Good morning, ladies and gentlemen, and welcome to Cyrela Brazil Realty S.A. second quarter 2023 earnings call. Today with us, we have Mr. Raphael Horn, our CEO, and Mr. Miguel Mickelberg, CFO and IRO. This call is being recorded and simultaneously interpreted. You can hear the translation by clicking the Interpretation button. To those listening to the English translation, you can mute the original audio by clicking Mute Original Audio. Also, you can find the slide deck in English on the company's investor relations website at www.ri.cyrela.com.br. During the company's presentation, all participants will be in a listen-only mode. After the presentation, we will hold a question-and-answer session. To ask a question, please click the Q&A icon and enter your name and organization. When your name has been called out, a request will pop up on your screen to unmute your microphone before you can ask your question.
We would like to inform you that any statements that may be made during the call related to Cyrela's business perspectives, operating and financial targets, are all projections made by the company's management that may or may not occur. Investors should understand the political, macroeconomic, and other operating factors may affect the future of the company and lead to results that differ materially from those expressed in such forward-looking statements. To open Cyrela's second quarter 2023 earnings call, I'd like to turn it over to Mr. Raphael Horn, our CEO. Mr. Horn, you may proceed. Good morning, everyone. Cyrela delivered solid operating and financial results in the second quarter of 2023, consolidating a good performance for the first half of the year. With the macroeconomic scenario converging to a better outlook for the sector and for the country, the company was successful in executing its strategy.
The company launched 17 projects in the quarter with a total PSV of BRL 2.7 billion, totaling 25 projects and BRL 3.7 billion in the first six months of 2023. From the sales perspective, BRL 2 billion was sold in the quarter and BRL 3.2 billion in the year, highlighting the speed of sales of the launches, which was 40%. We emphasize the iconic project On The Sky Cyrela by Yoo, launched in June 2023. It is located in the west zone of the city of São Paulo with a PSV of BRL 563 million, and the project had approximately 60% of the units sold in the quarter. The operating performance influenced the financial results, which allowed the company to reach more than BRL 1.6 billion in net revenue in the quarter, totaling BRL 2.9 billion in the year.
The gross margin reporting was 32.3%, presenting a slight improvement when compared to previous periods, and the net income was BRL 279 million, with a net margin of 17.1% and ROE of 13.8%. Furthermore, there's also a level of indebtedness, with a net debt over equity indicator at only 5.9%. That all leaves the company in a very comfortable position for its next steps. It is important to note that the company remains cautious and alert to the best market opportunities to continue within its intended business plan for the coming quarters. We're aware that the challenge continues and would like to thank our clients, stakeholders, and other stakeholders for their trust. We'll now talk about our operating results. Thank you, Raphael, and good morning to everyone. Let's start on slide 5. We'll address Cyrela's launches.
In the second quarter of 2023, we launched 17 new projects with a PSV of BRL 3.5 billion, 51% higher year-over-year, and 161% higher quarter-over-quarter. The company's stake in the volume launched in the quarter was 78%, totaling BRL 2.7 billion in launches in the Cyrela stake. Stake, pardon me. Excluding swaps, the volume launched in Cyrela stake was BRL 2.5 billion in the quarter. On slide five, we'd like to highlight the On The Sky Cyrela by Yoo in the city of São Paulo with a PSV of BRL 563 million. The project was launched in June with 60% of the units sold. On Slide six, we'll talk about our sales performance.
In the quarter, pre-sales came to BRL 2.5 billion, 55% higher year-on-year and 62% higher quarter-on-quarter. Cyrela's stake in the volume sold was 81%, totaling BRL 2 billion. Excluding swaps, sales were BRL 1.8 billion in Cyrela stake. On Slide 7, we'll address our sales speed. The company's SOS in the last 12 months was 48.1%. Looking at the sales speed by launch period, projects launched in the 2Q 2023 have been 40% sold. On Slide 8, we'll talk about our inventory. At the end of the quarter, inventory at market value totaled BRL 9.8 billion, 12% higher quarter-on-quarter. In Cyrela's stake, the inventory totaled BRL 7.7 billion. The change in our inventory can be seen in the chart to the left.
On Slide 9, we'll talk about our finished units. We sold 11% of the finished units at the beginning of the period. Adding the inventory of projects delivered along in the quarter or along the quarter, pardon me, pricing of units and market value, finished units remains stable quarter-on-quarter at BRL 1.3 billion and BRL 1 billion in Cyrela stake. We'll talk about delivered units on Slide 10. Cyrela delivered 12 projects in the quarter, with a PSV of BRL 1.3 billion. Year-to-date, we have delivered 22 projects with a PSV of BRL 2.4 billion. On Slide 12, we'll talk about our financial results. Net revenue was BRL 1.6 billion in the quarter, 31% higher quarter-on-quarter, and 27% higher year-on-year.
Year to date, Cyrela's revenue was BRL 2.9 billion, 18% higher year-over-year. In the second quarter, the gross margin was 32.3%, compared to 31.3% in the second quarter, 2022, and 30.7% in the first quarter, 2023. In the first half, the gross margin was 31.6%. On slide 13, we can see our net income and profitability. Our net income was BRL 179 million in the quarter, compared to BRL 151 million in the second quarter, 2022, and BRL 164 million in the first quarter, 2023. Year to date, the net income, or rather the income, stands at BRL 443 million, 42% higher than in 2022.
Our return on average equity, the net income of the last 12 months over the average shareholders' equity was 13.8%. On slide 14, we'll talk about our debt. Gross debt at the end of the quarter was at BRL 4.7 billion. The cash position was BRL 4.3 billion, thus our net debt was BRL 275 million. 75% of the total gross debt is long-term. Our net debt over equity ratio was 5.9%, 0.6 percentage points lower quarter-over-quarter. The low debt level confirms Cyrela's financial solidity and puts us in the right path to maximize return to shareholders. On slide 15, we'll talk about cash generation.
In the second quarter, 2023, we had a cash generation of BRL 22 million, as opposed to the cash consumption of BRL 48 million we had in the second quarter, 2022, and the BRL 35 million cash consumption we had in the first quarter, 2023. Year to date, cash consumption total was BRL 13 million, below the cash burn of BRL 100 million in 2022. Raphael Horn and I will be available for questions now. We can go on to the Q&A session. Thank you. We'll now start the Q&A session. I'd like to remind you that to ask a question, you can click the Q&A icon, write your name and the company you're representing. When your name is called out, a request to unmute your microphone will pop up, and then you can unmute your mic and ask your question. The first question comes from Gustavo Cambauva, BTG.
Good morning. I have two questions. The first has to do with Vivaz and Minha Casa, Minha Vida. How is it that you see that after the changes that have been, and what are your expectations for growth in Vivaz? Your, your perspectives on Minha Casa, Minha Vida after the changes, and this could be for the medium term, once things are more established or more stable with Vivaz. My second question also has to do with Minha Casa, Minha Vida. Vivaz is growing. Automatically, Cyrela is more exposed to Minha Casa, Minha Vida when you combine Vivaz and the other JVs. What are your thoughts? Would it make sense to maybe reduce exposure in other JVs, any Plano, once Vivaz is growing? How exposed Minha Casa, Minha Vida is for the company in the medium term for, for the company? Hello, Cambauva. How are you doing?
We buy landlord per landlord. We're not very focused on the on the segment. We like very high end. We know how to do mid-end and low-end as well, and thank God, we have a very competent team to buy landlord, right? So we don't really think about how much it's going to be Vivaz next year, or... You know, these discussions are much more as they come as part of the plan of the company. So we don't really have an expectation of what Vivaz is going to be. We're concerned about the total results, and we're concerned about doing our products as best as we can. So I can't really tell you anything about how big or how small Vivaz is going to be in the coming years.
That's going to be really related to our land bank, plots of land that we decided to buy, than any specific planning around it. Low-end products are going through a good moment. I speak not only about Cyrela, but also when we look at low-end products from the other players. If there are good opportunities in land bank, we will buy more, but there's no specific strategy. If Cyrela is going to be big in Minha Casa, Minha Vida, once you combine JVs and Cyrela, that's not how I see it. We're big in that segment because we have good partners, we have fantastic partners. We really are lucky. We're big in that segment.
When you look at with us, standing alone, we see it one way, and we also see the way that our partners are doing it separately. We're not going to sell our share with our partners because of that. We're not scared of becoming too big. If that happens, well, I mean, we already are large in that segment because our partners are very profitable, and we're very happy about that. We don't see it like that. There are two different operations. We have our organic operations and our partners' operation. We don't see any segment as one that should have a maximum exposure. We like every segment, and the bigger they can be, the better. That's it. Thank you. All right, that's very clear. Thank you. Have a good day. The next question comes from Ygor Altero from XP. Morning, I've got two questions.
You've got a good sales moment. Do you think this could be an important trigger to continue to accelerate the speed of launches in the second quarter 2023 and in 2024? I'd like to hear what your thoughts are on launches for the second half in 2024, and cash generation is my second point. The company continues to grow. At this rate of growth, can you deliver anything in cash generation? Thank you. Hello, again. Brazil is a challenging country, so we don't get too excited as we don't get too disheartened. We don't say, "Hey, this half of the year was brilliant. We're going to rock." Last year, everyone thought it was Brazil was going to, you know, plunge into a crisis, and we were okay with our pipeline and, and hoping that the macroeconomic situation wouldn't worsen.
You don't really believe it, this is how we, we, we, we tick, right? We, we are land bank buyers. We will put together our plans for 2024 or projects for 2024 as according to the land bank that we can buy. We try to shield ourselves from these fluctuations we see in the market or in our sales, if, if we sell too much in one quarter, we don't think that everything's going to be rocking for the next quarter, if we sell to poorly, we're gonna be crying. We aren't going to be crying either. We're gonna be working 14 hours a day, doing what we love, and whatever else happens, happens either to support us or to be an obstacle. In two months, Brazil worsens its macroeconomic situation again, then everyone is disheartened.
I'll be talking about cash generation now, Igor. At the start of the year, we had mentioned we expected a cash burn this year, especially at around BRL 300 million-BRL 500 million. The operating performance in the first quarter surprised us positively. We had BRL 47 million burnt in the half of the year. We'll probably have a cash burn in the second half of the year, and it should be lower than our forecast for the whole year. Next year, we expect a more neutral cash position. There are many variables to be factored in: land bank, the performance of our inventory and launches. All of that has an impact on our cash generation, so it's a bit too early to give you any more substantiated forecast for next year, but we're gonna go into plan. That's crystal clear. Thank you.
Next question from Pedro Hajnal from Credit Suisse. Good morning, everyone, thank you for taking my questions. I have two, too. As for land bank, I wanted to hear from you how you see the market at this point. Do you have all of the plots of land that you need for the launches of this year or next year, and how much should that represent for the PSV of the projects? My second question, similar to the first, I know this is not the aim of the company, right? To increase volume, but I wanted to understand what your ability would be to grow volume if the market improves. Do you have that card up your sleeve if you decide to accelerate volumes in the second half of this year or next year? Thank you. Good morning, Pedro, this is Miguel.
As for land bank and our pipeline for next year, we basically have our pipeline ready for next year. We expect to have a volume similar to that of this year. Of course, as Rafa said, we look at every plot of land we have, and if more opportunities arise, there should always be room for more land bank to be bought and for us to launch. We have our pipeline ready. As for the possibility of accelerating launches this year, that's something we cannot. The processes for approvals and the bureaucratic perspectives from a legal perspective, is always road. It's always slow, so. You mentioned, right, projects that we deal with. Cyrela has been growing very much in the past years. We have grown every year, basically.
That means we don't have any land bank that we held back and we delayed to launch, so we cannot increase our pipeline for this year, no. If I may ask a follow-up question. The pipeline for 2024, the land bank bought recently, how much does that account for in VG-- in PSV? Pardon me. Well, about two-thirds of our pipeline for the year of 2024. This one-third is probably what we have bought this year to launch next year. Beautiful. Thank you, and have a great weekend. Next question from Tainan Costa from UBS. Good morning, Rafael. Good morning, Miguel. Two points, one around margins and one about the macroeconomic scenario. We see very strong growth year-on-year. How can we see that the margins are going up, but the hedge is more stable or dipping slightly?
Does that have to do with the gross margin of different launch periods, with the gap between them? My second point has to do with the macroeconomic scenario. Even with a slight improvement, there are still many unfavorable points for the sector, right? Considering the interest rates and whatnot. Still you have performed really well, so what grounds this performance? If you could give us some color around these points, that'd be great. Good morning. This is Miguel. As for the gross margin, we did bounce back. We had been saying that we expected gross margin to be higher than we presented in the first quarter. That was a bit of a one-off with margins a bit lower in the first quarter, and the margin in this quarter is closer to our expectations.
We don't see an increase in the short term for the margins. In the medium term, we may have, of course, an expansion or growth, depending on the launches. We are buying land bank in a very good moment. In 2021, we bought land bank, and there was inflation, so it was difficult to produce a good margin back then, but now we have a more favorable scenario. As for REF, we have the margin close to 30. The quarter almost always has a margin lower than the total margin of the project, because you don't know what the swap is going to be at the start. The products that were launched in this quarter, should have a margin of about 34% in the future, but now they show 30% because of swaps.
We have had our margins a bit lower. That was really as per our expectation. Raphael is gonna answer about the second question about the macro. The ones buying are end users. That's the good news. Most of our products are for end users, and they're the ones buying it. Now, macroeconomic scenario is tough, but we're having good performance. Well, the macroeconomic scenario is better than expected, I believe. Brazilian GDP, the economy didn't halt, right? We can't celebrate too much. Brazil is a very unstable country, so we can't be celebrating too much that the macroeconomic situation has improved. Well, the macroeconomic scenario improved, certainly, but it's been hard. It's not easy, but I believe this is one of the reasons why we have a relatively okay performance. Other reasons, well, God always helps us, right?
God always helps us have good work. Everyone makes mistakes. We make mistakes. We left some money on the table in some cases, we could have had even better performance in some of them. We know that the results could have been better in some cases. We are happy, but it can always have been better, right? It could have been better. Cyrela really looks after our clients, and this care we show to them is mutual, right? We really value our brands, and that may also be a reason why we sell better. If you're investors, you're thinking about, you know, buying an apartment, that's great.
We know that the clients will find a product that is really some, is a product that stands out from the market, right? We know that our team is very competent. We have a very hardworking team. We always think about the team, and we always count on God to help us, and the macroeconomic scenario, too. No secret there. We work hard and hope for the best.
All right, Rafael, Miguel, thank you. Eleni Kalil from the Bank of America.
Morning, Rafael and Miguel. Thank you for taking my question. I'd like to talk about the master plan for Rio de Janeiro. Can you talk a little bit about how that could impact you? If that would change the strategy you have in the region. If you can give us some color on the land bank you have in the region, what do you think could benefit you? Thank you. Morning, Eleni. This is Miguel. As for the master plan in Rio de Janeiro, it's still in its infancy, right? There's a lot of uncertainty there. We can't yet have an opinion about it. There is a chance that in regions like the north of the city and the center, we could have some restrictions lifted around the size of the flats and the size of the parking spaces, that could have an impact.
If these perspectives come true, we can have more opportunities in these segments specifically. Again, it's still way too early, and we can't give you a or because we don't really have a clear opinion yet. As for the land bank, excluding Barra da Tijuca, we normally have a short, a short-term land bank, so to speak, right? We don't yet expect a positive impact on that because of the changes in the master plan. All right. Thank you, Miguel. That's very clear.
The next question comes from Bruno Mendonca from Bradesco. Hello, everyone. Good morning. Thank you for taking my question. Around SG&A, we see a nominal dip year on year, even when you include commercial expenses. It is growing less than revenue is growing. Do you have any specific initiatives to reduce G&A? That's my first question. The second question has to do with CashMe, but it could also start off talking about G&A. Where do you think there will be stability, and how big a portfolio can be with this stabilized G&A?
Thank you, Bruno, for your question. We don't have any specific initiatives to reduce our G&A. When we look at our overhead, that's a number that's more difficult for you to, to see because we have consolidations. Well, I mean, we see a slight increase year-on-year, slightly above in inflation, and the volume we've grown in launches and sales has been much bigger, so we really had operating leverage. Looking forward, we believe we'll be able to keep our G&A in check. Our objective is that it won't rise more than inflation. We've been very disciplined in that. We don't expect G&A to have any negative impact on our results. Rafael?
Well, concerning cash, we're, as expected, we have one in fifty in our portfolio. We're not talking about massive, growth. It's ZAR 100 a year, BRL 100 million a year.
Well, we're meeting the, the expectation for the years. We may get to BRL 3 billion in portfolio, BRL 3.5 billion, but let's cross that bridge when we get to it. We have to be careful with delinquency rates. Well, it is a company that we really like, but it's a, a good level for Cyrela. Nothing that any bank should be concerned about.
Can you talk a little bit more about the cash with the low interest rates?
... you had to increase original sourcing rates. This 800 a year, for sourcing. If we have lower interest rates in the future, can we lower that? How do you see that? The rates that we give have to do with the rates that we get. The loan rates have increased in Brazil, so we had to increase our loan rates, too. It's difficult to forecast or predict these things. I can see this 800 a year. If things change, I, I, I can't give you an answer. We don't really know the macroeconomic forecast, right? If the rates drop to 3, then we're currently working with 800 a year. We plan the company for it to be profitable and for it to originate 800 a year.
If we can originate 1.2 a year, that's great, but if we, we count with 800, we're good. We're not fortune tellers. You may, you may think, we are, but we're not. We plan things simply because that's what we can see. All right, thank you. Fanny Oreng from Santander is asking a question. Good morning, Miguel. Thank you very much for presentation the results. You bought two plots of land in Porto Alegre. I'd like to see how you, you see the region. We know that you have much less presence there than you do in São Paulo. What are your expectations? Is it better than you expected for the region? What is the expectation on return rates? My second question has to do with São Paulo.
We see a number of companies that are normally mid-end to high-end, they're migrating to do Minha Casa, Minha Vida, and they're talking about accelerating that as a whole, which could potentially lead to an impact when you think about workforce and labor. How is it that you see this potential risk in the market in São Paulo? Does that make sense? Porto Alegre is not an easy city. We bought two plots of land, and if we did that, it's because we thought those two were good. On a macro level, it doesn't mean we're going to be growing a lot in Porto Alegre. Again, everything here is bottom-up. I mean, I don't mean to be repetitive. We bought two plots of land because we like those two plots of land.
No one woke up in the morning saying, "Hey, we want to grow in Porto Alegre." Brazil is not for amateurs, and nor is Porto Alegre. We need to be careful with what we do in Porto Alegre. We're very attentive, but we like them both. I don't know which one we included in the balance this, on this quarter, but we like them both. Thank you for your question, Fanny. It's very difficult to predict what the increase in, in milling is going to, to be, and how fast it's going to, to be. If you have an increase in, in milling that is sudden, then there's a lack of labor or workforce, right? We see a decrease in the number of units launched in the cities in compared to 2021, possibly compared to 2022, too.
This is not the worst moment. We have grown a lot in, in, in milling, and there was a moment that was difficult to, to go through. We struggled a bit with labor. The increase in the number of Minha Casa, Minha Vida could have an impact, and our engineering team is concerned about that, I mean, or is attentive to that. We see the situation is better than it was one and a half years ago. All right. Thank you, Rafael and Miguel. Next question from Daniel Gaspareti from Itaú. Thank you for taking my question. I've got two questions. The first has to do with the follow-up of sales in the second half.
We know the macroeconomic scenario fluctuates a lot, but would it be intuitive to think that with the decrease in interest rates, we could see an improvement in the sales more than you had in the first half of the year? How do you see pricing dynamics? You think pricing could start to go up again? There was a question around the master plan in Rio de Janeiro, but what about the master plan in São Paulo? What is your perception as to that? Will that have a positive or a negative impact for the company? I know that Rafael said it's something that you look at land plot by land plot, but I guess we're ready. Again, we have to be realistic. As I said to Bruno, we don't expect any improvement. If it doesn't get worse, that's good enough.
If the macroeconomic scenario doesn't get worse, that's good enough. Of course, if the banks reduce their interest rates for clients, that's going to be better. We expect the banks will keep their interest rates at the same level for clients, even if the interest rates of the country goes down. For prices to start to go up, I think it will take a while. It need some good years or some years of good macroeconomic context for prices to start to go up. Again, we expect the scenario to be the same as it is. Nothing is easy, right? In Brazil, as we say, if it's very bad, then it's bad, but if it's just sort of bad, then it's not too bad. Brazil is never too good or too bad. We just navigate the waters. We surf the seas.
When people get too excited, it's not good because then there's a price war. We're expecting it to be the same as they are. It's a difficult scenario, but if you're cautious, you can weather it. Now, the master plan in São Paulo, it should be positive for the margin. That change doesn't change things much. I mean, not the master plan, doesn't change things much. What really changes things, the macroeconomic situation in Brazil, it's not the master plan of São Paulo that is going to unleash a massive change in the market. It's going to be positive, but marginally so. We won't start buying land bank, left, right, and center because of that. Thank you, Miguel. Thank you, Rafael. Have a good weekend. Next question from Hugo Grassi from Citi. Hello, everyone.
Congratulations on your results. Thank you for taking my question. I'd like to insist on the master plan point. We're a bit more excited. It, it could be a change in the parameters. I would like to understand, first of all, how much advantage can you take of this opportunity, considering the, the volumes you can do? You've been buying land bank to replace what you have. I mean, you've been launching faster than you've been buying, right? Thinking about the... Do you see that at all? The rules become a bit more favorable. Could you quantify in any way what would the impact be or positively in your, in your PSV? Miguel said that the pipeline for 2023 won't allow for more projects.
How do you see the possibility of launching projects a bit faster to resubmit it for approval so they could. Your opinions. Hugo, thank you for your question. Quantifying impacts. Again, that is land plot by land plot. It depends on the land bank available, how much you can verticalize it. In some cases, verticalizing it can yield a lot of benefit, in some cases, it can't. Qualitatively speaking, you can present a project, but more better defined. It is a benefit, but we can't quantify it. We're not going to resubmit for approval for any projects in 2023. The projects that we're working with are gonna be launched. In 2024, that will depends on the on our calendar and our, our timeline, but we could see some benefits if you're submitting for approval for a new project in, in this situation.
I don't think we're in a difficult position for 2024. We're not concerned about 2024. Again, we're not a company that worries so much about volumes. We are relatively comfortable with what we already have for 2024, and now we're gonna be looking at the situation, land plot per land plot. Miguel didn't say we're in a, on a tight spot. He said, we're comfortable, we're okay. If the projects improve, then, I mean, no problem, we can, we can push it from 2024 to 2024, and if the volume is smaller, it's okay. If we can make more money in 2025 than in 2024, that's great. We're gonna do it, the volume is fine. All right, thank you. Next question from Rafael Rehder from Safra. Good morning, everyone. I only have one question.
The savings account funding for individuals, not for corporate clients, you don't see the rates going down in the short term, but do you see any risk if we continue at this level of sales, where the situation might become a bit more difficult, the cash inflow could be lower? Would you have an expectation of increasing your direct clients or fiduciary portfolio? Thank you for your question, Rafael. Looking at the balance sheet of the main banks, the credit for individuals has gone down. I think the biggest movement has already happened, and that hasn't had an impact for us. We have the benefit of having the real estate credit with the banks, and there's a good volume every year, so we haven't had any impacts when you think about LTV or anything of the sort.
We continue to have the credit availability for our clients. Looking forward, I mean, it's difficult to know it, I think the main reduction coming from the banks has already taken place. The real estate portfolio is still growing. This will depend on the dynamics for the banks, right? The bank will always try and have the volume that is coming compensated, right, offset. I don't see any lack of funding in the future. I think it's gonna be very different to 2016 or 15. Rafael already said that, we find it difficult for things to go down much, but the reduction in the Selic interest rate could have a positive impact.
You could have net deposits, and that would help the banks have a bit more appetite and, and increase their rates for, for origination, for, for sourcing. All right, that's clear. Thank you. Next question comes from Marcelo Motta from JP Morgan. When you think about the, the client, from 1 point, and you have the, the broker, the agent still having the financing costs at 10 or 11, right? With the Selic rate changing, we could have a change there. Do you think there could be better rates for, for the future? Capital allocation. You have shares from Cury Milano. What do you expect from that front? Do you think you could get to the highest price, or you, you can think that the balance sheet is solid? I'd like to hear about your investment front as well.
Hi, Motta, this is Miguel. As a mortgage, our sales force doesn't do this type of pitch with the clients, credit analysis will continue to think that the funding rate or the loan rates are going to still be the same. We're very conservative there because of the volatility that we know there is in Brazil. The interest rates curve, loan rates, that's a high level of sophistication, right? It's difficult to have this conversation with a client when you're selling a unit, right? That does not happen in Cyrela. As for capital allocation, we can't talk much about our plans, obviously, any divestments, what we can say is that we have a long-term agreement with our three JVs that are listed.
We have shareholders' agreement, they guarantee we continue to have a substantial share of them up to 2027, and as Rafael already said, and I have to stress, we're very happy to have them as our partners, and the three of them have published, or released, rather, their results this week, and their results were very good. We're very happy to see that these companies that joined the market 3 years ago, are able to deliver on their promises and have good performance. As Rafael said, we feel very lucky to have these partners. That's very clear. Thank you. Next question from Jorel Guilloty from Goldman Sachs. "I've got 2 questions. Good morning.
Well, considering the macroeconomic situation, and I'd like to hear from you if you see a possibility of special dividends, what your framework is going to be, and how that could be in the context that we currently have. You talked about loan rates and what your expectations are for 2023, 2024, but I'd like to hear more about the breakdown when it comes to the product type. Do you see it could be like 50% high and 30% mid-end, and 20% for the rest, or could we have more in the mid-end? Thank you." Thank you, Jorel, for your question. I thought this question about the dividends was going to come earlier on the call. Well, as you know, we always pay a lot of attention to our capital structure.
We don't-- we don't like to work with heavy e-equity level. We have to have a number of launches that is higher than our e-equity so that we can have an ROE that is relevant for our shareholders. Last year, at the end of the year, we saw a substantial cash burn for this year, thinking about the macro and the micro scenarios that were very challenging. Things are going on well. Things are going well. Cash generation is a bit better than expected. We have burned less cash than expected, the micro and macro scenario are also going better than expected. Let's see how the next months fare, how they perform. When we have extraordinary dividend payouts, it's generally close to the end of the year, so it's possible that we will resume these discussions, but let's see how performance plays out.
As for the breakdown of launches for next year, generally, it's the same. We could have an increase in the economic front. We had sort of slowed down on that front because of inflation, and now with a better scenario, we're more excited, so we may have some growth there. The breakdown, when we look at regions and segments, should be similar to what we already is. "All right. That's clear. Thank you." All right. This is the end of our Q&A session. I now turn the floor over to Raphael Horn for his final remarks. Thank you very much, everyone, for joining the call. This is Miguel speaking. Let's continue to do our best to deliver good results, hoping that the micro and macroeconomic scenario will play along. Have a great weekend. Thank you.
This is the end of our conference call. If you have any questions, please send them to our, our ri@cyrela, pardon me, our ri@cyrela.com.br, so that you can speak to our IR analysis. Have a good day. Thank you.