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Javer Announces Double-Digit Growth in Volume, Revenues and EBITDA in 2Q18 and 6M18Servicios Corporativos Javer S.A.B. de C.V., (BMV: JAVER) ("Javer" or "the Company"), the largest housing development company in Mexico in terms of units sold, today announced financial results for the second quarter ("2Q18") and first six-month ("6M18") periods ended June 30, 2018. All figures presented in this report are expressed in nominal Mexican pesos (Ps.), unless otherwise stated. 2Q18 and 6M18 Highlights:
EO STATEMENT Mr. René MartÃnez, Javer's Chief Executive Officer commented, "We are very pleased to present our second quarter financial and operating results, which were above expectations for this period of the year. The first half of the year was marked by the electoral processes; in addition to the Presidential election, local elections were held in all states where we are present. Nevertheless, this process did not impede our solid growth in our key figures. As we have previously stated, our shift in product offering to have a greater middle-income and residential sales mix, drove an increase in the gross margin, both in pesos and percentage. The benefits we've gradually accumulated will help us to reduce the potential price increases in some of our key inputs, which are expected to take place in the following months. The consolidation of our sales mix continues to take shape, as 2 new projects began titling units during the quarter, both focused on the middle and residential segments. In addition, the 3 projects that we started in 1Q18 have been very successful and an increase in the sale price of each prototype we offer was achieved. This drove our 23.8% revenue growth, despite the absence of commercial lots sales during the period, while in 2Q17, Ps. 22 million were recognized for these sales. In relation to the subsidy program, it is important to mention that since April of this year, the maximum amount to be granted per subsidy was increased from Ps. 85 thousand to Ps. 98 thousand for those workers with a monthly salary that is less than 2.2 UMAs. As of July 9th, 41.1% of the total 2018 subsidy budget has been granted. In our case, 40.4% of the units titled during the quarter were made using this program compared to 38.0% in the same period of 2017. Likewise, during the quarter we generated positive free cash flow, after interest and tax payments. We estimated to make a greater use of cash for land reserves acquisitions during the first half of 2018, which we hope to formalize in the coming months; this will allow to align the pipeline for the second half of 2019. Furthermore, we expect to launch 12 new developments during the second half of the year, 7 of them focused on the residential segment and the rest in the middle-income segment. Moreover, we will be opening our first two developments in Playa del Carmen, Quintana Roo, which is part of our growth strategy, as initially we only had developments in Cancun. With this we intend to consolidate and gain market share in the state. On another matter, we are proud to report that Javer is celebrating its 45th anniversary this year, coincidentally the same time that INFONAVIT has been operating, which is the largest mortgage provider for the acquisition of housing in the country. During this time of coexistence, Javer has titled more than 200,000 units through Infonavit and has been the leader in its loans' system since 2014. As of June 30th, our market share is 9.9% considering the total of Infonavit loans for new housing, which represents 6.9% more than the previous year. Taking into account the total amount of Infonavit loans our market share is 5.2%. In these 45 years, change has been the only constant for Javer, which has caused us to have an adaptable "DNA" to any circumstance either in a period of prosperity as in times of crisis. Finally, given that we have not identified any factor and/or economic indicator that makes us think of an industry slowdown for the second half of 2018, we reiterate double-digit growth in revenues, and we modify our EBITDA projection as we expect an increase of at least 7.5%, the high range of our initial guidance, with a generation of neutral free cash flow." For a full version of this earnings release with financial statements, go to: http://www.javer.com.mx/investors.php View source version on businesswire.com: https://www.businesswire.com/news/home/20180718005869/en/ |