Casas Javer today reported an increase of 19 percent in net income, reaching MX$1.9 billion from MX$1.7 billion in 1Q17 as a result of the company’s diversified product offering and an increase in average prices per unit, to MX$416,700 in 1Q18 from MX$386,300 in 1Q17.
Units sold amounted to 4,747 in 1Q18, which is 12.4 percent up on the 4,224 units sold in 1Q17. The company attributes this to the momentum of the projects that began operations in 4Q17 and the three new projects that were launched during 1Q18.
“The positive inertia demonstrated by the company in the final quarters of 2017 was reflected in the improvement of practically all operating indicators, when comparing this first quarter of the year against the same period of the previous year,” said René Martínez, the company’s Director General.
Of the products sold in 1Q18, 803 were in the social interest segment (MX$0-300,000), 3,663 were in the middle-class segment (MX$300,000-850,000) and 281 were in the residential segment (MX$850,000 and higher).
Casas Javer remains the number one provider of Infonavit housing on a national level, as well as on a state-wide level in Nuevo Leon, Queretaro, Jalisco, Aguascalientes and State of Mexico. In Quintana Roo, the developer comes in third. To address this, Javer has a growth strategy to expand its operations to Playa del Carmen, where it will launch residential projects.
In 2018, Javer expects to complete its second residential project in Mexico City’s Narvarte neighborhood, Monte Beistegui, which has 24 apartments. This project is currently under development with the pre-sale stage slated to begin in the coming months.
“In summary, we are very satisfied with the results obtained during this first quarter, which not only reflect a substantial improvement on the same period of the previous year, but also surpassed our expectation of growth for this period of the year,” said Martínez. “This leaves us very confident, so we ratified our growth guide for the year to include double-digit revenue growth, between 5 and 7.5 in EBITDA and positive generation of free cash flow.”
The full report can be found here.