Javer, developer of affordable entry-level, middle-income, and residential housing, announced on October 21, 2021 its third quarterly report of the year. The report showed results with growth in EBITDA, Net Income, and Margins.
However, units sold decreased to 3047, a contraction of 16.9% compared to the third quarter of 2020, where 3668 units were sold. Also, for 9M21 9,934 units were deeded, a contraction of 3.0% compared to the 10,245 units sold in 9M20. This is due to the depletion of subdivisions that were being deeded during the third quarter of 2020 and are no longer active.
On the other hand, the CEO reported, "The progress we have made was achieved despite the fact that during the months of July through September of this year we had a net of 6 fewer projects being deeded, compared to the active subdivisions in the same period of 2020, as a result of the brake that was put on the acquisition of land reserves and investment in inventories during the previous fiscal year, mainly to privilege the flow before the uncertainty brought by the beginning of the pandemic."
EBITDA continued to increase for the eighth consecutive quarter, presenting a 4.9% increase corresponding, in absolute terms, to $302.9 million compared to $288.7 million in the third quarter of the previous year. For 9M21, the increase in EBITDA was 19.1%, to $815.9 million from $685.3 million in 9M20.
Likewise, Net Income increased 19.1% to $72.4 million during this third quarter, compared to $60.8 million in the same quarter of the previous year. Likewise, in the accumulated period, it presented a positive variation of 86.4%, going from $94.9 million in 9M20 to $176.9 million in 9M21.
These results are mainly due to a strategy of improving the product mix and strict control of the Company's fixed costs and expenses, which led SG&A expenses as a percentage of revenues to decrease 88 basis points in the nine-month period.
The company said that during the quarter it completed the opening of three new projects located in Nuevo Leon, Jalisco, and the State of Mexico, all of them serving the middle and residential housing segments. This brings the total to eight new developments so far this year.
At the beginning of 2021, Javer expected a performance similar to that obtained in 2020. However, thanks to the good performance during the course of the year, they expect a higher growth than announced, projecting an EBITDA growth of between 5% and 8% and a positive free cash flow generation.
