Direcional: net operating profit reaches R$135.1 million in the 2nd quarter

Direcional reported net operating income of R$135.1 million in the second quarter of 2024, an amount 86.9% higher than in the same period in 2023.

The ‘operational’ criterion excludes R$11 million in positive effects from the stock swap operation and other expenses considered non-recurring. Without this, the company had a net profit of R$146.2 million, which represents an increase of 40% on the same annual comparison basis.

The improvement in profit, regardless of the criteria, is mainly due to the developer’s cycle of more launches and sales, with price increases and costs kept under control. This equation helped to increase revenue and dilute expenses, expanding margins.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) totaled R$206.9 million, an increase of 56.8% year-on-year. The adjusted EBITDA margin was 24.5%, a decrease of 0.1 percentage points (pp).

Net operating revenue totaled R$844 million, an increase of 39.4%, due to the increase in property sales and the progress of construction projects. The company highlighted that this revenue level was a record.

The equity line (which calculates the results from ventures carried out in partnership) generated a gain of R$19 million, an increase of 61%.

Gross margin reached 35.8%, up 2 percentage points. Adjusted gross margin was 37.8%, up 1.3 pp.

General and administrative expenses totaled R$52 million, up 21%. They represent 4.4% of total revenue, down 0.8 pp, i.e. there was a dilution.

In turn, commercial expenses were R$71 million, an increase of 29%. They represented 8.3% of revenue, a decrease of 0.5 pp.

The ‘other’ line brought an expense of R$ 17 million, which originated from provisions and legal expenses, partially offset by the sale of shares.

The financial result (balance between revenues and expenses of a financial nature) was positive by R$3.5 million.

The company reported cash generation of R$219.0 million. Thus, it ended the quarter with net cash of R$153 million. Leverage (measured by the ratio between net debt and equity) was negative at 6.3%.

Operational performance

As previously reported, Direcional’s launches were 9.9% higher when comparing the second quarter of 2024 with the same period in 2023, reaching R$1.197 billion. Net sales rose 71.7% to R$1.260 billion, a record level – reflecting the favorable conditions of Minha Casa Minha Vida (MCMV) and the company’s strategy of prioritizing asset turnover.