OPERATING PREVIEW | 4Q21 |
Belo Horizonte, January 19, 2022 - 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 fourth quarter of 2021 (4Q21). 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
4Q21 AND 2021 OPERATING PREVIEW
- RECORD-HIGHLAUNCHES IN 2021 (BRL 3.1 BILLION), GROWING 78% VERSUS 2020;
- NET SALES RECORD IN 2021 (BRL 2.4 BILLION), A 45% INCREASE OVER 2020;
- RIVA'S BEST QUARTER IN NET SALES (BRL 239 MILLION), GROWING 152% VERSUS 4Q20.
HIGHLIGHTS
- Launches reached BRL 693 millionin the quarter and BRL 3.1 billionin the year: the highest annual level ever achieved in Company's history.
- Net Sales of BRL 668 millionin 4Q21, setting new all-time high: the 6th record in the last 7 quarters.
- In 2021, Net Sales reached BRL 2.4 billion, a growth rate of 45%versus 2020.
- Net Sales Speed ratio (VSO) of 17%in the quarter.
RIVA
- Riva's Launches reached BRL 358 millionin 4Q21, a 54%growth relative to 4Q20.
- In 2021, Launches totaled BRL 1.3 billion, growing 368%versus 2020.
- Net Sales of BRL 776 millionin 2021, up 178%on an annual basis.
- Riva's VSO reached 19%in the quarter.
1
OPERATING PREVIEW | 4Q21 |
LAUNCHES
In 4Q21, Direcional launched 10 new projects, totaling a PSV of BRL 693 million (BRL 634 million % Company), in line with the figures of 4Q20 and 36% below 3Q21 levels. The mix of launches came in well-balanced in the quarter, with Riva representing a little more than half of the launched PSV.
The total volume launched in 2021 reached the unparalleled level of BRL 3.1 billion, establishing a 78% growth related to 2020. Thus, the Company recorded the highest level in its history in this key metric, reporting important growth on an annual basis both in Direcional products (+24%) and in Riva products (+368%).
Launches | Launches Track Record | |||||||||||
(PSV 100% - BRL million) | (PSV 100% - BRL million) | |||||||||||
+78% | 3,138 | |||||||||||
3,138 | ||||||||||||
1,293 | 1,905 | 1,946 | 1,763 | |||||||||
-1% | 1,763 | |||||||||||
276 | ||||||||||||
1,109 | ||||||||||||
1,081 | ||||||||||||
832 | ||||||||||||
697 | 693 | -36% | 1,845 | |||||||||
621 | 1,487 | 502 | ||||||||||
231 | 358 | |||||||||||
466 | 459 | |||||||||||
336 | ||||||||||||
4Q20 | 3Q21 | 4Q21 | 2020 | 2021 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | |
Riva | Direcional |
Table below provides further information on projects launched in 4Q21 and 2021:
Launches | 4Q21 | 3Q21 | 4Q20 | % | % | 2021 | 2020 | % |
(a) | (b) | (c) | (a/b) | (a/c) | (d) | (e) | (d/e) | |
PSV Launched - 100% (BRL '000) | 693,381 | 1,080,620 | 697,307 | -35.8% | -0.6% | 3,137,984 | 1,762,850 | 78.0% |
Direcional | 335,827 | 459,356 | 465,813 | -26.9% | -27.9% | 1,845,200 | 1,486,620 | 24.1% |
Riva | 357,554 | 621,265 | 231,494 | -42.4% | 54.5% | 1,292,784 | 276,231 | 368.0% |
PSV Launched - % Company (BRL '000) | 633,817 | 927,228 | 650,259 | -31.6% | -2.5% | 2,677,635 | 1,526,597 | 75.4% |
Direcional | 335,827 | 459,356 | 418,765 | -26.9% | -19.8% | 1,597,807 | 1,272,734 | 25.5% |
Riva | 297,990 | 467,872 | 231,494 | -36.3% | 28.7% | 1,079,827 | 253,862 | 325.4% |
Launched Units | 3,146 | 3,764 | 3,701 | -16.4% | -15.0% | 13,534 | 10,043 | 34.8% |
Direcional | 1,909 | 1,800 | 2,749 | 6.1% | -30.6% | 9,103 | 8,875 | 2.6% |
Riva | 1,237 | 1,964 | 952 | -37.0% | 29.9% | 4,431 | 1,168 | 279.4% |
Average % Company | 91.4% | 85.8% | 93.3% | 6 p.p. | -2 p.p. | 85.3% | 86.6% | -1 p.p. |
Average Price (BRL/unit) | 220,401 | 287,094 | 188,410 | -23.2% | 17.0% | 231,859 | 175,530 | 32.1% |
Direcional | 175,918 | 255,198 | 169,448 | -31.1% | 3.8% | 202,702 | 167,506 | 21.0% |
Riva | 289,049 | 316,326 | 243,166 | -8.6% | 18.9% | 291,759 | 236,499 | 23.4% |
2
OPERATING PREVIEW | 4Q21 |
CONTRACTED NET SALES
Contracted Net Sales totaled a PSV of BRL 668 million (BRL 538 million % Company) in 4Q21, up 28% from the year-ago quarter, and up 4% when compared to 3Q21. Once again, Direcional set its best quarter in terms of Net Sales - the 6th record in the last 7 quarters.
In 2021, Net Sales reached BRL 2.4 billion, a 45% growth relative to the contracted PSV of 2020. This level marks 2021 as the Company's best year in terms of Net Sales.
It is worth mentioning the role played by Riva in the sales mix, reporting an increase of 178% year-over-year and contributing significantly to the numbers achieved.
Net Sales | Net Sales Track Record | |||||||||||||||
(PSV 100% - BRL million) | (PSV 100% - BRL million) | |||||||||||||||
+45% | ||||||||||||||||
2,440 | 643 | 668 | ||||||||||||||
19 | ||||||||||||||||
614 | ||||||||||||||||
1,680 | 776 | 523 | 515 | |||||||||||||
23 | 458 | |||||||||||||||
279 | 401 | |||||||||||||||
371 | ||||||||||||||||
+28% | 336 | 326 | ||||||||||||||
298 | ||||||||||||||||
287 | ||||||||||||||||
643 | 668 | 1,645 | ||||||||||||||
523 | 1,378 | |||||||||||||||
3 | 239 | 5 | +4% | |||||||||||||
95 | 16 | 236 | ||||||||||||||
412 | 403 | 423 | ||||||||||||||
4Q20 | 3Q21 | 4Q21 | 2020 | 2021 | 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 | |||||||||||
Old Harvest | Riva | Direcional |
Table below consolidates the information on contracted Net Sales in 4Q21 and 2021:
Contracted Net Sales | 4Q21 | 3Q21 | 4Q20 | % | % | 2021 | 2020 | % |
(a) | (b) | (c) | (a/b) | (a/c) | (d) | (e) | (d/e) | |
PSV Contracted Net Sales - 100% (BRL '000) | 667,758 | 642,716 | 522,749 | 3.9% | 27.7% | 2,439,934 | 1,680,302 | 45.2% |
Direcional | 423,415 | 402,842 | 412,117 | 5.1% | 2.7% | 1,644,732 | 1,378,312 | 19.3% |
Riva | 239,152 | 236,459 | 94,723 | 1.1% | 152.5% | 776,149 | 278,829 | 178.4% |
Old Harvest1 | 5,190 | 3,414 | 15,909 | 52.0% | -67.4% | 19,054 | 23,161 | -17.7% |
PSV Contracted Net Sales - % Company (BRL '000) | 537,662 | 525,002 | 446,741 | 2.4% | 20.4% | 2,017,273 | 1,407,756 | 43.3% |
Direcional | 358,639 | 342,509 | 352,909 | 4.7% | 1.6% | 1,388,816 | 1,144,424 | 21.4% |
Riva | 175,889 | 180,159 | 83,158 | -2.4% | 111.5% | 615,248 | 249,078 | 147.0% |
Old Harvest | 3,135 | 2,334 | 10,675 | 34.3% | -70.6% | 13,209 | 14,254 | -7.3% |
Contracted Units | 3,146 | 3,211 | 2,749 | -2.0% | 14.4% | 12,227 | 9,061 | 34.9% |
Direcional | 2,318 | 2,370 | 2,401 | -2.2% | -3.5% | 9,429 | 7,969 | 18.3% |
Riva | 813 | 831 | 303 | -2.2% | 168.3% | 2,742 | 1,022 | 168.3% |
Old Harvest | 15 | 10 | 45 | 50.0% | -66.7% | 56 | 70 | -20.0% |
VSO in PSV | 17% | 17% | 17% | 0 p.p. | 0 p.p. | 43% | 40% | 3 p.p. |
Direcional | 17% | 16% | 18% | 1 p.p. | -1 p.p. | 44% | 43% | 2 p.p. |
Riva | 19% | 21% | 16% | -2 p.p. | 3 p.p. | 43% | 36% | 8 p.p. |
Old Harvest | 4% | 3% | 9% | 1 p.p. | -4 p.p. | 12% | 12% | 0 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 | 4Q21 |
NET SALES SPEED (VSO)
In 4Q21, Net Sales Speed, measured by the VSO index (sales-over-supply ratio), reached 17%. The VSO of projects at Direcional, excluding Old Harvest segment, also reached 17% in the quarter. The VSO of Riva segment reached 19% in the same period.
Net Sales and VSO | |||||
(PSV 100% - BRL million) | |||||
26% | |||||
18% | 20% | 18% | 21% | 19% | |
17% | 17% | ||||
17% | 17% | ||||
17% | 17% | ||||
16% | 16% | 17% | |||
Old Harvest Sales | |||||
9% | Riva Sales | ||||
5% | 2% | 3% | 4% | Direcional Sales | |
Direcional VSO | |||||
614 | 643 | 668 | Consolidated VSO | ||
5 | |||||
3 | |||||
523 | 515 | 3 | Riva VSO | ||
239 | |||||
178 | 236 | ||||
16 | 8 | Old Harvest VSO | |||
95 | 122 | ||||
412 | 385 | 433 | 403 | 423 | |
4Q20 | 1Q21 | 2Q21 | 3Q21 | 4Q21 |
INVENTORY
Direcional ended 4Q21 with 14,627 units in Inventory, totaling a PSV of BRL 3.3 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 only 5% of the total PSV refers to completed units, with 2% related to Direcional projects (ex-OldHarvest), and less than 1% related to Riva products.
PSV Total | PSV % Company | ||||||||||||||||||||||||||
Breakdown of Inventory at | Direcional | Riva | Old Harvest | Total | Direcional | Riva | Old Harvest | Total | |||||||||||||||||||
Market Value | |||||||||||||||||||||||||||
In progress (BRL million) | 2,063 | 1,031 | 0 | 3,094 | 1,737 | 787 | 0 | 2,523 | |||||||||||||||||||
% Total | 63% | 32% | 0% | 95% | 65% | 30% | 0% | 95% | |||||||||||||||||||
Completed (BRL million) | 49 | 3 | 110 | 163 | 43 | 3 | 93 | 139 | |||||||||||||||||||
% Total | 2% | 0% | 3% | 5% | 2% | 0% | 4% | 5% | |||||||||||||||||||
Total (BRL million) | 2,113 | 1,034 | 110 | 3,257 | 1,779 | 790 | 93 | 2,662 | |||||||||||||||||||
% Total | 65% | 32% | 3% | 100% | 67% | 30% | 4% | 100% | |||||||||||||||||||
Total Units | 10,772 | 3,548 | 307 | 14,627 | 10,772 | 3,548 | 307 | 14,627 | |||||||||||||||||||
% Total Units | 74% | 24% | 2% | 100% | 74% | 24% | 2% | 100% |
4
OPERATING PREVIEW | 4Q21 |
LANDBANK
During 4Q21, 18 plots of lands were acquired, with a construction potential of 8,115 units and a PSV of BRL 1.9 billion (BRL 1.7 billion % Company).
The average cost of acquisition in the quarter was equivalent to 12% of PSV, and 83% of the payment shall be made via swaps, which causes a reduced impact on the Company's cash position in the short term.
In 2021, land acquisitions totaled a PSV of BRL 6.8 billion (BRL 6.3 billion % Company), with an average cost of 13% of the PSV, and with 75% of the payment to be made through swaps.
Direcional's landbank ended 4Q21 with a development potential of 152 thousand units and a PSV of BRL 27 billion (BRL 25 billion % Company).
CASH GENERATION (CASH BURN) ¹
In 4Q21, there was a cash generation in the amount of BRL 18 million. As a result, in 2021, the Company reported a cash burn of BRL 19 million.
As discussed in previous releases, the cash burn observed is due to the significant operational growth that the Company has been reporting throughout the year, which allowed an important expansion in the volume of launches, and whose growth rate reached expressive 78% in the comparison between 2021 and 2020.
In addition, the strategy of anticipating the purchase of inputs before price increases, adopted by the Company in the first quarters of the year, aiming the reduction of most of the inflationary effects, as well as the maintenance of solid levels of gross margin, also contributed to this result.
It is worth noting that Direcional reduced its leverage by BRL 69 million in 4Q21, of which BRL 18 million in cash generation and another BRL 51 million through the sale of treasury shares and the subsequent contracting of a swap indexed to shares issued by the Company, in an equivalent position, within the scope of the share buyback program, approved in December 2021 and valid for 18 months, according to the Material Fact disclosed on the date.
Cash Generation by Quarter | Cash Generation by Year | ||||||||||||
(BRL million) | (BRL million) | ||||||||||||
69 | |||||||||||||
51 | |||||||||||||
362 | |||||||||||||
15 | 18 | 158 | 167 | 146 | |||||||||
76 | |||||||||||||
-23 | 53 | 38 | |||||||||||
-29 | |||||||||||||
-71 | -19 | ||||||||||||
1Q21 | 2Q21 | 3Q21 | 4Q21 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 |
Treasury Shares Operation / Swap
Cash Generation
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 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 23:45:05 UTC.