DIRECIONAL ENGENHARIA S.A. OPERATING PREVIEW | 4Q22 |
Belo Horizonte, January 12th, 2023 - 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
4Q22 OPERATING PREVIEW
- RECORD-HIGHLAUNCHES IN 2022 (BRL 3.6 BILLION), GROWING 16% VERSUS 2021.
- NET SALES RECORD IN 2022 (BRL 3.0 BILLION), AN INCREASE OF 23% OVER 2021
- CASH GENERATION OF BRL 93 MILLION IN THE QUARTER
- PAYMENT OF DIVIDENDS OF BRL 0.70 PER SHARE IN 4Q22, REPRESENTING BRL 104 MILLION AND TOTALING BRL 174 MILLION IN 2022, 10% OF DIVIDEND YIELD IN 2022¹
HIGHLIGHTS
- Launches reached BRL 1.1 billionin 4Q22, a 53% growth versus 4Q21.
- Contracted net sales of BRL 694 millionin 4Q22, a growth rate of 4%versus 4Q21.
- Cash Generation of BRL 73 millionin 2022.
- Riva's Launches reached BRL 1.4 billionin 2022, a 8%growth relative to 2021
- Net Sales in Riva's segment reached BRL 940 millionin 2022, a 21%growth relative to 2021
1- The calculation of the dividend yield considers the quotation on 12/30/2021
1
OPERATING PREVIEW | 4Q22 |
LAUNCHES
In 2022, the total PSV launched by the Company reached the mark of BRL 3.6 billion (BRL 3.1 billion % of the Company), a growth of 16% when compared to the year of 2021. Thus, Direcional reached the highest level in its history in this key metric.
The Company launched 11 new projects in 4Q22, representing a PSV of BRL 1.1 billion (BRL 896 million % Company), 53% above the amount launched in 4Q21 and 11% below 3Q22. The representativeness of Direcional's products in the mix of launches reached 67%, while Riva's represented 33% of launched PSV.
Launches | Launches Track Record |
(PSV 100% - BRL million)
+16%
(PSV 100% - BRL million)
3,636
693
358
336
+53%
1,189 1,058
- 348
- 710
-11%
3,138
1,293
1,845
3,636
1,401
2,236
3,138
+33%
1,905 1,946 1,763
1,109
832
502
4T21 | 3T22 | 4T22 | 2021 | 2022 |
Riva Direcional
2015 2016 2017 2018 2019 2020 2021 2022
The table below provides further information on projects launched in 4Q22 and 2022:
Launches
PSV Launched - 100% (BRL '000)
Direcional
Riva
PSV Launched - % Company (BRL '000)
Direcional
Riva
Launched Units
Direcional
Riva
Average % Company
4Q22 | 3Q22 | 4Q21 |
(a) | (b) | (c) |
1,057,713 | 1,189,068 | 693,381 |
709,849 639,760 335,827
347,864 549,308 357,554
896,097 | 966,707 | 633,817 |
651,342 | 556,566 | 335,827 |
244,756 | 410,141 | 297,990 |
4,320 | 4,113 | 3,146 |
3,504 | 2,711 | 1,909 |
816 | 1,402 | 1,237 |
84.7% | 81.3% | 91.4% |
- %
(a/b)
-11.0%11.0% -36.7%
-7.3%17.0% -40.3%
5.0%
29.3% -41.8% 3 p.p.
Δ % | 2022 | 2021 |
(a/c) | (d) | (e) |
52.5% | 3,636,219 | 3,137,984 |
111.4% 2,235,635 1,845,200 -2.7% 1,400,584 1,292,784
41.4% | 3,123,737 | 2,677,635 |
94.0% | 2,029,727 | 1,597,807 |
-17.9% | 1,094,010 | 1,079,827 |
37.3% | 14,525 | 13,534 |
83.6% | 10,787 | 9,103 |
-34.0% | 3,738 | 4,431 |
-7 p.p. | 85.9% | 85.3% |
- %
(d/e)
15.9%
21.2%
8.3%
16.7%
27.0%
1.3%
7.3%
18.5% -15.6% 1 p.p.
2
OPERATING PREVIEW | 4Q22 |
CONTRACTED SALES
In 2022, Contracted Net Sales totaled a PSV of BRL 3.0 billion (BRL 2.4 billion % Company), a growth of 23% compared to the net PSV contracted in 2021. Once again, Direcional set its best year in terms of Net Sales in the history.
In 4Q22, Net Sales reached BRL 694 million (BRL 551 million % Company), representing a 4% increase over 4Q21 and an 18% decrease over 3Q22. It is worth noting that the Brazilian elections and the World Cup took place throughout the 4Q22, events that had a significant impact on sales in the period. The first half of the quarter presented smaller numbers when compared to the average of the rest of year. It was possible to notice a significant increase in sales after those events, that returned to normal levels and December was the best month of the quarter in terms of sales, even considering the seasonal effects of this month usually impacted by the festive period and year-end holidays. It is worth highlighting, as an example, that considering only the period from December 15th, sales totaled BRL 209 million.
Considering the sales mix in the period, the Direcional segment accounted for BRL 489 million (BRL 398 million % Company), equivalent a 70% of total sales. Riva's segment was responsible for BRL 207 million (BRL 154 million % Company), 30% of the PSV sold by the Group in 4Q22.
Net Sales
(PSV 100% - BRL million)
Net Sales Track Record
(PSV 100% - BRL million)
Old Harvest
Riva
Direcional
+4% | ||||||||||
847 | ||||||||||
668 | 694 | |||||||||
1 | ||||||||||
5 | 326 | 207 | ||||||||
239 | ||||||||||
520 | ||||||||||
423 | 489 | |||||||||
-2 | ||||||||||
+23% | ||||||
2,999 | ||||||
1 | ||||||
2,440 | 940 | |||||
19 | ||||||
776 |
2,058
-18% | 1,645 |
914
494
2,999
CAGR:
2,440
+35%
1,680
1,451 1,320
4Q21 | 3Q22 | 4Q22 |
2021 2022
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
The table below consolidates the information on contracted Net Sales in 4Q22 and 2022:
Contracted Net Sales | 4Q22 | ||
Net Contracted Sales - PSV 100% (BRL '000) | 694,368 | ||
Direcional | 489,274 | ||
Riva | 206,721 | ||
Old Harvest1 | -1,627 | ||
Net Contracted Sales - PSV % Company (BRL '000) | 551,492 |
3Q22
846,855
520,070
326,044
741
682,314
4Q21 | Δ % | ||
667,758 | -18.0% | ||
423,415 | -5.9% | ||
239,152 | -36.6% | ||
5,190 | -319.6% | ||
537,662 | -19.2% |
Δ %
4.0%
15.6% -13.6%-131.3%
2.6%
2022
2,998,856
2,057,798
939,594
1,464
2,416,011
2021 | Δ % | ||
2,439,934 | 22.9% | ||
1,644,732 | 25.1% | ||
776,149 | 21.1% | ||
19,054 | -92.3% | ||
2,017,273 | 19.8% |
Direcional | 397,573 | 449,950 | 358,639 | -11.6% | 10.9% | 1,713,234 | 1,388,816 | 23.4% |
Riva | 153,924 | 232,306 | 175,889 | -33.7% | -12.5% | 701,353 | 615,248 | 14.0% |
Old Harvest | -5 | 57 | 3,135 | -108.5% | -100.2% | 1,424 | 13,209 | -89.2% |
Contracted Units | 2,899 | 3,403 | 3,146 | -14.8% | -7.9% | 13,167 | 12,227 | 7.7% |
Direcional | 2,315 | 2,597 | 2,318 | -10.9% | -0.1% | 10,377 | 9,429 | 10.1% |
Riva | 586 | 804 | 813 | -27.1% | -27.9% | 2,786 | 2,742 | 1.6% |
Old Harvest | -2 | 2 | 15 | -200.0% | -113.3% | 4 | 56 | -92.9% |
Net Sales Speed (VSO) in PSV
15%
19%
17%
-4 p.p.
-3 p.p.
44%
43%
0 p.p.
Direcional | 17% | 19% | 17% | -3 p.p. | 0 p.p. | 47% | 44% | 3 p.p. |
Riva | 12% | 19% | 19% | -7 p.p. | -7 p.p. | 39% | 43% | -5 p.p. |
Old Harvest | -4% | 2% | 4% | -6 p.p. | -9 p.p. | 1% | 12% | -11 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 | 4Q22 |
NET SALES SPEED (VSO)
The Net Sales Speed in 4Q22, measured by the VSO index (sales-over-supply ratio), reached 15% in the consolidated view. The reduction of 4 p.p. compared to the previous quarter was mainly impacted by the elections and the World Cup during the quarter. The VSO of projects at Direcional, excluding Old Harvest segment, also reached 17% in the quarter. The VSO of Riva segment reached 12% in the same period.
19%
17%
17%
4%
668
5
239
423
18%
16%
14%
3%
622
171 3
448
Net Sales and VSO
(PSV 100% - BRL million)
23%
20%
17%
0%
836
236
601
0
19%
19%
19%
2%
847
1
326
520
17%
15% | ||||||
12% | ||||||
-3% | Old Harvest Sales | |||||
Riva Sales | ||||||
694 | Direcional Sales | |||||
207 | Direcional VSO | |||||
Consolidated VSO | ||||||
489 | Riva VSO | |||||
Old Harvest VSO | ||||||
-2 | ||||||
4Q21 | 1Q22 | 2Q22 | 3Q22 |
4Q22 |
INVENTORY
Direcional ended 4Q22 with 15,905 units in Inventory, adding a PSV of BRL 4.2 billion (BRL 3.4 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) | 2,492 | 1,623 | 0 | 4,115 | ||||||||||
% Total | 59% | 38% | 0% | 97% | ||||||||||
Completed (BRL million) | 60 | 2 | 26 | 88 | ||||||||||
% Total | 1% | 0% | 2% | 2% | ||||||||||
Total (BRL million) | 2,551 | 1,625 | 70 | 4,203 | ||||||||||
% Total | 60% | 38% | 2% | 100% | ||||||||||
Total Units | 11,190 | 4,500 | 90 | 15,780 | ||||||||||
% Total Units | 70% | 28% | 1% | 100% |
Direcional | Riva | Old Harvest | Total |
2,062 | 1,297 | 0 | 3,359 |
59% | 37% | 0% | 97% |
58 | 2 | 11 | 72 |
2% | 0% | 2% | 2% |
2,121 | 1,298 | 11 | 3,430 |
61% | 37% | 2% | 100% |
11,190 | 4,500 | 90 | 15,780 |
70% | 28% | 1% | 100% |
4
OPERATING PREVIEW | 4Q22 |
LANDBANK
At the end of 4Q22, Direcional's land bank totaled a development potential of 168 thousand units and a PSV of BRL 32 billion (BRL 29 billion % Company).
The average cost of acquisition was equivalent to 9% of the PSV, being 78% 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 4Q22, 19 plots of lands were acquired, with a construction potential of 12,434 units and a PSV of BRL 3.3 billion (BRL 3 billion % Company).
The average cost of acquisition in the quarter was equivalent to 9% of PSV, and 80% of the payment shall be made via swaps.
Evolution of Landbank | 2021 | 2022 | 2022 | Adjustments | 1 | 2022 | 2022 | |||||||||||||
(BRL million) | Landbank | Acquisitions | Launches | Landbank | PSV % Co. | |||||||||||||||
Total PSV | 26,807 | 7,655 | (3,636) | 995 | 31,820 | 29,088 |
1 - Adjustments: update of sales price; canceled sales and swaps.
Units
168,006
CASH GENERATION ¹
Direcional presented cash generation in the amount of BRL 93 million in the 4Q22. In 2022, the cash generation totaled R$ 73 million.
Cash Generation by Quarter
(BRL million)
93
20
-6
-34
1Q22 2Q22 3Q22 4Q22
Cash Generation
Cash Generation by Year
(BRL million)
362 | ||||||||||||
158 | 167 | 146 | 73 | |||||||||
53 | ||||||||||||
38 | ||||||||||||
-17 | ||||||||||||
-71 | ||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
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
During 4Q22, Direcional announced the payment of interim dividends in the amount of BRL 0.70 per share, totaling BRL 104 million. Investors who held a shareholding position at the close of trading on December 16, 2022 were entitled to receive the proceeds.
The Company totaled an amount of more than BRL 170 million in Dividends in a 6-month period. 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 12 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 January 2023 23:59:06 UTC.
