Good afternoon, and thank you for holding. Welcome to Even's earnings call concerning the results of the fourth quarter of 2024. I would like to point out that for those who need simultaneous translation, the tool is available on the platform. To use it, you have to click on the button Interpretation, the globe icon at the bottom of the screen, and choose your preferred language, Portuguese or English. For those who will listen to this teleconference in English, there is an option available to mute the original audio in Portuguese by clicking on the Mute Original Audio button. We would like to inform you that this event is being recorded and will be made available on the company's investor relations website, where the complete material concerning this earnings call will be available.
It is also possible to download this presentation by way of the chat icon in both Portuguese and English. During the company's presentation, all participants will have their microphones on mute. Following that, we will begin the questions and answer session. To ask the questions, click on the Raise Hand or Q&A icons at the bottom of your screen and type in your question to join the queue. When you are called, a request to activate your microphone will show on the screen, and then you must accept it to ask your question. We would like to advise you to ask all your questions at once.
We would like to clarify that any statement that might be made during this teleconference regarding Even's business prospects as well as its operating and financial projections and goals, are based on the beliefs and assumptions held by the company's management and on information currently available. Forward-looking considerations are not a guarantee of performance and evolve risk, uncertainties, and assumptions since they refer to future events and therefore depend on circumstances that may or may not happen. Investors should understand that general economic conditions, industry conditions, and other operating factors may affect Even's future outcomes and may lead to results that materially differ from those expressed in these future considerations. Here with us today are the chief executives of the company, Mr. Marcio Moraes, CEO, Mr. Marcelo Zick, CFO, Mr. Thiago Kroh, Strategic Planning and Investor Relations Director. I will now give the floor to Mr. Marcelo Zick, Even's CFO.
Good afternoon, everyone. It is with great pleasure that we present Even's earnings for the fourth quarter and for the consolidated figures for the year of 2024. I would like to begin with the operating highlights of 2024. We launched in a year BRL 3.6 billion, of which Even's share is BRL 1.9 billion. This is on the same level as last year. Net sales amounted to BRL 1.4 billion, and another highlight was inventory sales of BRL 1.1 billion, which represents an increase of 51% when compared with the previous year. In 2024, we delivered nine projects with a total PSV of BRL 1.6 billion considering Even's share. We generated in the year BRL 355 million of operating cash and paid out BRL 230 million in dividends in that period. Concerning the financial highlights, net revenue amounted to BRL 2.2 billion for an increase of 21%.
We reported a gross profit of BRL 578 million, which is 43% higher than last year's. Our adjusted gross margin was 30.9%, accounting for an increase of 6% in the year, especially due to the higher margins in sales and the positive contribution of the last two years' launches. Quarter-over-quarter, we have been reinforcing the strength of recomposing our margins, which can be seen in our margins of inventory and next launches. We delivered BRL 194 million in net income for São Paulo's operation, representing a 12% increase when compared with 2023 and an 11.8% ROI. In the quarter, Even's comprehensive net income was BRL 30 million.
This figure takes into consideration the positive result of BRL 44 million arising from the sale of equities in SPEs, which directly impacts shareholders' equity without affecting the statement of income due to the company remaining the controlling interest of these projects even after selling part of its equity in them. Since it concerns the results to shareholders with a cash effect, we deem it more appropriate to demonstrate this as comprehensive net income. The graph shows the reconcilement of these figures in the quarter and in the year. Disregarding the effects of the sale of equities and considering the result of the sale of Melnick's stock, the consolidated net income in 2024 was BRL 43 million. In line with our strategy of focusing in São Paulo, we concluded the divestment from Melnick in 2024, which we consider a successful partnership that began in 2008.
In spite of the accounting loss, the operation generated BRL 306 million in cash for Even. The next slide shows a track record of net income for São Paulo's operation in the last eight quarters. We can see the consistency in generating profit quarter-over-quarter and an increase in the profitability, driven mainly by the gradual recovery of margins and gains of efficiency. We launched three projects in the fourth quarter of 2024 with BRL 2.4 billion of PSV, of which Even's share is BRL 1.3 billion. They are Franca 1055, our second project in partnership with RFM in Jardins neighborhood, moving up the date of the launch of the second tower of Faena São Paulo, and the launch of Arizona 1002 in Brooklin neighborhood. We ended 2024 with BRL 3.6 billion worth of launches, with Even's share being BRL 1.9 billion.
In the following slides, we can see some of the pictures of these projects. Next, we discuss our sales performance. The volume of net sales in the quarter was BRL 369 million, with a consolidated SoS of 12%. The sales of inventory remained consistent, amounting to BRL 1.1 billion in the year, a 51% rise when compared with the previous year. Concerning cancellations, the year ended at BRL 53 million, which is a stable level when compared with the average of previous quarters. It is worth noting that we still have one of the lowest historic levels of default in our client portfolio. Moving on to the next slide. We delivered three projects in the quarter with a PSV of BRL 899 million and 757 units. We are currently at a significant cycle of deliveries, estimated to amount to BRL 1.6 billion in the next 12 months.
Here are some photos to attest to the company's high quality of execution. We ended the year with an inventory worth BRL 2.8 billion, predominantly in the upper-income and luxury segments, with projects that are well located and highly liquid. It is a pretty young inventory, and the finished inventory corresponds to only 8% of the total. Additionally, around 70% of the inventory under construction will be delivered in 2027 and later. in the quarter, we sold BRL 97 million in finished inventory, with a special mention of the totality of Ibiza Prainha Hotel having been sold. The deliveries in this year were 73% sold as of December 31st, as we can see in the graph on the bottom right-hand corner of this slide.
Our land bank comprises 20 lots or phases for a total PSV of BRL 3.8 billion, mainly located in prime neighborhoods in the south and west sides of São Paulo and concentrated in middle income to luxury segments. In the next slide, as an integral part of our strategy, we demonstrate our solid capital structure. We ended the quarter with a gross debt of BRL 1.2 billion, mostly designated for financing production. At the end of the quarter, we had a significant cash position of BRL 765 million, which translates into a net debt-to-equity ratio of 20%. As a highlight, we mention the amortization schedule of our corporate debt, which has considerably extended maturities and is consistent with the business cycle. In this quarter, we generated BRL 143 million in operating cash and totaled BRL 325 million in 2024.
Along the year, we paid out BRL 230 million in dividends to shareholders, ratifying our strategy of focusing on profitability and value generation. I would like now to give the floor to Marcio Moraes, Even's CEO.
Good morning, everyone. I would like to begin by thanking you all, investors, analysts, and everyone else for attending Even's earnings call concerning the fourth quarter of 2024. We ended 2024 with satisfactory results that include launching a significant amount of PSV from emblematic projects such as Faena São Paulo. Besides the sale of inventory that surpassed our planning, we kicked off our partnership with RFM by launching two projects in Jardins neighborhood with a total PSV of BRL 950 million, of which BRL 500 million is Even's share. We also prepared new special launches for 2025 that will yield ever-increasing results in the company's balance sheet.
Our inventory is at a very healthy level, concentrated in the middle income, upper income, and luxury segments. Only 8% of it corresponds to very unfinished units. We have observed an increase in gross margins, important cash generation, mainly set aside for payout of dividends. We sold our equity at Melnick so we can focus on our operation in São Paulo, especially in the upper-income and luxury segments from both inventory and future launches. As for our net income, we had some negative non-recurring accounting effects, mainly due to selling Melnick's stock, which made it somewhat difficult for the market to analyze these results. We began 2025 with a company that's adjusted to its strategic positioning, focusing on higher-end projects, which have yielded results consistent with our strategy. Margins remain consolidated at high levels, enabling growth and cash generation for coming years.
According to our strategy, we have achieved the profitability growth and have paid out substantial dividends. These results are supported by increasing margins, a solid capital structure, efficient cash allocation, and the maintenance of an optimized operating structure. We pay close attention to the market and to economic cycles, and we will continue identifying real estate investment opportunities, focusing on São Paulo, and we are confident in the continuous growth of our future results. Thank you all again for being here. We may proceed to the Q&A.
We will now begin our Q&A session. Remember that to ask questions, you must click on the Q&A icon at the bottom of your screen and type in your question to join the queue. When you are called, a request to activate your microphone will show on the screen, and then you must accept it to ask your question. We would like to advise you to ask all your questions at once. Let us now proceed to our first question from Matheus Belloni from Santander. Matheus, we will give you the command to activate your microphone. You may now proceed.
Hello. Good afternoon. Thank you for taking my question. We have two questions here. The first is to understand a little bit more the impact observed in the quarter related to the Pedro de Alvaro SPE and the provisions for some contingencies you had to make. What were these two impacts, and if there will be any future impacts. If you could talk about it. The second question, if you can give us an update on how the sales of Faena are getting along.
Hello, Matheus. Good afternoon. Thank you for the question. Zick here. First, talking about the impact we had and beginning by the end, the non-recurring impacts, we had some specific questions that were settled in the fourth quarter. Fazenda SPE, it was a closure. We had some divergence regarding calculations and how some of the shareholders, their percentage concluded. The closing of this store impacted our fourth quarter to the amount of BRL 28 million. The other impacts were from stocks in the process of selling some land that are outside of our radar, as we say, in terms of strategic position. We had two lots in Rio de Janeiro. One of it is undergoing a process of selling, and it generated a slightly higher impact. The other one is a settlement on a judicial case, a legal case, that were settled to BRL 40 million. This was a lot.
These two items added together add up to BRL 70 million, specific to old issues, but they are now concluded and settled. None of this will remain for future quarters. Now, changing topics, the second question, talking about Faena. We had at the end of the year and the beginning of the year that was very busy. Our marketing actions have been having a great response. We had some sales in this beginning of the year. Even with the market being very seasonal at this very high end, the project is more than 35% sold altogether. We moved up the date of launch of the second tower. Originally, we would open it in the end of the year. Keeping in mind, we have a very extended deadline for construction of four years. But we had a specific demand for some units that we do not have in tower one.
We do have a few duplex units that have been sold, a penthouse, so we thought it was better to move up the opening of the second tower to capture these sales that were important to us. The project is selling very well, above our expectations, at a good pricing level. We have a very good prospect for this project. When the construction is more advanced, it will gain traction. We are very happy with this partial result. Our construction work will begin now in April, so we are moving on to a new phase in this project.
It was very clear. Thank you for your answer.
Our next question is from Elvis Credendio from BTG. Elvis, you may proceed now.
Good afternoon. Two questions here. I would like to go back to this Rio de Janeiro operation that you have these write-offs. As far as we can understand, this was a discontinued project, but I would like to understand what actually we can expect after this quarter. If it was only these two items that Zick commented, or if you expect some other impact in the future that has already been discontinued.
The second one, regarding cash flow, I would like to understand volume of deliveries that was very strong in the fourth quarter. We had the selling of equity in SPEs. I would like to understand what to expect from some deleveraging in the first quarter, and what is the level of leverage you are facing now in this macroeconomic situation that is more turbulent, if we can increase the payoff ratio.
Hello, Elvis. Thank you for your question. Zick here. Talking about Rio de Janeiro, yes, we have a discontinued operation there, and our cycles are very long. Although this operation has been discontinued for a long time, these two operations that we mentioned, besides these two operations, we have very little, and this is the result of an operation in the past that was more significant. Our expectation is that after these effects, Rio de Janeiro, any adjustment will be very small and very little, not relevant to our operation. Our idea is to sell this land, and they are already announced and for a very good price in the market, we are going to work to sell this as quickly as possible.
We do not expect any relevant impact from Rio de Janeiro. Now, changing topics, talking about leverage. We have been generating a lot of cash. We generate cash in 2024. We have some very important prospects of deliveries in 2025. Besides, the selling of some equity also generated a lot of cash.
Talking about leverage and cash generation, we are going to understand this a little better along the year, what our opportunities will be to allocate this resource, what kind of opportunities will come along, and also increase our volume of launch. Our macro strategy is the same. The idea is to keep the company light and pay out a lot of dividends. We are thinking about around 50%. This can change more or less, depending on the opportunities we have along the year. Our leverage will probably not have great variations. It is close to the 20%. It can go up a little, go down a little, but it will stay around this line.
Thank you. Our next question is from Ruan Argenton from XP. You may proceed.
Good afternoon. Thank you for taking my questions. Two topics I would like to discuss. A little bit of follow-up of the previous question. In this scenario of transferring that we have these deliveries, I would like you to break it down a little bit more what your expectations in terms of negotiations of these transfers. If in this quarter, the volume of deliveries is high, but if you are thinking in terms of transferring these deliveries.
The other question is in the issue of selling the SPEs. I would like to understand if there is room for you to do more of these sales of SPEs. I would like to know if this is more concerning the land you bought in cash, or if you are thinking about doing this selling of SPEs to share risk. Any expectations you might have, I think it would be interesting to share.
Hello, Ruan. It's Zick here. Thank you for your question. Talking about transfers, of course, the credit environment is becoming more and more difficult. We have seen a deterioration in past years. These processes have become more difficult, and this has not happened at a very high level, but it has degree. It's a higher degree, but this has been happening, and we have already taken this into account. The constructions that we need. The flow of these transfers concerning these clients has been happening at a normal level. We talk a lot about this. We are very positioned in the high end, and we can have some effect of this in the high end, but practically speaking, this is a client that doesn't depend so much. Actually, we say that there is some arbitrage for these levels in which they can use their resources.
We did not have any relevant impact in terms of transfer our portfolio. The LTV for our company is at more than 50% with pre-keys. It's going to change a little bit depending on the project, but our portfolio as of now is very healthy. Banks are more restrictive. They are reducing the LTVs a little, but things have been happening at a kind of a normal flow. Talking about the strategy of partnerships, we like to point out our intention of launching around BRL 2 billion per year. If the market improves a little more, if the market is more difficult, a little less. But the idea is not to grow too much because we know these fluctuations, these oscillations in the market. Even has a capacity to generate business that's very good. We have been able to have good projects to attract good partners.
In this process of selling some SPEs, we have decreased our risk. We have been able to generate some cash, increase revenue. This is a strategy that we like, and the level at which we're going to do it depends on some other factors. But we are finalizing some processes, and coming quarters, we're going to mention them. But the idea is to reduce risk and take advantage of our capacity of generating business.
Just to complement, Marcio here. This partnership strategy in the past, we used to enter through swappers and we left some cash, but now we are buying the land upfront, committing these lands, and then waiting a little bit for these partners to enter the project. We started the projects, and then a little bit ahead, some of the partners entered this project. It is a strategy that began in 2023, has been yielding good results, and our idea is to maintain this profile.
Thank you. Our next question from Herman Lee from Bradesco BBI. You may now proceed.
Good afternoon, Marcio and Zick. Thank you for this opportunity. One question on my side. How have you been feeling this environment of competition? If you have seen some important movement in the competition and considering the company's strategy of buying land using cash, how the negotiations are going?
Hello, Herman. Good afternoon, Marcio here. In these last few periods, the competition for land has been decreased because of the high interest rate and the difficulty of financing that some companies, especially small and medium-sized companies, have been facing. We have a lot of projects under study for buying land, but we have not felt the reflection of this increase in interest rate.
What we see is that the price of land has stabilized the supply. The owners of good land want to sell it so they can invest in the capital markets. So we have had more leeway to analyze these projects and this land.
I would like to remind you that to ask questions, you must click on the raise hand icon at the bottom of your screen. The Q&A session is now closed. We would like now to give the floor back to the company for their final remarks.
I would like to thank you all for attending this call. We will see you soon at the earnings call for the first quarter. Thank you.
Even's earnings call concerning the results of the fourth quarter of 2024 is now concluded. The investor relations department is at your disposal to answer any further questions you may have. Thank you all to the attendees, and we wish you a nice day.