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Cyrela (CYRE3) posted net income of R$164 million in Q1, up 1.1% yoy


Cyrela (CYRE3) reported a net profit of R$164 million in the first quarter of 2023. The value is practically stable compared to the previous quarter of R$ 162 million, with a slight increase of 1.1%. Compared to the fourth quarter of 2022, profit fell by 21.2%.

Net margin was 12.75% and return on equity was 12.3%.

The company’s net sales for the period were R$1.283 billion, up 4.2% year-on-year. In relation to the immediately preceding quarter, there was a decline in sales of 6.4%.

The company’s total sales value (PSV) for the period was R$1.345 billion, up 30% from a year ago and 52% down from the fourth quarter.

“We launched 8 projects during the quarter totaling R$1.3 billion in PSV, of which R$479 million has already been sold,” the company said.

“In addition to a R$1.1 billion warehouse sale, we had net sales totaling R$1.5 billion for the quarter, an 18% increase over the same period last year.”

Cyrela’s share of product launches in the quarter reached 69%, down from last year (85%) but up from Q4 2022 (58%).

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According to the company, 75% of the PSV introduced during the quarter is accounted for through consolidation and 25% through the equity method.

Of net sales for the quarter, R$130 million was from sales of completed inventories (8%), R$936 million from sales of inventories under construction (61%) and R$479 million from sales of new product launches (31%). .

“As a result, Cyrela achieved a 36.2% VSO of launches for the quarter,” said management.

At the end of the first quarter, inventories at market value totaled R$8.694 billion, down 4% from the previous quarter.

Financial result for the quarter was positive at R$46 million, up from a positive R$26 million in Q4 2022 and higher than a positive R$9 million in Q1 22.

At March 31, 2023, Cyrela’s gross debt, including interest payable, was BRL 4.658 billion, down 4% from BRL 4.855 billion at December 31, 2022.

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In Q1 2023, the Company recorded cash burn of R$35 million, comparable to cash burn of R$53 million in Q1’22 and cash burn of R$54 million in Q4’22.

The company’s leverage as measured by net debt/
Equity decreased compared to the previous quarter and reached 6.5% in Q1 2023.


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