Largest developer in the Northeast, Moura Dubeux (MDNE3) is “free” on the Stock Exchange, in the view of its CEO, Diego Villar. The company is focused on high-end buildings and condominiums, so it is less affected by the loss of income of the Brazilian population and feels less the effects of the increase in interest rates in the country.
Villar participated in the Inside the Resultsa project in which the InfoMoney interviews CEOs and directors of important publicly traded companies, in Brazil or abroad. Executives talk about Q2 2022 balance sheet and outlook. To follow all the interviews in the series, subscribe to the InfoMoney YouTube channel.
“I think the banks have already priced in this interest rate hike. It was already expected that it would be at 13.75% per year. Mortgage rates were already comfortable at that point. On the other hand, this is also not a big concern for us because our funding dynamics are not happening yet. Our crop is still young. So customers are going exactly on demand, because they want the product, because they need it, and, mainly, because our markets have low shelf stock,” said Villar.
“We have seen demand still being resilient even under this scenario [de juros mais altos e perda de poder de compra da população]. In fact, the Brazilian economy has been resilient despite much of the information that sometimes reaches the population”, added the CEO.
Marcello Dubeux, CFO of the company, highlighted fundamentals, but said that Moura Dubeux should only pay dividends to shareholders in two years.
“Any type of analysis you do, you can see that it is a profitable company, generates cash, has the best margins in the segment, has excellent operating rates, low cancellation and default rates, low indebtedness, net cash, unique competitive positioning, leader in segment, and negotiates at a multiple discount for the other companies in the sector”, he said.
The executives also talked about the decision not to expand the business outside the Northeast region, about how they manage inventories, prospects for launches, about the reduction in gross margin and VSO (sales velocity indicator) in the second quarter in the annual comparison. and on the possibility of M&A (mergers and acquisitions). Watch the full live above, or Click here.
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