Servicios Corporativos Javer (BMV) Q2 2024 earnings summary

Executive summary

• Achieved double-digit growth in gross profit, EBITDA, and net income in 2Q24 and 6M24, with margin expansion and positive free cash flow generation.

• Opened 3 new projects in 2Q24 and 6 in 1H24, with an annual goal of 14 and plans for 8 more in the second half.

• EDGE certification obtained for 7,638 homes in 2Q24, totaling 13,905 certified units across 14 projects in two years.

• Average sales price increased 7.4% in 2Q24 and 11.5% in 6M24, driven by a shift to higher-value homes.

• Confirmed annual guidance for double-digit growth in revenues and EBITDA.

Financial highlights

• Revenues increased by 6.5% in 2Q24 to Ps.2,453.3 million and 4.6% in 6M24 to Ps.4,561.0 million year-over-year.

• Gross profit rose 17.8% in 2Q24 and 16.5% in 6M24; gross margin expanded to 33.0% in 2Q24 and 32.9% in 6M24.

• EBITDA grew 23.5% in 2Q24 and 24.2% in 6M24; EBITDA margin reached 19.8% in 2Q24 and 17.2% in 6M24.

• Net income surged 53.6% in 2Q24 and 54.1% in 6M24; net margin expanded to 8.6% in 2Q24 and 6.6% in 6M24.

• Free cash flow was Ps.368.9 million in 2Q24 (+16.0%) and Ps.172.2 million in 6M24 (+59.8%), driven by higher EBITDA and lower land investments.

Outlook and guidance

• Shareholders representing 62.69% of capital stock agreed to a tender offer by Vinte Viviendas Integrales to acquire up to 100% of shares at $14.9355 pesos per share, pending regulatory approval.

• Rating agencies HR Ratings and Verum ratified corporate ratings but changed outlooks to "Review in Process" and "In Observation" due to the pending transaction.

• Over 3,800 additional homes expected to be EDGE certified in the short term.

• Management confirms double-digit growth guidance for revenues and EBITDA for the full year.