By The Rio Times | Created at 2025-03-14 10:37:40 | Updated at 2025-03-15 01:04:59
14 hours ago
Eztec Empreendimentos e Participações S.A. reported a net profit of R$126.6 million ($21.1 million) for the fourth quarter of 2024, marking a 53% increase compared to the same period in 2023.
The São Paulo-based real estate developer announced these results on March 13, 2025. The company’s full-year net profit reached R$404.6 million ($67.4 million), representing a significant 69% growth from 2023.
Eztec achieved a record net revenue of R$1.56 billion ($260 million) for 2024, a 44.1% increase year-over-year. Fourth-quarter revenue climbed to R$426.5 million ($71.1 million), up 26.2% from Q4 2023.
The company’s EBIT rose to R$106.1 million ($17.7 million), showing 50.5% growth. Gross margin improved to 37.5%, an increase of 4.2 percentage points over the previous year.
Eztec attributed its strong performance to increased property sales, particularly ready-to-move-in apartments that generate immediate full payments. This strategy, combined with launching more profitable projects, boosted the company’s profitability throughout 2024.
Eztec Posts 53% Profit Surge in Q4, Caps Record-Breaking Year. (Photo Internet reproduction)The developer reported a cash burn of R$185.4 million ($30.9 million) in Q4, significantly higher than the R$57.7 million ($9.6 million) in Q3. This increase stemmed primarily from an extraordinary dividend payment of R$150 million ($25 million) to shareholders.
Brazil’s Real Estate Market Surges in 2024
Net debt rose to R$365.9 million ($61 million), a 102.7% increase from Q3. Eztec explained this resulted from utilizing production financing from commercial banks at an average 8.9% annual interest rate.
These results reflect the broader success of Brazil’s real estate market in 2024. The sector set records with 383,483 property launches (up 18.6%) and 400,547 sales (up 20.9%) nationwide, according to the Brazilian Chamber of Construction Industry.
Property prices across 56 Brazilian cities increased by 5.88% throughout 2024, outpacing the 2.99% inflation rate. São Paulo specifically experienced a 33% rise in residential sales and 47% growth in property launches from January to September 2024.
Eztec management expressed satisfaction with 2024’s performance while acknowledging challenges ahead, including managing record delivery volumes and leasing commercial space in a tightening economic environment.
