Brazil Homebuilder’s Profit Falls 12.6%
Brazilian builder Direcional earned US$36.4 million in the third quarter, down 12.6%, as its mid-income arm Riva slowed while Brazil's rate stayed at 13.75%. The post Brazil Homebuilder’s Profit Falls 12.6% appeared first on The Rio Times .
Direcional, a Brazilian builder of affordable and mid-income homes, reported a 12.6% decline in net profit for the third quarter. Revenue remained steady at 1.16 billion reais, but the gross margin rose to a record 43.1%. The weaker performance was observed in Riva, Direcional's middle-income brand, which saw a 22.2% profit drop to 109.3 million reais.
Gross profit increased by 7.7% to 499.5 million reais. The company attributes the profit gain to the sale of older stock, which carries higher margins than new launches. New launches fell by 37.1% year-over-year. The slowdown was attributed to delayed launches, events like the World Cup and holidays, and changes in buyer assessments.
Riva's sales dropped 38% to 510.4 million reais, representing 49% of the group's total. The company's backlog of unbooked revenue from signed sales stood at 1.8 billion reais, up 10% from the previous year. Brazil's central bank maintained its Selic rate at 13.75% on November 4, citing adverse global conditions and upward risks to inflation.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.