DISCLOSURE OF RESULTS

2Q23

DISCLOSURE OF RESULTS 2Q23

NET SALES amounted to R$353 million in 1H23, in line with 1H22. In 2Q23, net sales came to R$167 million;

AVAREGE PRICE INCREASE of 10.2% in 2Q23 vs. 2Q22, with average price of units increasing from R$220k to R$243k. In 1H23, average price increased 8.4% in relation to 1H22, from R$222k to R$241k;

UNITS FINANCED totaled R$229 million in 1H23, up 1% year on year. In 2Q23, units financed amounted to R$134 million, up 41% from 1Q23 and 6% from 2Q22;

ADJUSTED GROSS PROFIT totaled R$189 million in the last 12 months (LTM), up 13% from 2022, and in 2Q23, was R$46 million, up 21% from 1Q23. Adjusted Gross Margin stood at 32.2% in 2Q23, expanding 3.4 p.p. from 1Q23 and 5.6 p.p. from 2Q22;

BACKLOG REVENUE (REF) ended 2Q23 at R$568 million, up 3% from 1Q23 and 12% from 2Q22. Backlog Margin remained stable at 31%, up 1.5 p.p. from 2Q22.

São José do Rio Preto, August 09, 2023: RNI (B3: RDNI3), a real estate developer and builder, announces today its audited results for the second quarter of 2023. The following financial and operating information is presented on a consolidated basis in accordance with generally accepted accounting practices in Brazil based on Brazilian Corporation Law, International Financial Reporting Standards (IFRS) and the rules issued by the Brazilian Accounting Pronouncements Committee (CPC).

KEY INDICATORS

CONTENTS

MESSAGE FROM MANAGEMENT

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CONSOLIDATED OPERATING & FINANCIAL HIGHLIGHTS

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Analysis - MCMV-SBPE.H Product MCMV Program (Vertical and Horizontal) and SBPE Horizontal Projects

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LAUNCHES - MCMV-SBPE.H

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CONTRACTED SALES - MCMV-SBPE.H

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INVENTORY AND LANDBANK - MCMV-SBPE.H

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Revenue and Gross Profit - MCMV-SBPE.H

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Selling, General and Administrative Expenses - MCMV-SBPE.H

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Net Income (Loss) - MCMV-SBPE.H

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Backlog Revenue (REF) - MCMV-SBPE.H

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Analysis - SBPE.V Product and Subdivision Product SBPE Vertical and Subdivision Projects

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LAUNCHES - SBPE.V and Subdivision

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CONTRACTED SALES- SBPE.V and Subdivision

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Inventory and Landbank - SBPE.V and Subdivision

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Revenue and Gross Profit - SBPE.V and Subdivision

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Selling, General and Administrative Expenses - SBPE.V and Subdivision

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Net Income (Loss) - SBPE.V and Subdivision

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Backlog Revenue (REF) - SBPE.V and Subdivision

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Consolidated RNI

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Projects Delivered

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Transfer to Banks of Client Balances / Off-Plan Properties

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BALANCE SHEET: Main items

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Trade Accounts Receivable

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Cash and Debt

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Consolidated Balance Sheet

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Consolidated Statement of Income

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Consolidated Cash Flow Statement

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MESSAGE FROM

MANAGEMENT

We ended 2Q23 more optimistic on the coming months, mainly in light of the new rules for the Minha Casa, Minha Vida Program (MHML), as well as the recent announcement of the first cut in the policy rate.

During the quarter, we followed our strategic planning by prioritizing i) inventory sales, ii) permitting strategic projects in our Landbank, and iii) monetizing our receivables and the divestment of non-strategic assets.

In this context, the company did not launch any projects during 2Q23, with gross sales totaling R$523 million in 1H23, remaining in line with 1H22, while net sales totaled R$353 million in 1H23, in line with 1H22, a period when 4 projects were launched.

Also on sales performance, the company recorded in the quarter a decrease of 13% in inventory at market value compared to 1Q23, with another highlight the new increase in the average price of 10.2% in 2Q23 vs. 2Q22, with the average cost of units rising from R$220k to R$243k. In 1H23, the average price increase was 8.4% in relation to 1H22, from R$222k to R$241k.

Our transfers/borrowings totaled R$229 million in 1H23, remaining in line with the same period of 2022. In 2Q23, this figured totaled R$134 million, up 41% from 1Q23 and 6% from 2Q22. A highlight was MCMV products, which delivered growth of 24% vs. 1Q23 and 18% vs. 2Q22.

Turning to financial indicators, Net Revenue totaled R$143 million in 2Q23, an increase of 8% compared to 1Q23 and decrease of 24% from 2Q22.

Adjusted Gross Revenue was R$46 million in 2Q23, growing 21% from 1Q23 and remaining in line with 2Q22. Meanwhile, Adjusted Gross Margin in 2Q23 was 3.4 p.p. higher than in 1Q23, reaching 32.2%, and 5.6 p.p. higher than in 2Q22.

Despite these positive indicators, the company recorded a Net Loss of R$16.9 million, which mainly reflects the impact on the quarter from the atypical extension of first-quarter seasonality on most of our construction projects, whose evolution did not advance as planned and generated an impact on percentage of completion (PoC). Furthermore, in the specific case of the project Origem VG (SBPE in Várzea Grande), we suffered an impact from a loss in clients' borrowing capacity upon delivery of keys, which increased the flow of cancellations, which also affected the result.

In closing, we see this as a temporary impact that will be offset over the coming quarters, based on the evolution of each topic. It should be noted as well that we ended 2Q23 with future Backlog Revenue (REF) of R$568 million, 3% higher than in 1Q23 and 12% higher than in 2Q22, and Gross Backlog Margin of 31%, which is in line with 1Q23 and 1.5 p.p. higher than in 2Q22.

The Management - RNI Negócios Imobiliários S.A.

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2Q23 EARNINGS RELEASE

CONSOLIDATED OPERATING & FINANCIAL HIGHLIGHTS

The complete consolidated financial statements for 2Q23, accompanied by the respective notes, can be found in the Quarterly Information (ITR) document, which is available on our Investor Relations website (ri.rni.com.br) and on the website of the Securities and Exchange Commission of Brazil - CVM (www.cvm.gov.br).

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RNI Negócios Imobiliários SA published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 22:26:42 UTC.