Good morning, and thank you for waiting. Welcome to Cury Construtora's conference call to discuss the first quarter of 2021 results. With us here today, we have Mr. João Mazzuco, CFO, Mr. Ronaldo Cury, IRO, and Fabio Cury, CEO. We would like to inform that during the company's presentation, all participants will only be able to listen to the call. We will then begin the Q&A session when further instructions will be given. In case you need any assistance during the call, please request the operator's help by pressing star zero. We also would like to inform that the conference call in Portuguese will be presented by the company's management, and for the English conference, there will be simultaneous translation. This event is also being broadcast simultaneously on the internet via webcast.
Before proceeding, we would like to mention that forward statements are based on the beliefs and assumptions of the company management and on information currently available to the company. They involve risks and uncertainties because they relate to future events and therefore depend on circumstances that may or may not occur. Investors and analysts should understand that conditions related to macroeconomic conditions, industry, and other factors could also cause results to differ materially from those expressed in such forward-looking statements. I will now turn the conference over to Mr. Fabio Cury, who will start the presentation. Please, Mr. Fabio, you may proceed.
Good morning, everyone, and thank you very much for being with us on another Cury's conference. Together with me, we have Ronaldo Cury, who is our IRO, and João Mazzuco, our CFO.
During the call, we will cover the main highlights of Cury's operational and financial performance for the first quarter of 2021, and at the end, we will open to questions and answers. After a historical performance in 2020 for Cury with record results and the completion of the IPO process, we started a new cycle from the year 2021, during which we will look for another remarkable year for the company. There's no doubt that that is the direction that our first results of the year point to. From an operational point of view, we present historical results. A volume of launches and net sales of BRL 590 million, representing a historical record for a first quarter in terms of launches and an absolute record for all operating quarters in the company's history with regard to sales.
In addition, another great news was the maintenance of the SOS at extremely high levels, reaching 43.5% in the quarter, an increase of 9.2% in relation to the first quarter of 2020. It is also important to mention that the figures for the last 12 months show that the company has already reached the important milestone of BRL 2 billion in launches and reached the mark with a SOS of 69%. As financial highlights, our net revenue reached BRL 339.3 million, gross profit of BRL 120.3 million, and net profit from Cury, BRL 50 million. Growth of 49.3%, 54%, and 7.7 x or 669% respectively. The adjusted gross margin was 35.5% and net margin 14.7%, increasing 0.8% and 11.9% respectively.
The excellent results in the first quarter of 2021, which we will detail in the course of the conference call, is the first step to go ahead to a great year. I would like to give the floor to Ronaldo Cury to comment on our operational highlights for the quarter. Please, Ronaldo, you may proceed.
Good morning, everybody. Moving on to slide five, I will quickly explore the highlights of our operating performance this quarter. In the first quarter, we reached the mark of BRL 590 million in launches, an increase of 275% compared to the first quarter of 2020. There were a total of six projects launched in the year, where three are in São Paulo and three in Rio. They were Orla Recreio, My Miguel Yunes, Completo Guanabara, Dez Ourives, Blue Lyne Pirituba, and Alto São Cristóvão.
Despite brief standstills caused by COVID-19, we kept the planning for the launches unchanged, reaching this record number for the first quarter and having managed to launch them with great success in sales, as we will explain below. Demands continue to be very strong, both for launches and for sales of inventories. This inventory remains at very healthy levels with only BRL 17 million of PSV in inventory completed, which would represent just a few days of sales. I will now move on to slide six to explore the sales performance in the quarter. Driven by strong demand, but also with well-planned, well-located products and our competent sales force, we achieved a growth of 147% in our net sales with a total of BRL 590 million in the quarter. This figure represents an all-time record in real estate development activities, the best quarters in sale in Cury's history.
Another important milestone, as Fabio pointed out, is the BRL 2 billion in launches that we have already reached when we analyze figures for the last 12 months. We reached this level of launches with SOS remaining at around 69%. It is also important to note that all this strong launch and sales performance was not achieved at the expense of the speed of sales levels central to Cury's thesis. Quite the contrary, we kept our SOS high, reaching 43.5% in the quarter, and 69% when we look at the last 12 months. Moving on to slide seven, talking about Cury's land bank. After several cycles of constant growth, we maintain levels in line with those observed at the end of the year, keeping land bank in the range of BRL 10 billion in potential PSV, even considering the high level of PSV launched in the quarter.
On the right corner of the slide, I show you our operating cash generation. Throughout the quarter, even with all the seasonality effects inherent to the beginning of the year, we reached a positive operating cash generation of BRL 8.4 million. Now, I give the floor to our CFO, João, to give more details about our financial results. Please, João, you may proceed.
Good morning, everybody. Moving on to slide nine, our net revenue reached BRL 339 million in the first quarter, which represents a 49% growth compared to the first quarter of 2020. Revenue marginally lower than the fourth quarter of 2020 in a period that historically suffers from the seasonality in the sector. I believe that it's important to say in our gross profit that has grown 78%, our gross profit compared to 2020.
We have been showing continuous growth, not only in gross profit, but also in gross margin every quarter of 2020. Which still shows a growth of 1.1% in relation to the first quarter of 2020. We have a drop in gross margin in relation to the fourth quarter, impacted here by two factors. First, and most importantly, we made budgetary adjustments in the construction works. Second, I return to what already was highlighted in our previous presentation. It would be challenging to maintain the gross margin of the fourth quarter of 2020, which benefited from the launch of some projects that have a remarkable margin, such as Urban Barra Funda 2, Dez Taipas, Dez Ipiranga 2, and Dez Canindé. All of them with locations in São Paulo. Slide 10.
We highlight the net profit that reached BRL 52 million in the first quarter of 2021, which represents an increase of 238% in relation to the profit of BRL 15.4 million in the first quarter of 2020. It is important to note that the net profit attributable to the parent company represented 96% of the results compared to 91% in the fourth quarter of 2020. The net margins of the activity and the parent company's amounts were 15.4% and 14.7%, respectively. The latter represents an 11.8% increase compared to the first quarter of 2020. Both suffer the effects of reducing the gross margin compared to the fourth quarter, which we see that in the last line. Showing some aspects of our indebtedness on slide 11. Our gross debt closed the quarter at BRL 281 million. For practical purposes, the same level as on December 31, 2020.
There were nearly no changes in corporate debt in the form of amortization or taking on new ones, which ended the quarter with a balance of BRL 270 million, and there was an increase of only BRL 3 million in financing for production. Our amortization schedule is predominantly long-term, as shown in the graphs. We kept solid liquidity, which translates into a net cash position of BRL 155.9 million on March 31 with a leverage that is negative at 29%, measured by the ratio between net debt and net equity. Slide 12 now. After the effect of the IPO and increase our shareholders' equity, which implied a drop in our ROE, it already shows growth in the first quarter of 2021 measured on the average shareholders' equity in the 12 months period, closing the quarter at 53.8%.
It is worth mentioning that a dividend distribution of BRL 115 million has already been approved at the annual general meeting, which will influence on our return on average equity in the coming periods. Finishing my part, as we always like to stress that our differentiated ROE is the result of a well-executed strategy that seeks to maintain an operation with low use of equity, generating cash, and effectively remunerating its shareholders in the form of dividends. Here I give the floor back to Fabio.
Thank you, João. Thank you, Ronaldo. Another quarter of great results for Cury. A great first step towards building a great year. Of course, there are still a number of challenges to be addressed, and regarding such challenges, our strategies and developments expected for 2021, I would like then to highlight some central points about strategic targeting. Our strategic direction remains unchanged.
We believe in a model of low cash exposure, low use of equity, in which the projects individually present self-sufficient cash flows. We guarantee the functioning of this mechanism with our golden rules, and the main ones are purchase of land through exchange or through cash installments over the long term, with a grace period for the approval of projects, and sales and fast transfers, high SOS, guaranteed by Cury's unique sales strategy and team. The focus on geographic operations with the prevalent performance in the metropolitan regions of São Paulo, Rio de Janeiro, and Campinas also follows as we always had. We believe that there is still a large space for growth in the three markets mentioned, more than enough to supply the robust growth projected by the company for the coming years. These are the regions with the highest concentration of income and demand in our niche.
In addition to being regions in which we have in-depth knowledge of the market. It is also worth mentioning the company's movement in the search for trend, centrally located land in prime regions of the city where we operate, which will continue throughout 2021, in line with Cury's strategic focus of operating in the upper reaches of the Casa Verde e Amarela program, and also look for projects at the first price level above the program. Recent examples are projects launched in neighborhoods such as Ipiranga and Barra Funda in São Paulo, and São Cristóvão and Recreio dos Bandeirantes in Rio. About market environment and competition. Throughout 2020, with a great pipeline of offers in the sector, an increase in competition was expected. A good part of the offers ended up not coming through, and those that did have, as well as those of Cury, a prevalence of secondary characteristics.
That way, we see little change in the competitive environment in this regard, even pointing out to a more mature market than in previous cycles, with all players operating responsibly. On the other hand, small and medium players suffered considerably more with the restrictions and difficulties brought by COVID-19. Thus it seems reasonable to assume that both Cury and most of the companies listed in the sector, which changed in market share throughout 2020, which would be a trend that we will continue to observe in 2020. On the demand side, we continue to have extremely positive signs as the results for Q1 2021 demonstrate. Sales continue at a very strong pace, with records being broken every quarter.
We understand the significant and growing housing deficit in the country as the main driver of this robust demand, and we understand that this constructive trend for the sector should continue throughout 2020. Another relevant factor is the current movement of real estate credit in Brazil. Even with the shift of the long interest rate curve and the recent increase in the Selic rate, Brazilian federal funds rates, the levels that have shown in rates lead us to continue to see a very constructive scenario for real estate credit in 2021, and consequently, an additional driver for the sector's demand. On inflation and civil constructions input, we observed throughout 2020 a significant increase in some of the essential inputs to civil construction. The main input to show significant increase was steel.
The company took some protective measures, as we have seen in our last message, using aspects inherent to our strategy, such as the performance in higher income groups with the housing program, which allows us to update our prices to face the increases in price input. Pressures on steel prices, however, continued in 2021, and apparently will follow the construction market environment throughout the year. Thus, we believe it is necessary to revise our budgets, which we have already contemplated in the results for this quarter, maintaining even so healthy levels of gross margins and in line with the company's business plan for the year.
The company will remain diligent in the assessment of such scenarios in order to always act when possible to preserve margins at constructive and healthy levels for our shareholders, but also to keep investors and the market in general aware of the real situation according to our internal assessments. Now, about execution challenges. To achieve our ambitious internal launch and sales goal, it is clear. In addition to the challenging situation posed externally, we have our own. With a robust land bank in the range of BRL 10 billion in potential PSV, we are therefore in a comfortable position to leverage growth in the coming years. We are therefore in a moment to seek the replacement of land launched in the next cycles, since the great growth in volume of this land bank took place over the last two years.
From the engineering point of view, there is also challenge to be faced, either by increasing the volume launched and sold or by the scenario of the input that we detailed above. At this point, our comfort lies in our track record. To date, with less than 15,000 simultaneous units under construction, we could double production and still be at levels already delivered in the past. When operating range 1 of the housing program, we reached a volume of 30,000 simultaneous units under production, which therefore offers the necessary comfort to continue accelerating our projects in 2021. The challenge on the sales side is perhaps the most important for this growth cycle of the company, given the impeccable record of high levels of sales and sales speed, our SOS.
We work tirelessly, and we continue throughout the year with great efforts aimed at maintaining these levels that are central to our thesis. Thus, the strengthening and training of the Cury Vendas team are top priorities at the moment, including focusing on all online sales efforts, much intensified and very important throughout 2020 and 2021. We conclude by thanking immensely our team, our suppliers, our partners, our customers. In short, the entire ecosystem that works together with us and allows Cury to achieve results as the one in first quarter 2021. The maintenance of our way of running the business of the strategic pillars and of our seriousness with which we face the responsibility of maintaining a company with the highest levels of margins and returns in the sector are characteristics that our investors can count on throughout the next cycle and can always expect from the Cury management team.
Well, that ends our presentation, and I would like to ask the operator to start the question-and-answer session.
Thank you. We will now begin the Q&A session. If you have a question, please press star one on your touch tone phone, and if at any point your question is answered, you may just press star key to remove yourself from the queue. Questions will be taken in the order they are received. We do ask that when you pose your question, that you pick up your handset to provide optimum sound quality. Our first question come from Gustavo Cambauva from BTG Pactual. Mr. Gustavo, please, you may proceed.
Good morning. Good morning, everyone. I would like to ask a question in terms of sales price. I would like to understand first if you are actually being able to increase a bit the sales price with your products.
And if you could explain a bit, if you can pass that down, maybe not everything, but a part of it, and how that stands. The second question is in terms of that as well, but related to the profile of buyers based on the fact that you supply to those also that are a bit higher in the Casa Verde e Amarela program. The locations also that is a bit more premium in terms of the land that you work with, if that makes a difference also to be able to have a higher price. So the question is that. I want to understand what is the elasticity of your buyer and how sensitive they are to some potential increase of price, and if it is possible to keep, at the end of the day, this high SOS as you have shown in the last quarter. Thank you.
Good morning.
Good morning, Cambauva. Good morning, everyone. Yeah, that is a good question, and that is exactly the strategy that Cury has been taking to try to go a bit beyond the lower range of the program and get premium regions in São Paulo, Rio, and Campinas. So we are looking to the central regions. Yes, we have been passing down this increase of the products. We have been able to pass that down. A good example of that is the new launches we had in Rio, Recreio dos Bandeirantes, São Paulo, Miguel Yunes, a region in the south zone of São Paulo. So these are regions that are more centrally located with product that is at the top of the program, part of the program, some even above the program, over BRL 240,000.
The profile of the client are those that have income over BRL 5,000, reaching BRL 6,000 -BRL 7,000.
Where the characteristics of these clients are the ones that are able to have a possibility of absorbing more the adjustments in the market over the installments they have and having the index of the installments there, where we can have even direct tables being captured and applied with our products. This allows us not to be vulnerable to these products, where we would have to not adjust, which was the case before. So our strategy has been that. It has been a winning strategy to have products in central region where we can have a mix that a part is in the program and another part above the program, where we can even reach BRL 300,000, where we can have a higher price, and even doing direct sales and working that way. João will add to that.
Good morning. Good morning, everyone.
Just to add an important indicator, our volume of launches in the sales of the first quarter increased 4x compared to the first quarter of 2020. The fourth quarter also was very close to our first quarter now. These were the quarters of launches of more premium programs or projects. These are the consumers we are talking about, the ones that are even able to have savings account, because you need to have that to be able to get this level. Also, we have been quite successful in anticipating some of the installments for direct sales that do not want to work with the IGPM rates. Today, we have been working more and more, and it seems like it is superior to what we have had in the past.
Good morning, everyone. This is Ronaldo Cury. I will just bring you some statistics.
In the first quarter, we sold 25% above the Casa Verde e Amarela program, 10% through direct sales, and 15% through SBPE.
Great. Thank you for the answers, and have a good day. Good morning, everyone.
Nicole Inui from Bank of America. Nicole, you may proceed.
Thank you. Good morning, Fabio, Ronaldo, and João. Thank you for the question, and congratulations for the results. I would like to talk about the increase of input price. What we have been hearing is that many have been buying input and product in advance. I would like to know from your view if you see some scarcity of product in the market, if there has been some impact in terms of the pace of construction to you or of other players in the market. This increase of consumption, and if you have any lack of product.
The other point that I wanted to know about you, if you can talk about Campinas. It has always been an area where there has been great potential. I want to know how you see that in terms of launches in the Campinas region from now and into the future. Thank you.
Good morning, Nicole. It is great to be talking to you here. First question about scarcity of material in the market. We have not been seeing it. Our greatest concern is to really adjust the price, especially steel. This is where we are at. We have been anticipating the purchase of steel in March. Actually, in April, we had a large purchase to anticipate and minimize the future increase. We have been doing this systematically, but we do not see a scarcity issue in the market.
That is not the case with Cury, maybe because of the partnerships we have with our suppliers. For the Campinas region, maybe 2021 will be our turnaround since we already captured many lands. We have been having a learning process where we have loyalty more and more. We have much still to do in terms of a continuation of our work there in the month of May, where we have one specific for this year to be launched. We will continue so we can really be at full speed, as I call it, to be constantly at 200, 300 launches in the region that we want. What I felt was there was a discontinuity of launches in the region. We would launch in one year, and then after a year, we did not have.
I believe that from 2021 on, we will finally have that continuity every year to have a volume that is continuous. From what we have already planted in 2019, 2020, in terms of what we purchased. This year, we will have 2021, 2022 and on, we will have a continuity of launches in the Campinas region that will make us more solid in the region. That is an important point for us to definitely strengthen our third market, which is Campinas.
Okay, great. Thank you.
Our next question comes from webcast, [Paula Campos] , Inter Asset. Her question is: I would like to know what is the company's view in terms of the recent measure of vetoing the RET for Casa Verde e Amarela program to understand if the RET can still be used through some other legal way.
If not, how will that be an impact to the margin of the company?
Thank you. Thank you for the question. We will not really see that type of impact because all of our launches already use one regimen that does not have that impact. It will impact mainly companies that work with range one in the program, but that is not us, and who does not go through the regimen complete.
To have questions, just press star and one. Again, if you want to ask questions, just press star one. Since there are no more questions, this concludes our Q&A. I would like now to pass the floor to Mr. Fabio for his final remarks. Please, Mr. Fabio, you may proceed.
Thank you everyone for this call. We will see you all in our next call in June.
We wish you all a better moment, all vaccinated, and that we can see each other then. Thank you, everyone, and see you then.
This concludes