RNI Negócios Imobiliários S.A. (RDNI3) Earnings Call Transcript & Summary

Ladies and gentlemen, thank you for standing by. Welcome to the video conference of RNI Negocios Imobiliarios S.A. to discuss the results of the second quarter of 2025. With us today are Mr. Gustavo Felix, CEO and IRO; and Mr. Henrique Ravazzi, IR Manager. [Operator Instructions] Before proceeding, we'd like to clarify that any statements that may be made during this call regarding the company's business outlook, projections and operational and financial goals are based on the beliefs and assumptions of RNI's management team and on information currently available to the company. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions because they relate to future events and therefore, depend on circumstances that may or may not occur. Investors should be aware that general economic conditions, industry conditions and other operating factors may affect the company's future results and could cause results to differ materially from those expressed in such forward-looking statements. Now I'd like to turn it over to Mr. Gustavo Felix. Please, sir, go ahead.

Good morning, everyone. So let's discuss Q2 2025 results. We have the highlights, cash generation and gross debt. We will also discuss operating results, financial results. And finally, our income, our P&L. As for highlights, so let's start talking about our cash generation. So you can see we have a plus BRL 39 million. And for the first half of 2025, total cash generation reached BRL 42 million or 5.2% increase year-over-year. And as you can see, we have also seen consistent increase of MHML prices. So 5.5% growth compared to the first quarter of 2025, and 10.1% year-over-year. When we go over cash generation, we closed second quarter with BRL 39 million. And what we see is that we have been succeeding in generating cash generation compared to the last quarters of 2023 and also decreasing our gross debt. So when we compare the third quarter of 2023, we had a debt of BRL 800 million, and we closed the last quarter with that number down to BRL 548 million, which just stresses our focus on generating cash and decreasing debt in order to improve our capital structure. For the last quarter, we delivered three projects, Aparecida De Goiania with 496 units and a PSV of BRL 75 million. In Blumenau, PSV of BRL 62 million, 333 units. And Moradas Jardins in Rondonopolis -- I'm not able to see my screen. We apologize. BRL 95 million. Let me improve my screen display. So as you can see, totaling BRL 232 million of PSV and 1,242 units delivered. As for land bank, we see a decrease compared to the same period from last year by 48% to BRL 2.7 billion. As for the previous quarter, you can see we also had a drop and the significant, actually, decrease that took place in the first quarter of 2025. Inventory at marketplace compared to the same period of last year, we also see a decrease by 44%. We had a migration of [ BRL 66 million ] of our inventory to Tiers 3 and 4 regarding Minha Casa, Minha Vida or My House, My Life. And that's a very important change, particularly regarding interest rate to our customers and buyer. And we don't have 100% adhesion, but this has improved our performance after having completed the project. And our inventory, BRL 287 million and only BRL 23 million in SBP (sic) [ SPBE ]. Gross sales BRL 70 million this quarter. And we can see PSV over here for this half year, BRL 177 million. We have not launched any new project for 2 years, and that's why. As for cancellation, we closed at BRL 40 million. We see a decrease by 13% compared to the first quarter of 2025, and 39% year-over-year in the first half. We see consistent cancellations. We had four projects related to SBPE delivered two in the second half of last year and two, the first half of this year. So that's why we believe that we will still see cancellations because buyers are not able to keep on [indiscernible] after that. Net sales, we closed with BRL 29 million, and that reflects cancellations, as I mentioned earlier, and for the first half, BRL 90 million. When we examine price adjustment and cost analysis, you can see BRL 45 million -- a plus BRL 45 million. And we achieved that because of the price increase and profitability. And as we showed you before, price has been consistently increasing. Net revenue, we closed at BRL 60 million. For the first half, BRL 153 million, a drop by 44%. Adjusted gross profit, 32%, approximately BRL 19 million of adjusted gross margin, a decrease by 33% compared to the same period last year. Now let's discuss our income statement, BRL 60 million, that's our net operating revenue. Gross profit at BRL 12 million; and gross margin, 20.2%; adjusted gross margin, 32.4%; operating income, we see a decrease previous quarter, BRL 46 million (sic) [ minus BRL 46 million ] and now minus BRL 24 million. So our net interest revenue, BRL 12 million. And then we closed that at BRL 25.8 million, that's our loss compared to the first quarter that was minus BRL 47 million. So you can see our numbers have improved compared to the last quarter. Well, that's what we had to share with you today regarding this quarter.

[Operator Instructions]

Felix, I see a question about what's our expectation regarding new launches. Question comes from [ Renata Ignacio. ]

Well, I'm not really sure how closely you have been following what's going on. But yesterday, we had an offer from controllership. So we will see that we will not carry out any launches. We don't foresee any launches. So we are working on our capital structure. And considering the Selic interest rate and with our debt. It's really what we have agreed on with the Board is this temporary -- we are not going to release anything new for the time being.

If there are no further questions, we will turn it over to our speakers. Mr. Felix?

In order to close, despite the current discussions, we are carrying on working and delivering. So nothing has changed. And we know that considering the results, if things are making sense, and in the future, we may then resume some other activities, but in the better conditions. That's it. I'd like to thank you all for joining us. And I wish you all a great day and a great weekend.

With that, we conclude RNI Negocios Imobiliarios video conference call. Thank you very much, and have a great day.