NEW YORK--(BUSINESS WIRE)--
On the back of its strategy to enhance the product mix through greater participation of middle-income and residential housing, posted year-over-year growth rates of 5.8% in gross profit for both the three and six-month periods ended on June 30, 2022, amounting to Ps.586 million and Ps.1,103 million, respectively.
The above was achieved despite the decreases in revenues (-4.4% in 2Q22 and -0.7% in 6M22) and units sold (-11.8% in 2Q22 and -13.4% in 6M22), which partly follow the decline in affordable entry-level housing sales, as the Company decided to comprehensively gear its efforts towards the marketing of higher value homes (which feature higher margins).
The results of Javer’s strategy are clearly attested in the gross margins, which improved by 2.9 p.p. and 1.8 p.p. over the same periods, as well as in the higher average sales price, which rose 7.6% YoY in 2Q22 and 14.1% YoY in 6M22 to roughly stand at Ps.633 thousand for both periods.
Likewise, EBITDA went up annually 2.2% to Ps.328 million (EBITDA margin +1.1 p.p.) in 2Q22 and 4.9% to Ps.538 million (EBITDA margin +0.8 p.p.) in 6M22. And, supported by a lower comprehensive financing cost due to the prepayment of debt, net income surged 17.5% and 18.6% to Ps.104 million and Ps.124 million, in 2Q22 and 6M22 respectively, with net margins of 5.3% (+1.0 p.p. YoY) and 3.3% (+0.5 p.p.).
On the free cash flow (FCF) side, positive figures of Ps.188.3 million and Ps.214.3 million were achieved.
Mr. René Martínez, Chief Executive Officer of the Company mentioned, ¨We concluded the first half of 2022 with favorable financial and operating results that allow us to reaffirm our 2022 guidance, consisting of improved revenues and a 3% growth in EBITDA.”
On another front, he also stated that, during the quarter, Javer launched five new projects in the states of Jalisco and Nuevo Leon, all of which belong to the middle-income and residential segment. And was very pleased to announce that Javer opened, during June, its first classroom in association with Construyendo y Creciendo, A.C., through which they aim to support construction workers and community members in completing their elementary and secondary education.
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