MRV (MRVE3) recorded adjusted net profit in its development segment in the first quarter of this year, reversing the loss observed in 2023, driven by the increase in gross margin, as announced by the real estate group this Wednesday.
MRV Incorporação, which encompasses the MRV and Sensia brands, achieved an adjusted net profit of R$54 million in the first three months of 2024, compared to the adjusted loss of R$65 million reported in the same period of the previous year. Gross margin improved to 25.9%, in contrast to 20.6% in the first quarter of 2023. Adjusted net margin also increased by 4.5 percentage points in the same comparison, reaching 2.9%.
These adjusted results do not consider the impacts of equity swaps and mark-to-market of IPCA/CDI swaps on the company’s results.
MRV (MRVE3)
MRV&Co had already released an operational preview of the first quarter, with net sales in development increasing 18.4% compared to the previous year, totaling R$ 2.13 billion, and launches reaching a General Sales Value (PSV) of R$ 1.59 billion, an increase of 150.4% compared to the previous year.
On a consolidated basis, the MRV&Co group recorded an adjusted loss for shareholders of R$11 million in the quarter, compared to a profit of R$46 million in the same period of the previous year.
Adjusted cash generation in the development segment was R$24.8 million, compared to a consumption of R$139.7 million in the same period of the previous year.
The construction company’s net debt to EBITDA ratio in Brazil in this segment was 3.2 times in the quarter ended in March, compared to 8.7 times in the same period of the previous year and 4.8 times at the end of December.
The company
The company is a Brazilian real estate company, specialized in the construction and incorporation of popular residential projects. Founded in 1979, MRV is one of the largest construction companies and developers in the country, operating in several Brazilian states.
Its main focus is on the construction of economic and medium-standard properties, mainly aimed at the federal government’s Minha Casa Minha Vida program.
The company is known for its large-scale operations and for offering easy payment conditions, making home ownership more accessible for a significant portion of the population. In addition, MRV also has other brands, such as Sensia, which offers projects focused on sustainability and technology.
