Release Date: August 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LPS Brasil - Consultoria de Imoveis SA (BSP:LPSB3, Financial) achieved the second highest EBITDA margin in the last 10 years, reaching nearly 40%.
- The company reported a 20% increase in brokered total transactions, totaling BRL3.5 billion compared to the same period last year.
- CrediPronto, a segment of the company, saw a 9% increase in contract origination, totaling BRL852 million.
- Recurring expenses fell by 8% compared to the same period last year, contributing to improved financial efficiency.
- The company experienced a significant increase in organic visits to its portal, reaching 11 million in the last 12 months, a 21% increase from the previous year.
Negative Points
- The approval of new real estate projects in São Paulo has slowed, resulting in a lower volume of launches in the quarter.
- Rede Lopes launches were 7% lower than the same period last year, indicating a decline in new project initiations.
- Net revenue from CrediPronto decreased by 8%, attributed to previous credit restrictions and funding challenges.
- The company's cash and cash equivalents saw a 28% negative variation compared to the first quarter of 2024.
- Franchise expenses increased by 56%, reflecting higher costs associated with expanding and enhancing franchise profitability.
Q & A Highlights
Q: How do you foresee the origination of funding for CrediPronto throughout the year?
A: Francisco Lopes, Chief Operating Officer, explained that the scenario for funding origination is positive due to the regularization of funding. He noted that there were significant months with positive balances in savings accounts, which is a good indicator. The origination has been climbing, and they expect a positive trend in the second half of the year, driven by growing funding and positive end balances.
Q: Can you explain the increase in franchise expenses in the second quarter of 2024?
A: Cyro Naufel, Technical and Investor Relation Officer, stated that the increase in franchise expenses was planned and aligns with the company's strategy to enhance the profitability of franchises. This is part of their broader strategy to boost franchise performance.
Q: What impact did the macroeconomic environment have on LPS Brasil's operations in the second quarter of 2024?
A: Marcos Lopes, CEO, mentioned that despite the uncertain macroeconomic environment, including inflation pressures and high interest rates, the company achieved consistent results. The real estate financing market showed improvement, positively impacting their CrediPronto operations.
Q: How did the company's financial results perform in the second quarter of 2024?
A: Cyro Naufel highlighted that the company achieved the second highest EBITDA margin in the last 10 years, reaching 38.6%. Net income before IFRS increased by 10%, totaling BRL11.9 million. The company also managed to reduce recurring expenses by 8%.
Q: What are the expectations for the real estate market in São Paulo, given the delays in project approvals?
A: Marcos Lopes noted that since May, there have been delays in the approval of new real estate projects in São Paulo, leading to a lower volume of launches. However, the company remains optimistic about future opportunities and continues to seek new business ventures to enhance shareholder returns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
