Cyrela Brazil Rlty S/Adr

Good morning, ladies and gentlemen, and welcome to Cirela Brasil Realty Essay's fourth quarter of 2024 earnings call, or rather first quarter 2024 earnings call. Today with us are Mr. Miguel Mikkelberg, CFO and IRO, and Yuri Kompus, Senior Investor Relations Manager. This call is being recorded and simultaneously translated. You can hear the translation by clicking the interpretation button. To those hearing the English translation, you can mute the original audio in Portuguese by clicking mute original audio. You can also find the slide deck in English on the company's investor relations website at www.ri.sirela.com.br. During the company's presentation, all participants will be in a listen-only mode. After the presentation, we will hold a question and answer session. To ask a question, please click the Q&A button and enter your name and organization. When your name is called, a request will pop up on your screen to unmute your microphone before asking your question. We would like to inform you that any statements that may be made during the call related to Cerela's business perspectives, operating and financial targets are projections made by the company's management that may or may not occur. Investors should understand that political, macroeconomic, and other operating factors may affect the future of the company and lead to results that differ materially from those expressed in such forward-looking statements. To open Cirella's 1Q24 earnings call, I'd like to turn it over to Mr. Miguel Mikkelberg. Mr. Mikkelberg, you may proceed. Good morning, everybody. First, we would like to express our solidarity to those affected by the tragic events in Rio Grande do Sul, a state in which we have been operating for almost 20 years. And it is also my home state where I started my career 17 years ago in Sirela. At this time, we are focused on supporting those impacted by the tragedy and making efforts to contribute to the local community. Our hearts go out to the victims and to the entire population of the state. Cirella posted solid operating results in 1Q24. Although this is a period of lower activity in our sector traditionally, we launched nine projects this year with a total volume of 1.2 billion, a 37% growth year-on-year. We also had a strong sales performance of inventories and launches with a total PSP of 1.6 billion, 43% higher year-on-year. The highlight this quarter was the launch of La Isla project in Rio de Janeiro with 500 million in BSV and excellent performance in its first days of sales. Currently, it is approximately 90% sold. Our financial result was also positive. We reached 1.6 billion in net revenue, 23% more year on year. with a gross margin of 31.4% and a net income of 267,063% above 2023. Net margin was 17% and ROE in the last 12 months exceeded 14% following the trajectory of improvement in our profitability levels. Finally, during the quarter, we observed some deterioration in the macroeconomic scenario, but we are prepared to deliver solid results even in this context. We will follow our philosophy of staying focused on each of our projects and we'll continue to constantly seek greater value generation for our shareholders. Now, Judy will comment on our operating results. Thank you and good morning, everybody. Thank you for participating in our call. On slide four, we will address Rela's launches. In 1Q24, we launched nine products with a PSV of 1.7 billion reals, 26% higher year on year, and 35% lower quarter on quarter. The company stake in the volume launched was 78%. Excluding swaps, the volume launched was 1.2 billion reals in the quarter. On slide five, We highlight the launch of La Isla in the city of Rio de Janeiro with a PSV of 501 million reels. On slide 6, we will talk about our sales performance. In 1Q24, pre-sales came to 2.1 billion, 39% higher year-on-year, and 17% lower quarter-on-quarter. The company's stakes? In the volume, sold in the quarter was 79%, totally 1.7 billion reals in sales in Sorella Stakes. Excluding swap sales in Sorella Stakes came to 1.6 billion reals. On slide 7, we'll address sales speed. The company's SOS in the last 12 months was 50.5%. Looking at sales speed by launch, vintage projects launched in 1Q24 have been 53% sold. On slide eight, we'll talk about our total inventory. At the end of the quarter, inventory at market value totaled 9.5 billion reals, 5% lower quarter on quarter. Inventory totaled 7.1 billion reals in the company's stake. The change in our inventory can be seen in the chart on the left. Slide 9 shows our finished units. In 1Q24, we sold 11% of the finished units at the beginning of the period, adding the inventory of projects delivered along the quarter and pricing of units at market value. Finished units dropped by 11% quarter on quarter, reaching 1.4 billion reals and 1.2 billion reals in Cirella's stake. On slide 10, we can see our delivered units. Cirella delivered six projects in the quarter with a PSV of 676 million reals as of the date of their respective launches. Now let's talk about our financial results. Net revenue came to 1.6 billion reals in the quarter, 23% higher year on year, and 8% lower quarter on quarter. Gross margin in the quarter was 31.4% against 30.7% in 1Q23 and 33.7% in 4Q23.

Now on slide 13, let's take a look at our net income and profitability.

Our net income came to 267 million reals compared to 164 million in 1Q23 and a net income of 248 million in 4Q23. In 1Q24, our return on equity net income over the last 12 months over the average shareholder's equity was 14.5%. On slide 14, let's take a look at our debt. Gross debt at the end of the quarter was 4.8 billion reals. The cash position was 4 billion, thus our net debt was 738 million reals. 83% of the total gross debt is long-term and our net debt over equity ratio was 8.8%. Now, moving towards the end of the presentation, let's take a look at our cash generation. In 1Q24, our cash generation was R$103 million against a cash burn of R$35 million in 1Q23 and a cash burn of R$94 million. in 4Q23. Now we can go to the Q&A session.