Casas Javer (BMV: JAVER) registered a 9 percent rise in income to US$7.1 billion for 2016, up from US$6.5 billion recorded in 2015. A higher average unit price, sales oriented toward the middle-income segment and a greater proportion of revenues coming from residential contributed to the result.
The number of units sold dropped to 18,352 in 2016, a 1.1 percent decrease from the 18,565 units sold in 2015. Casas Javer attributed this to a delay in obtaining permits for certain projects in Nuevo Leon, Jalisco and Quintana Roo.
Rene Martínez, the company’s CEO, was positive about its performance during the year. “Despite the effects of delays in obtaining permits in three developments, we ended the year with a growth of more than 10 percent in gross profit,” he said. “Our continued emphasis on controlling working capital allowed us to end the year with a generation of free cash flow of over US$527 million, which was more than enough to fund our substantial dividend payment, even after replenishment and improvement of our territorial reserves.”
Casas Javer is one of the largest housing developers in Mexico, recognized as the leading provider of Infonavit housing and specializing in the construction of affordable housing in Mexico.
The full report can be found here.