Good morning, ladies and gentlemen. Welcome to the Cury Construtora Earnings Video Conference Call for the Second Quarter of 2024. This video conference is being recorded, and the replay can be accessed at the company's website, www.ri.cury.net. The presentation is also available for download. Please be advised that all participants will be in watch-only mode during the presentation, and later, we'll begin the Q&A session, when further instructions will be given. Before proceeding, I would like to reinforce that forward-looking statements are based on the beliefs and assumptions of Cury's management and on current information available to the company. Such statements may involve risks and uncertainties as they refer to future events, and therefore, depend on circumstances that may or may not occur.
Investors, analysts, and journalists should take into account that events related to the macroeconomic environment, the industry, and other factors may cause results to differ materially from those expressed in such forward-looking statements. Present in this video conference are Mr. Fábio Cury, CEO, and Mr. João Mazzuco, CFO, Ronaldo Cury, Investor Relations Officer. I would now like to give the floor to Mr. Fábio Cury, who will start the presentation. Mr. Fábio, you may continue. Good morning, everyone, and thank you for attending Cury's conference call for the second quarter of 2024. Representing Cury today, there are, in addition to me, Ronaldo Cury, who is our investor relations officer, and João Mazzuco, our CFO. In the conference, we'll present the main highlights of Cury's operational and financial performance, and at the end, we'll open for questions and answers.
Our effort and commitment to achieve high operation on financial standards continues to produce excellent results. This is evidenced by a robust sales demand in the second quarter of 2024, which, due to its indicators, reaffirms our strategy of expanding operations this year. The second quarter was marked by several very significant launches. Here, I highlight the newest success in Mooca region, in the city of São Paulo. Cidade Mooca Navona, which has 921 units and a PSV of BRL 267 million. With this launch, which took place in June, we completed 5,203 units in the region in just 3 years. A large project divided into 7 phases, which are developing with excellence to offer to its future residents.
We noticed the continuity of this demand in the third quarter, when we launched another phase of Heitor dos Prazeres in Porto Maravilha, located in Rio de Janeiro. The launch of Condomínio Colombina, with 500 units and a PSV of BRL 141 million, has around 90% of units sold already. The first phase of the launch was in the second quarter, with 1,300 units, and was also an impressive sales success. Now, I hand the floor over to Ronaldo, who will bring details of operational financial results. Good morning, everyone. On slide six, I'll go over the highlights of our operational financial performance in the second quarter of 2024.
We recorded a total of launches of BRL 1.7 billion, net pre-sales of BRL 1.7 million, net sales over supply of 50.5%, and cash generation of BRL 152 million. We reported a net revenue of BRL 998 million, adjusted gross margin of 38.5%, a net income of BRL 175 million, and net margin of 17.6%. In this quarter, we launched eight projects, a total of PSV of BRL 1.7 billion, five being located in São Paulo and three located in Rio de Janeiro. The highlights were: Mérito João Dias, launched in April with a PSV of BRL 184 million, located in the South Zone of São Paulo, with almost all its units sold.
Urban Vila Maria 2, located in the North of São Paulo, and launched in April, with a total PSV of BRL 136 million and more than 80% of units sold. Heitor dos Prazeres Pierrô Condominium, launched in April with a PSV of BRL 502 million, located in Porto Maravilha region in Rio de Janeiro, with around 90% of units sold. On Slide 8, let's look at sales performance. In the second quarter of 2024, we reached BRL 1.7 billion in net pre-sales, with an increase of 46.5% in relation to the second quarter of 2023, and an increase of 12.7% compared to the first quarter of 2024.
Our sales oversupply in the second quarter was 50.5%, an increase of 5.1 percentage points in relation to the second quarter of 2023, and 2.6 percentage points higher when compared to the immediately previous quarter. The sales of our supply of the last twelve months reached 75.1%, a growth of 2 percentage points in relation to the second quarter of 2023, and 1.9 percentage points higher when compared to the first quarter of 2024. We closed the second quarter with BRL 1.7 billion PSV in stock, of which 98.5% are units launched from constructions that have not started, or units under construction, and only 1.5% of completed units.
On slide nine, we can see in the chart on the left, that in the second quarter of 2024, our sales mix focused on the highest brackets of Minha Casa, Minha Vida housing program, and even outside the program. In the chart on the right, we show the increase in the average price per unit sold. In the second quarter of 2024, the average price was BRL 301.5 thousand, an increase of 8.3% compared to the second quarter of 2023, and of 3.2% in relation to the first quarter of 2024. On slide ten, we present our land bank. In the second quarter of 2024, we reached a record high, closing with a total of BRL 17.6 billion in PSV, which corresponds to more than 59,000 units in total.
Still on slide 10, we show cash from operations, which reached BRL 152 million in the quarter. With that, I turn the floor over to our CFO, João, who will give more details about our financial results. Please go ahead, João. Good morning, everyone. Continuing on slide 12, we highlight our net revenue. In the quarter, it reached BRL 998.1 million, an increase of 37.2% compared to the same period of the previous year. Still on slide 12, we present our gross profit, which was 39.3% higher in the quarter compared to the same period in 2023, and 20.8% higher compared to the first quarter of 2024.
Our adjusted gross margin, which reached 38.5% in the quarter, grew 0.6 percentage points compared to the second quarter of the previous year, and increased 0.5 percentage points in relation to the first quarter of 2024. On slide 13, we highlight the net income, which in the part that belongs to the parent company, reached BRL 172.2 million in this quarter, presenting an increase of 41.8% compared to the first quarter of 2024. The net income from our operations reached BRL 175.3 million in the quarter, with a net margin of 17.6%, 0.6 percentage points higher when compared to the same period in 2023. On slide 14, we highlight the profile of our gross debt.
We closed the quarter with a total gross debt of BRL 1.08 billion, 76.2% higher than on December 31, 2023, and with net cash of BRL 477.3 million, an increase compared to the BRL 378.9 million recorded on December 31, 2023. Here, it's worth highlighting the issue of debentures carried out in June, which backed an issue of CRI, Certificate of Real Estate Receivables, which had very strong demand above the additional 25% lot that Cury can exercise. We raised BRL 687.5 million at rates that are currently the lowest corporate debt funding rates on our balance sheet. With this funding, we prepaid a debt of BRL 200 million, which had a higher cost, and also lengthened our debt profile.
Our net cash to equity ratio closed the quarter at 45.3%. Our debt amortization schedule runs until 2031. On slide 15, we once again report a solid return on equity, with ROE at 62%, considering the last 12 months. We know that this ROE is one of Cury's greatest differentiators, resulting from an extremely efficient cash management. Thank you very much, and I return the floor to Fabio. We advanced another stage in our sustainability agenda with the creation of the ESG committee, coordinated by our board member, Viviane Mansi. The committee will look strategically into our ESG initiatives and goals. For the second year in a row, we were highlighted in the Institutional Investor II Award in the Latin America Executive Team Real Estate segment. We were the winners in the categories of Best CEO, Best CFO, Best IR Team, and Best IR Program.
Furthermore, we were in the top three in the Best ESG and Best IR Professional categories, both in the small cap category and the general classification. Our thanks to the sell side and buy side analysts who followed the industry and voted. We were convinced-- We are convinced that this is just a preview of what is to come. A year marked by equally solid performance, supported by intensive demand and the efficient execution of our projects. These elements provide us with a positive outlook for the future. Thank you all for your participation and interest in Cury. Should you need any further information, Cury's IR teams is at the disposal of investors and the market as a whole. Well, that concludes our presentation, and I would like to ask the operator to begin the Q&A session. We will now start the Q&A session for investors and analysts.
To ask a question, please click Raise Hand. If your question is answered, you can leave the queue by clicking Lower Hand. Our first question comes from Ygor Altero from XP. Mr. Ygor, you may continue. Good morning, everyone. Thank you for taking my question. It caught my attention, this, REF margin level that's going up, although you mentioned that, the inflation of labor is under pressure. Is this increase you see, being enough to offset that? And the second question is about the main challenges in engineering to deliver on the new growth cycle of the company, that went from a company of, BRL 5 billion to BRL 7 billion to BRL 8 billion in the future. If you could share your motivations and challenges, it would be great. Thank you. Good morning, Ygor. Good morning, everyone. This is João Mazzuco speaking.
This REF comes from the contribution of launches. We always look for transactions in order to have higher margins. There were very good transactions that sold very quickly, so we had a record high in sales in the second quarter. According to SoS, Cury has an impact of REF margin on launches that's comes much earlier. So that's just an issue of a season of good launches that came with very good sales records. As for the second point, I turn the floor over to Fábio to talk about the growth challenges. Good morning, Igor. Engineering growth challenges for growth. I think the main challenge is labor. We are going through a process that is hard to find good labor, and we are undergoing verticalization in the company, talking to contractors. So the main topic today is equipment, elevators.
There are some points in engineering that needs adjustment, and labor is a point of focus because we need to grow, optimizing our processes to grow consistently. Okay, that's very clear. Thank you, Fabio. Our next question comes from Mariangela de Castro from Itaú BBA. You may continue. Good morning, everyone. Thank you for the presentation, for the question. I would like to know about the expectation for the board meeting tomorrow. Do you expect any changes in second-hand properties? Is anything specific we should monitor for tomorrow's meeting? And also, your vision for the second semester. I know that Cury's decreases its launches in the second half of the year, but what should we expect for the second half of 2024? Thank you. Good morning, Mariangela. This is Ronaldo Cury speaking.
As for second-hand properties, the normative ruling yesterday restricted for level three, bracket three, the amounts. I believe this is positive because it leaves more money to fund new units. As for additional amounts, the meeting of the committee will be tomorrow, August 8, so we hope this voting of additional amounts will be voted for an additional funding of BRL 21 million-BRL 23 million, which we believe will be enough to finish the year. As for the second half of this year, I'll turn over the floor... Okay, to Fábio. Yes, you are right. We recently, we've opted to be closed to work harder on the first and second quarter of the year.
We believe that this year, things could be a bit different, because we have recently launched a program in the end of last year, so we know that the moment is right and demand is high. So I cannot talk about the fourth quarter, but I can say that in the third quarter, we'll be as strong as we did in the second quarter. This is what we can say for now, Mariangela. Okay, that's very clear. Thank you. Our next question comes from Pedro Lobato, from Bradesco BBI. Pedro, go ahead. Good morning, everyone. Thank you for the question. First question relates to your portfolio of direct sales. We've seen a substantial increase year-over-year, and I would like to understand what do you expect for this type of sales and the rates, the income profile of customers?
The second question is whether you see room for launches at the lower brackets of the program looking forward. Last year, this bracket amounted to 20% and there's almost nothing now when you look at the mix. So do you look at this option for the future? Thank you. Good morning, Pedro. Speaking of direct sales, direct sales, we've always emphasized that it is much stronger in developments of higher value. This year, we had launches at Porto Maravilha, in Rio de Janeiro, and where there is a higher demand for direct sales than we would have in smaller developments, such as Zona Leste, for example, of São Paulo. So this is a result of our portfolio of launches. Sales are very healthy. We like that. We have a collateral of the property throughout the cycle of payments.
So this is a profile of customers and that have more income, and the rates are that established during construction, and after keys are delivered, IPCA plus 12%, so it's very healthy. Now, talking about developments for lower brackets, Pedro, this is Fabio speaking. We are launching a smaller amount of portfolio. In this quarter, we'll launch phase three of Campo Grande in Rio de Janeiro development. The review at the lower brackets could increase our willingness to go back to those brackets because we believe that higher brackets are more profitable today, but we'll never give up on the lower ones. We still have some lands, pieces of land for brackets one and two available.
But as soon as we see that the changes on those brackets could improve the profitability of developments, we could increase our participation in those brackets. Okay, thank you, Fabio and João. Have a good day. Our next question comes from Luna Bias from UBS . Okay, these are two questions, says Luna Bias. "First, I would like to have some color on the product mix. According to analysts, we see an increase in average prices inside Minha Casa, Minha Vida program and outside of it. We would like to understand if there's a movement towards the higher brackets, which would not be translated into higher margins, according to our understanding. If you could also comment, what's the average income of buyers for each product offered by Cury today?
And my second question, which is a follow-up on margins, is about gross margin, whether if the increase in the average price is by mix of products, we understand that the gross margin, the REF margin, should be stable. So we were not so sure why this recognized margin is growing, and if the average price increase is due to prices, we understand that the gross margin should go up. So why is it not growing at the same pace? Thank you." Hello, Luna. This is João speaking. Our mix of products has been kept constant, basically. Cury is delivering what it has delivered in recent years. So in our conversations, we just provide more of the same. So the mix is Rio de Janeiro and São Paulo, two-thirds and one-third, with the representativeness of Porto Maravilha remains strong.
We're still focused on bracket three and above in the My House, My Life program, and so that remains unchanged. Nothing has changed much in that sense. How does that translate into margins? I didn't quite understand your interpretation of the gross margin. The average price is very related to the project that's being launched. I can have average sales prices higher in a quarter due to those launches, and lower in the following quarter. If you look historically, you can see that. However, that doesn't necessarily brings fluctuations to our gross margin... or REF margin. So what we had in terms of growth of margins in the quarter, both in the REF margins and gross margins, is related to launches that had strong margins in this period, and that has an impact in both areas, because launches contribute a lot to the revenue of the quarter.
This is a product in which I recognize more margin and more revenue, because the initial focus is high, the ideal fraction of the land. So these are the factors that have contributed a lot to margins in this quarter. I hope I've been clear in my answer. Yes, it's clear, Mazzuco. Thank you. Our next question comes from Felipe Leiser from Citi. Good morning, Fábio, Ronaldo, and João. I would like to understand what's the with the new rule of Caixa for releasing funds for new contracts. Caixa no longer deposits the funds, and only deposits a part of the property, which increases funds. So if you could give your point of view on this new rule and the impact for 2025. Thank you. Well, this is exactly what you said.
When we make a new sale and we transfer this customer, Caixa used to deposit the funds in our account, and the funds were blocked until the end of the contract. Now, Caixa deposits when we register the contract, so that increases the receive, the period to receive by 30-45 days in São Paulo, and 30-90 days in Rio de Janeiro. Well, this is the period it takes us to register a contract. This has no impact on the liquidity of the company, because Caixa deposited the funds in the account, but the funds were blocked. So nothing changes in terms of liquidity. It changes in the recognition of, cash in the balance sheet, because as the deposit was made, that was recognized as cash, but as the deposit is no longer made previously, that's not recognized as cash.
So that just includes a delay in the cash recognition of the period due to the time it takes to recognize and therefore re-register the contract, but no change in liquidity. Okay, thank you. The next question comes from Elvis Credencio from BTG Pactual. Mr. Elvis Credencio, you may proceed. Okay, I have two questions. First about sales. If you could give us an update on the sales performance in July, and what do you expect for the third quarter? And the second question is about the new seasons of launches. You expect a robust growth for the future, but what about the current land bank? I know it's grown. It has grown a lot. How do you see the quality of the land bank for the future?
Once the company changes it, the level in terms of launches, how do you face this challenge of maintaining a land bank of such high quality into the future? Thank you. Good morning, this is Fábio speaking. The third quarter, we started with two launches, very well, very strong. Sales at the same level we ended the second quarter. This is why I said in one of the first questions that this year, we expect to have a stronger third quarter than in previous years, so more in line with the second quarter or first half of the year. So in terms of sales, again, I believe it's a lot related to the age of the program. Recent changes to it, strong demand, and as we said, we had a very good land bank.
In the last eighteen months, we are close to BRL 18 million in PSV of land bank to support the years of 2025, 2026, 2027. In terms of replacement, we are close to ideal level of a land bank to support us for three years. In terms of quality of land bank, this is the main number one thing we look for at the company. I'm in charge of purchase of land since day one. I believe we have to buy land well, and the quality of the land bank of Cury is the main point, so that the entire process may be completed well in terms of sales, transfers, and construction. So land bank is very important, but we are in a very good position overall for the next three years. Okay, thank you, Fabio. That's very clear.
Our next question comes from Rafael Rehder from Safra. Mr. Rafael, you may continue. Hello, thank you for the question. I have two questions. First, about the tax reform, I would like to understand what is the impact you see on Cury based on the mix of construction and input, and what do you believe you'll be able to benefit from in terms of tax benefits? And the second question is a follow-up on land bank, where there were impressive figures this semester on an all-time high, by 10%. I would like to know if you could give more color on the land you're buying, the neighborhoods. Thank you. Let me talk about the tax reform first. We know that the tax reform will have different impacts according to the industry and the sales level of the developer and products.
For us, we see a neutral effect. We see that if you look at the tax rate of the industry as a whole, today, not only RET, but the whole chain. And when compared to the new rates after the tax reform, for our level or bracket of products at the average ticket, we see the effect as neutral. But there may be changes still, so it's early to say what will actually happen. As for what we'll be able to allocate as credit, there were some initiatives of the industry, along with the tax reform team, in which we were benefited from a very important point. Not only having credits from engineering and construction costs, we'll be awarded credit for all the expenses.
Marketing, we know that land will be given a special treatment, so there's list of expenses that we'll be able to use the credits. And a point that will affect us and the industry as a whole is the complexity of the calculation of this allocation of taxes to be paid. Because one of the purposes of the tax reform is to simplify taxes, but for our industry, it will complicate it. Because today is the rate and period, but in this new tax regime, it will be more complex. But in terms of rates, we see that for our bracket and for our rate, and our type of product, the effect is neutral. Oh, Rafael, talking about land bank. The increase in land bank in Rio de Janeiro and São Paulo have been through changes in the master plan.
There was a major review in the master plan in São Paulo, and a new master plan in Rio de Janeiro. So that boosts the availability of land, and we benefited from that in the last year, and we're making the most of this moment increase our land bank. This is one of the main reasons for the significant increase or growth of our land bank. We were more assertive, a series of new processes were created in the company, and other factors. But the main reason for this increase is related to the greater availability provided by the review of the master plans in São Paulo and Rio de Janeiro. Okay, perfect. That's very clear, Fabio. Thank you. Our next question comes from Antonio Castrucci from Santander. Hello, everyone. Good morning. It's more of a follow-up about the first question.
If you talk about the engineering challenges associated to growth that you expect, how is the company preparing to overcome such challenges? In addition, I would like to understand whether you see additional challenges in the sales front to support the additional growth of launches looking forward. Good morning, Antonio. Speaking of engineering, first, as I said, our main problem today is labor, shortage of labor. So since we've been working with contractors for many years, now it's, they're harder to find. So the first thing we're doing is to verticalize some areas. Installation, today, Cury coordinates and manages the construction works. Other areas are also not in the hand of contractors. Other activities, we're optimizing to need less labor.
So the focus today is to decrease the need of labor, or if there is such a need, for it to be under our umbrella. So this is how we're dealing with the growth of the company. As for the things that pertain to that, such as equipment, the delay in the delivery of elevators, these are one-off events and one input or another. I mean, this is something we have to deal with, as we've been doing, but our main approach is regarding labor. As for new launches, this covers several areas of the company: new business, development, marketing, legal. So in the beginning of the year, we make a plan and prepare to support what will be done in the year. This is challenging, but this is something we've been doing on a yearly basis to support the growth we've been delivering. Okay, excellent, Fábio.
Thank you very much. Our next question is from Jonathan Koutras from J.P. Morgan. Good morning, Fábio, Ronaldo, João. Congratulations on the quarter results. I have two questions. First, cash generation in the first quarter, second quarter, if you could share the expectation, given the ramp-up of construction. And we see the sales of BRL 300 million. Do you see this as stable, or do you believe the units outside the program will increase their share? Thank you. How are you, Jonathan? Well, cash generation was strong. We know that there is some seasonality in the first quarter, and we've been very consistent in delivering a strong cash generation, starting on the second quarter onwards. And year-on-year, of course, we're growing, and the cash generation grows with growth. And this year, the goal is for this to remain the same.
So we can expect a third and fourth quarters with a cash generation in line with the growth in operations. We've talked about the impact of the new model of Caixa, which will have an impact on cash generation, but that's easy to explain. As for the sales mix, sales above BRL 350,000 will keep the same mix. We always like to remind you that even sales above those amounts are also made with the credit and associate-- from associations, and this brings the same contribution to our cash generation, and that doesn't change anything. So the nature of Cury's operations remains the same. So you may expect that the volumes, the contribution of products above BRL 350,000 will keep the same contribution to our sales volume. Okay, thank you. The Q&A session has now ended.
This ends the Cury Construtora Video Conference Call. We thank you all for your participation, and have a good day.