OPERATING PREVIEW | 3Q21 |
Belo Horizonte, October 14, 2021 - A 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 2021 (3Q21). Unless otherwise expressed, the information in this document is expressed in the national currency (Brazilian Reais - R$ or BRL) and the Potential Sales Value ("PSV") demonstrates the value consolidated (100%).
NOTICE TO THE MARKET
3Q21 OPERATING PREVIEW
- RECORD-BREAKINGIN LAUNCHES IN 3Q21 (BRL 1.1 BILLION), GROWING 88% OVER 3Q20;
- NET SALES RECORD IN 3Q21 (BRL 643 MILLION), A 40% INCREASE VERSUS 3Q20;
- RIVA GREW 281% YoY IN NET SALES IN 3Q20, ACCOUNTING FOR 37% OF GRUPO DIRECIONAL.
HIGHLIGHTS
- Record-highin Launches for the second quarter in a row, +37%over 2Q21.
- Volume launched in the year to September period (9M21) grew 129%in comparison with 9M20, totaling BRL 2.4 billion.
- Net Sales again at the highest level in Direcional's history: 5th record in the last 6 quarters, totaling BRL 643 million.
- In 9M21, Net Sales reached BRL 1.8 billion, a growth rate of 53%versus 9M20.
- Net Sales Speed ratio (VSO) of 17%in the quarter.
RIVA
- Riva's Launches reached BRL 621 millionin 3Q21, the highest level in segment's history.
- 281%growth in Net Sales in comparison with 3Q20 and 33%growth versus 2Q21.
- In 3Q21, Riva's Net Sales accounted for 37%of the total sales by Grupo Direcional.
- Riva's VSO reached 21%in the quarter.
1
OPERATING PREVIEW | 3Q21 |
LAUNCHES
In 3Q21, Direcional launched 10 new projects/phases, totaling a PSV of BRL 1.1 billion (BRL 927 million % Company), an 88% increase versus 3Q20 and a 37% increase over 2Q21, which had been the highest level ever recorded by the Company. Thus,
Direcional hits another record in terms of Launches in a single quarter.
In 9M21, there was a 3-digit growth in comparison with 9M20. The 129% growth in the period contributed to the achievement of a PSV of BRL 2.4 billion in the year to date.
Considering the last twelve months (3T21 LTM), Launches totaled BRL 3.1 billion.
Launches | Launches Track Record | |||||||||||
(PSV 100% - BRL million) | (PSV 100% - BRL million) | |||||||||||
+129% | 3,142 | |||||||||||
2,445 | ||||||||||||
+88% | 935 | 1,905 | 1,946 | 1,763 | ||||||||
1,081 | 1,066 | 1,109 | ||||||||||
787 | 45 | |||||||||||
574 | +37% | 832 | ||||||||||
621 | 1,509 | |||||||||||
188 | 502 | |||||||||||
45 | 1,021 | |||||||||||
599 | ||||||||||||
530 | 459 | |||||||||||
3Q20 | 2Q21 | 3Q21 | 9M20 | 9M21 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 3Q21 | |
LTM | ||||||||||||
Riva | Direcional |
Table below provides further information on projects launched in 3Q21 and 9M21:
3Q21 | 2Q21 | Q3T20 | % | % | |
Launches | |||||
(a) | (b) | (c) | (a/b) | (a/c) | |
PSV Launched - 100% (BRL '000) | 1,080,620 | 786,923 | 574,480 | 37.3% | 88.1% |
Direcional | 459,356 | 599,155 | 529,743 | -23.3% | -13.3% |
Riva | 621,265 | 187,768 | 44,737 | 230.9% | 1288.7% |
PSV Launched - % Company (BRL '000) | 927,228 | 662,361 | 458,127 | 40.0% | 102.4% |
Direcional | 459,356 | 474,593 | 435,758 | -3.2% | 5.4% |
Riva | 467,872 | 187,768 | 22,368 | 149.2% | 1991.7% |
Launched Units | 3,764 | 4,153 | 3,358 | -9.4% | 12.1% |
Direcional | 1,800 | 3,385 | 3,142 | -46.8% | -42.7% |
Riva | 1,964 | 768 | 216 | 155.7% | 809.3% |
Average % Company | 85.8% | 84.2% | 79.7% | 2 p.p. | 6 p.p. |
Average Price (BRL/unit) | 287,094 | 189,483 | 171,078 | 51.5% | 67.8% |
Direcional | 255,198 | 177,003 | 168,601 | 44.2% | 51.4% |
Riva | 316,326 | 244,490 | 207,115 | 29.4% | 52.7% |
9M21 | 9M20 | % |
(d) | (e) | (d/e) |
2,444,603 | 1,065,543 | 129.4% |
1,509,373 | 1,020,807 | 47.9% |
935,230 | 44,737 | 1990.5% |
2,043,818 | 876,337 | 133.2% |
1,261,981 | 853,969 | 47.8% |
781,837 | 22,368 | 3395.3% |
10,388 | 6,342 | 63.8% |
7,194 | 6,126 | 17.4% |
3,194 | 216 | 1378.7% |
83.6% | 82.2% | 1 p.p. |
235,330 | 168,014 | 40.1% |
209,810 | 166,635 | 25.9% |
292,808 | 207,115 | 41.4% |
2
OPERATING PREVIEW | 3Q21 |
CONTRACTED NET SALES
Contracted Net Sales reached a PSV of BRL 643 million (BRL 525 million % Company) in 3Q21, a growth rate of 40% when compared to 3Q20, and 5% when compared to 2Q21. Once again, Direcional set its best quarter in terms of Net Sales - the 5th record in the last 6 quarters.
As has been happening in recent quarters, Riva's relevant role in sales volume stands out. In 3Q21, it accounted for 37% of the total sold by Grupo Direcional.
In 9M21, Net Sales totaled BRL 1.8 billion, a 53% growth in comparison with the total amount of 9M20.
Net Sales | Net Sales Track Record | ||||||||||||
(PSV 100% - BRL million) | (PSV 100% - BRL million) | ||||||||||||
+53% | |||||||||||||
1,772 | 614 | 643 | |||||||||||
14 | |||||||||||||
537 | 523 | 515 | |||||||||||
1,158 | 458 | ||||||||||||
184 7 | |||||||||||||
+40% | 386 | 401 | |||||||||||
336 | 371 | ||||||||||||
614 | 643 | 326 | 298 | ||||||||||
271 | 287 | ||||||||||||
3 | +5% | ||||||||||||
458 | 178 3 | 1,221 | |||||||||||
236 | 966 | ||||||||||||
62 | 3 | ||||||||||||
393 | 433 | 403 | |||||||||||
3Q20 | 2Q21 | 3Q21 | 9M20 | 9M21 | 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 | ||||||||
Old Harvest | Riva | Direcional |
Table below consolidates the information on contracted Net Sales in 3Q21 and 9M21:
Contracted Net Sales
PSV Contracted Net Sales - 100% (BRL '000)
3Q21 | 2Q21 | 3Q20 | % |
(a) | (b) | (c) | (a/b) |
642,716 | 614,496 | 458,407 | 4.6% |
% | 9M21 | 9M20 | % |
(a/c) | (d) | (e) | (d/e) |
40.2% | 1,772,176 | 1,157,552 | 53.1% |
Direcional | 402,842 | 433,406 | 393,027 | -7.1% | 2.5% | 1,221,317 | 966,195 | 26.4% |
Riva | 236,459 | 178,387 | 62,133 | 32.6% | 280.6% | 536,996 | 184,105 | 191.7% |
Old Harvest1 | 3,414 | 2,703 | 3,247 | 26.3% | 5.2% | 13,864 | 7,252 | 91.2% |
PSV Contracted Net Sales - % Company (BRL '000) | 525,002 | 515,665 | 368,944 | 1.8% | 42.3% | 1,479,611 | 961,015 | 54.0% |
Direcional | 342,509 | 364,201 | 312,154 | -6.0% | 9.7% | 1,030,178 | 791,516 | 30.2% |
Riva | 180,159 | 149,183 | 55,234 | 20.8% | 226.2% | 439,359 | 165,920 | 164.8% |
Old Harvest | 2,334 | 2,281 | 1,556 | 2.3% | 50.1% | 10,074 | 3,579 | 181.5% |
Contracted Units | 3,211 | 3,168 | 2,457 | 1.4% | 30.7% | 9,081 | 6,312 | 43.9% |
Direcional | 2,370 | 2,491 | 2,224 | -4.9% | 6.6% | 7,111 | 5,568 | 27.7% |
Riva | 831 | 668 | 215 | 24.4% | 286.5% | 1,929 | 719 | 168.3% |
Old Harvest | 10 | 9 | 18 | 11.1% | -44.4% | 41 | 25 | 64.0% |
VSO in PSV | 17% | 18% | 16% | -1 p.p. | 1 p.p. | 36% | 33% | 3 p.p. |
Direcional | 16% | 17% | 18% | -1 p.p. | -2 p.p. | 36% | 35% | 1 p.p. |
Riva | 21% | 26% | 15% | -5 p.p. | 6 p.p. | 38% | 33% | 4 p.p. |
Old Harvest | 3% | 2% | 2% | 1 p.p. | 1 p.p. | 9% | 4% | 5 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 | 3Q21 |
NET SALES SPEED (VSO)
Net Sales Speed, measured by the VSO index (sales-over-supply ratio), reached 17% in 3Q21. The VSO of projects at Direcional, excluding Old Harvest segment, reached 17% in the quarter. The VSO of Riva segment reached 21% in the same period.
Net Sales and VSO | ||||||
(PSV 100% - BRL million) | ||||||
26% | ||||||
18% | 20% | 18% | 21% | |||
18% | 17% | |||||
17% | ||||||
17% | ||||||
16% | ||||||
17% | 17% | |||||
16% | 16% | |||||
15% | ||||||
9% | ||||||
5% | 3% | |||||
2% | 2% | |||||
643 | Old Harvest Sales | |||||
614 | Riva Sales | |||||
3 | ||||||
523 | 3 | |||||
515 | ||||||
458 | Direcional Sales | |||||
178 | 236 | |||||
16 | 8 | |||||
62 | 3 | 95 | 122 | Direcional VSO | ||
Consolidated VSO | ||||||
393 | 412 | 385 | 433 | 403 | Riva VSO | |
Old Harvest VSO | ||||||
3Q20 | 4Q20 | 1Q21 | 2Q21 | 3Q21 |
INVENTORY
Direcional ended 3Q21 with 14,573 units in Inventory, totaling a PSV of BRL 3.2 billion (BRL 2.7 billion % Company).
Table below shows the Inventory at market value, detailed by stage of construction and by type of product. It is worth mentioning that there are only BRL 9 million in PSV of Direcional (ex-Old Harvest) completed units, representing less than 1% of total Inventory.
PSV Total | PSV % Company | ||||||||||||||||||||||||||
Breakdown of Inventory at | Direcional | Riva | Old Harvest | Total | Direcional | Riva | Old Harvest | Total | |||||||||||||||||||
Market Value | |||||||||||||||||||||||||||
In progress (BRL million) | 2,157 | 891 | 1 | 3,049 | 1,890 | 694 | 1 | 2,585 | |||||||||||||||||||
% Total | 68% | 28% | 0% | 96% | 70% | 26% | 0% | 96% | |||||||||||||||||||
Completed (BRL million) | 9 | 5 | 116 | 129 | 8 | 4 | 89 | 102 | |||||||||||||||||||
% Total | 0% | 0% | 4% | 4% | 0% | 0% | 3% | 4% | |||||||||||||||||||
Total (BRL million) | 2,166 | 896 | 116 | 3,178 | 1,898 | 698 | 90 | 2,686 | |||||||||||||||||||
% Total | 68% | 28% | 4% | 100% | 71% | 26% | 3% | 100% | |||||||||||||||||||
Total Units | 11,128 | 3,124 | 321 | 14,573 | 11,128 | 3,124 | 321 | 14,573 | |||||||||||||||||||
% Total Units | 76% | 21% | 2% | 100% | 76% | 21% | 2% | 100% |
4
OPERATING PREVIEW | 3Q21 |
LANDBANK
In 3Q21, 13 plots of lands were acquired, with a construction potential of 7,831 units and a PSV of BRL 1.7 billion (BRL 1.7 billion % Company).
The average cost of acquisition was equivalent to 13% of PSV, and 69% of the payment shall be made via swaps, which causes a reduced impact on the Company's cash position in the short term. It is important to mention that approximately BRL 627 million of the landbank acquired in 3Q21 is intended to Riva projects.
In 9M21, land acquisitions totaled a PSV of BRL 4.8 billion (BRL 4.6 billion % Company), with an average cost of 13% of the PSV, and with 72% of the payment to be made through swaps.
Direcional landbank ended 3Q21 with a development potential of 151 thousand units and a PSV of BRL 27 billion (BRL 25 billion % Company).
CASH GENERATION (CASH BURN) ¹
In 3Q21, there was a cash burn in the amount of BRL 23 million. In the last twelve months ended in 3Q21, there was a total cash generation of BRL 26 million.
It should be noted that the cash burn observed is due to the significant operational growth that the Company has been reporting, leading to a considerable expansion in the volume of launches, which more than doubled in 9M21 in comparison with 9M20.
In addition, we also highlight the importance of the strategy of anticipating the purchase of inputs before price increases, with the objective of mitigating most of the effects of the inflationary pressure that has been occurring in the country in recent quarters. This decision was crucial for maintaining the resilience of the Gross Margin that the Company has reported in the period.
Cash Generation by Quarter | Cash Generation by Year |
(R$ million) | (R$ million) |
63 | ||||||||||||
362 | ||||||||||||
15 | ||||||||||||
76 | 158 | 167 | 146 | |||||||||
-29 | -23 | 53 | 38 | 26 | ||||||||
-71 | ||||||||||||
4Q20 | 1Q21 | 2Q21 | 3Q21 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 3Q21 |
LTM |
1 Cash Generation (Cash Burn): variation in net debt adjusted by payment of dividends, repurchase of shares and the variation in the balance of interest swap operation agreements. Prior unaudited information.
5
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Direcional Engenharia SA published this content on 14 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 October 2021 21:21:09 UTC.