ACCESS Newswire
19 Jul 2019, 02:31 GMT+10
MONTERREY, NUEVO LEON, MX / ACCESSWIRE / July 18, 2019 / Servicios 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, announces its financial results for the second quarter ("2Q19") and first six-month periods ended June 30, 2019. All figures presented in this report are expressed in nominal Mexican pesos (Ps.), unless otherwise stated.
2Q19 and 6M19 Highlights:
CEO STATEMENT
Mr. Rene Martinez, CEO of the Company stated, 'Today we have the pleasure to present the financial and operating results for the first half of 2019, which are in line with our annual guidance and in accordance with our expectations for the first two quarters of the year.
With respect to the comparison with 2018 periods, the decrease in the number of units sold and the main indicators were caused by: i) the cancellation of the 2019 subsidies programs, which affected volume, as we had foreseen at the beginning of the year; together with ii) the depletion of 10 projects during the last months of 2018, which we expect to replace during the second half of 2019.
Despite this effect, it is important to note that our austerity plan, which was implemented at the beginning of the year, has allowed us to substantially lower expenses with respect to the 2018 periods. Likewise, the improvement in the product mix led to an 11.6% increase in the average sale price during 2Q19, which together with the efforts to lower costs, resulted in a 143-percentage point growth in the gross margin compared to 2Q18. In addition, effective inventory management supported the generation of a positive free cash flow during the period.
During 2Q19, we launched 7 new projects throughout 5 of our business units. We are very pleased to mention that one of these projects represents our incursion into the state of Guanajuato, which is a new market for Javer. This project will be managed by our Queretaro office, and we hope to quickly consolidate our presence in this new market in order to analyze the possibility of increasing operations in this great state. The second half of 2019 will also be very intensive in terms of project openings, we expect to begin 8 more projects, 2 of which are focused in middle-income housing and 6 focused on the residential segment.
Despite the volume contraction, we continued to retain market share leadership within the INFONAVIT system, both in terms of loans granted for new housing with 8.4% market share as well as for total loans with 4.3% market share.
With respect to relevant matters at the sector level, we are still waiting for the new housing policy to be released in the following months. On the other hand, INFONAVIT announced during the month of May the increase in the amount of loans for those beneficiaries with the lowest income (less than 2.8 UMAS). Undoubtedly, this increase will benefit the most vulnerable segment of the population, who previously depended on a subsidy for the acquisition of a home. This program was launched on July 3.
It is also important to emphasize that various industry players are developing a range of alternatives for granting loans. Specifically, one financial institution, with support from companies within the industry, is working on a program to grant mortgages to the non-affiliated sector to IMSS and INFONAVIT. This initiative will undoubtedly provide an opportunity to acquire a new home to all this demand that was not addressed at all in the past years; we believe that if this program is able to flourish, it will be favorable for all of us who currently comprise the industry.
Regarding refinancing, we continue making progress in the revision of documents in order to close the transaction in the coming weeks.
In summary, the results obtained during this first half and the actions undertaken by the various industry players leave us very comfortable in ratifying our 2019 guidance of consistent revenues with respect to 2018 revenues, EBITDA growth of between 2.5% and 5.0% and the positive generation of free cash flow.'
For a full version of this earnings release with financial statements, go to: http://www.javer.com.mx/investors.php.
CONTACT:
Veronica Lozano
IR, CSR and Planning Director
Tel. +52 (81) 1133-6699 Ext. 6515
[email protected]
SOURCE: Servicios Corporativos Javer S.A.B. de C.V.
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