Company (BRL '000) | 682,314 | 674,215 | 525,002 | 1.2% | 30.0% | 1,864,519 | 1,479,611 | 26.0% | ||||||||||||||||||
Direcional | 449,950 | 493,738 | 342,509 | -8.9% | 31.4% | 1,315,661 | 1,030,178 | 27.7% | ||||||||||||||||||
Riva | 232,306 | 180,563 | 180,159 | 28.7% | 28.9% | 547,429 | 439,359 | 24.6% | ||||||||||||||||||
Old Harvest | 57 | -86 | 2,334 | n/a | -97.5% | 1,429 | 10,074 | -85.8% | ||||||||||||||||||
Contracted Units | 3,403 | 3,920 | 3,211 | -13.2% | 6.0% | 10,268 | 9,081 | 13.1% | ||||||||||||||||||
Direcional | 2,597 | 3,118 | 2,370 | -16.7% | 9.6% | 8,062 | 7,111 | 13.4% | ||||||||||||||||||
Riva | 804 | 804 | 831 | 0.0% | -3.2% | 2,200 | 1,929 | 14.0% | ||||||||||||||||||
Old Harvest | 2 | -2 | 10 | n/a | -80.0% | 6 | 41 | -85.4% | ||||||||||||||||||
Net Sales Speed (VSO) in PSV | 19% | 20% | 17% | -1 p.p. | 2 p.p. | 39% | 36% | 4 p.p. | ||||||||||||||||||
Direcional | 19% | 23% | 16% | -4 p.p. | 4 p.p. | 43% | 36% | 7 p.p. | ||||||||||||||||||
Riva | 19% | 17% | 21% | 2 p.p. | -2 p.p. | 35% | 38% | -2 p.p. | ||||||||||||||||||
Old Harvest | 2% | 0% | 3% | 2 p.p. | -2 p.p. | 3% | 9% | -6 p.p. |
1 - Old Harvest: Comprises projects of the middle income, upper-middle income and commercial segments, developed in the former model.
3
OPERATING PREVIEW | 3Q22 |
NET SALES SPEED (VSO)
The Net Sales Speed in 3Q22, measured by the VSO index (sales-over-supply ratio), reached 19% in the consolidated view. The reduction of 1 p.p. compared to the previous quarter was mainly due to the significant volume of products launched at the end of 3Q22. The VSO of projects at Direcional, excluding Old Harvest segment, reached 19% in the quarter, as well as the VSO of Riva segment.
Net Sales and VSO
(PSV 100% - BRL million)
23% | ||||||||
21% | 19% | 18% | 20% | 19% | ||||
17% | 17% | 19% | ||||||
16% | 19% | |||||||
17% | 17% | |||||||
16% | ||||||||
14% | ||||||||
4% | 3% | |||||||
3% | 0% | |||||||
2% | ||||||||
Old Harvest Sales | ||||||||
836 | 847 | Riva Sales | ||||||
1 | ||||||||
643 | 668 | 622 | Direcional Sales | |||||
236 | 326 | |||||||
5 | ||||||||
3 | 3 | Direcional VSO | ||||||
239 | 171 | |||||||
236 | Consolidated VSO | |||||||
403 | 423 | 448 | 601 | 520 | Riva VSO | |||
Old Harvest VSO | ||||||||
0 | ||||||||
3Q21 | 4Q21 | 1Q22 | 2Q22 | 3Q22 |
INVENTORY
Direcional ended 3Q22 with 14,386 units in Inventory, adding a PSV of BRL 3.7 billion (BRL 3.1 billion % Company).
Table bellow shows the Inventory at market value, detailed by stage of construction and by the type of product. It is worth mentioning that about 2% of the total PSV refers to completed units, with 1% related to Direcional projects (ex-OldHarvest products).
Total PSV | % Company PSV |
Breakdown of Inventory at | Direcional | Riva | Old Harvest | Total | ||||||||||
Market Value | ||||||||||||||
In progress (BRL million) | 2,200 | 1,427 | 0 | 3,626 | ||||||||||
% Total | 60% | 39% | 0% | 98% | ||||||||||
Completed (BRL million) | 25 | 4 | 38 | 67 | ||||||||||
% Total | 1% | 0% | 1% | 2% | ||||||||||
Total (BRL million) | 2,225 | 1,430 | 38 | 3,693 | ||||||||||
% Total | 60% | 39% | 1% | 100% | ||||||||||
Total Units | 9,994 | 4,270 | 122 | 14,386 | ||||||||||
% Total Units | 69% | 30% | 1% | 100% |
Direcional | Riva | Old Harvest | Total |
1,933 | 1,163 | 0 | 3,097 |
61% | 37% | 0% | 98% |
24 | 3 | 22 | 49 |
1% | 0% | 1% | 2% |
1,957 | 1,167 | 22 | 3,146 |
62% | 37% | 1% | 100% |
9,994 | 4,270 | 122 | 14,386 |
69% | 30% | 1% | 100% |
4
OPERATING PREVIEW | 3Q22 |
LANDBANK
At the end of 3Q22, Direcional's Landbank totaled a development potential of 158,073 units and PSV of BRL 29 billion (BRL 26 billion % Company).
The average cost of acquisition was equivalent to 11% of potential PSV, being that 81% of the payment shall be made through swaps, which causes a reduced impact on the Company's cash position before the beginning of the development of the projects.
During 3Q22, 10 plots of lands were acquired, with a construction potential of more than 5,700 units and a PSV of BRL 1.4 billion (BRL 1.3 billion % Company).
The average cost of acquisition in the quarter was equivalent to 13% of total PSV, and 92% of the payment should be made via swaps.
Evolution of Landbank | 2021 | 9M22 | 9M22 | Adjustments 1 | 9M22 | 9M22 | Units | |||||||||||||
(BRL million) | Landbank | Acquisitions | Launches | Landbank | PSV % Co. | |||||||||||||||
Total PSV | 26,807 | 4,202 | (2,579) | 467 | 28,897 | 26,282 | 158,073 |
1 - Adjustments: update of sales price; canceled sales and swaps.
CASH GENERATION ¹
In 3Q22, Direcional reported a cash consumption of BRL 6 million. As a result, in the year to September period, the cash consumption totaled the amount of BRL 20 million. This result is mainly due to the relevant expansion of works in progress, in addition to the active management of supply inventories, which has proven to be an assertive strategy for maintaining the solidity of the operation profitability. In this sense, it is worth highlighting the anticipation of acquisitions of relevant inputs of our construction process, such as, for example, the aluminum molds acquired in the quarter, which totaled an amount of BRL 31 million.
1 - Cash Generation: variation in net debt adjusted by payment of dividends, repurchase of shares and the variation in the balance of interest swap operation agreements.
DIVIDENDS
Following the already consolidated profile of Direcional as one of the greatest exponents in terms of value generation for shareholders, during 3Q22, the Company paid interim dividends in the amount of BRL 0.47 per share.
In this way, investors who held a shareholding position at the close of trading on July 14, 2022 were entitled to receive the proceeds, which totaled approximately BRL 70 million.
It should be noted that, considering dividends and share buybacks, Direcional has surpassed the BRL 1 billion mark in capital returned to shareholders since its IPO, which took place in 2009.
5
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Direcional Engenharia SA published this content on 10 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 October 2022 22:31:02 UTC.