Javer closed the third quarter of 2022 with sound results across its income statement, highlighting the double-digit climbs in net income, which amounted to Ps.98 million (+34.7% YoY) for the 3Q and Ps.222 million (+25.2% YoY) for the 9M.
Such climbs were preceded by the 22.1% and 6.5% increases in revenue, which went from Ps.1,780 million and Ps.5,606 million in 2021 to Ps.2,172 million and Ps.5,972 this 2022, and a broadened EBITDA that stood at Ps.334 million (+10.1% YoY) and Ps.871 million (+6.8% YoY) in the 3Q and 9M, respectively.
It is relevant to recall that, aiming to maximize profit, Javer has pushed a new product mix strategy entirely focused on higher-value homes (middle-income and residential segments). As a result, the average sale price hiked 17.7% and 15.6% in the 3Q22 and 9M22, respectively, thus explaining why revenues increased in the latter period in spite of the 8.0% drop recorded in sold units. In the 3Q22, units sold sat 24 units above that of 3Q21 at 3,171, outstanding the 22.9% growth rate in sold residential units.
The sum of all of the above, coupled with a lower investment in land reserves, have led to exponential growth in the Firm’s free cash flow, as Javer has generated roughly Ps.910 million of FCF since September 2021, its record-high amount for a 12-month-period. On a three-and-nine-month basis, FCF was Ps.444 million this 3Q22 (vs. negative Ps.26 million in 3Q21) and went up 26.6% YoY to Ps.658 million in 9M22 from Ps.520 million in 9M21.
Regarding the balance sheet, as of September 30, 2022, the Company posted improved debt ratios compared to last year’s 2.69x gross debt/LTM EBITDA and 1.78x net debt/LTM EBITDA, with levels of 2.14x and 1.16x, respectively. Moreover, in October Javer announced the signing of a syndicated loan for Ps.2,450 million to be used to settle the outstanding syndicated loan subscribed in February 2019, and to maintain the capital structure at the current threshold.
Mr. René Martínez, Chief Executive Officer of the Company stated, “Our higher-value approach and the achieved efficiencies in the cost structure has supported Javer in mitigating the inflationary pressures on construction inputs, which as of August 2022 had gone up roughly 13% YoY”.
Finally, in his message to investors, Mr. Martínez also added that two of Javer’s projects received the EDGE certification from the International Finance Corporation, proving the Firm’s commitment to building environmentally friendly developments. And that, thanks to the positive results, they now have grounds to raise Javer’s EBITDA guidance to approximately 7%.
