Moura Dubeux Engenharia (MDNE3) Q2 2024 earnings summary

Executive summary

• Achieved record net profit of R$75 million in Q2 2024, with a net margin of 19.1% and ROE/ROAE of 15%, marking the best quarter in company history.

• Net launches reached R$637 million, up 83.8% sequentially and 7.3% year-over-year, with net sales at R$492 million, up 40.3% year-over-year.

• Operational consolidation and product diversification, especially the Mood brand and Condominium model, drove performance and contributed significantly to sales.

• Maintained low leverage, with net debt at 6% of equity, and a disciplined approach to capital allocation.

• Focused on disciplined growth, profitability, and shareholder returns, with a strong outlook for the remainder of 2024.

Financial highlights

• Net revenue reached R$392.1 million in Q2 2024, up 25.2% year-over-year and 27.1% sequentially.

• Gross profit was R$152 million, up 40% from Q1 2024, with gross margin at 38.7%.

• Adjusted EBITDA for the quarter was R$89.9 million, margin at 22.9%, up 46.9% year-over-year.

• Net profit for Q2 was R$75 million, with a net margin of 19.1%.

• Free cash flow in Q2 2024 was R$19.2 million; net cash position stood at R$87.7 million.

Outlook and guidance

• Management expects continued strong launches and sales in 2H24, projecting the best year in company history.

• Projected revenue for 2024 to reach R$1.6 billion, with gross profit estimated above R$500 million.

• Dividend payments of R$140 million expected in 2024, with at least R$100 million annually going forward.

• Results to be recognized in development and closed sales increased by 28.1% and 0.9% compared to 1Q24.