Good afternoon, and welcome to Gafisa's Earnings Call to discuss the Fourth Quarter and Fiscal Year of 2022. With us today, we have Sheyla Resende, CEO. Luis Fernando Ortiz, Business VP. Edmar Prado Lopes, CFO and IRO. Renata Yamada, Chief Legal Officer and Management Officer will also join us for the Q&A session. This conference is being recorded and all participants will be in a listen-only mode during the presentation. We will then start the Q&A session. Before we begin, we would like to inform you that the statements made by the management involve risks, uncertainties, and may refer to future events. Changes in macroeconomic policies or legislation, as well as other operating results, may impact the performance of the company. Ms. Sheyla Resende, you may begin, ma'am.
Good afternoon, everyone, and thank you for joining us on our earnings video conference. The year 2022 consolidated Gafisa's strategy to position the company in the high-end segment, underlined by a robust operational performance evidenced by the best sales figures in the past five years. Our gross sales were 50% higher than in 2021, surpassing BRL 1.1 billion. Cancellations went down, resulting in 67% net sales growth, totaling BRL 971 million. Our SoS reached 27.4% in 2022, 5% higher than the 22.4% that we had in 2021. Our launches volume also surpassed BRL 1 billion. We concluded the construction of eight projects in 2022, seven of which are in São Paulo and one in Rio de Janeiro, delivering 1,070 units and BRL 765 million in PSV.
This year's highlights included the launch of the project Cidade Jockey, with a PSV of BRL 240 million, Gafisa's biggest launch with regard to PSV in the past 10 years. We also delivered Atlantico at Copacabana Beach, a high-end project 100% sold out with a PSV of BRL 126 million. Atlantico is amongst Gafisa's four projects overlooking the sea in the city of Rio de Janeiro. Our focus on high-end, high value-added products in premium areas of the cities of São Paulo and Rio de Janeiro. This strategy has proven to be appropriate, especially because of luxury products, which are more resilient to the market fluctuations.
We ended 2022 with a land bank of BRL 12 billion in PSV. We acquired lots of land in premium areas of São Paulo, such as Itaim Bibi and Jardins, as well as Vieira Souto in the district of Ipanema in Rio de Janeiro. We have the land bank required to sustain our position in the high-end segment. For 2023, we already have a pipeline of new businesses which will allow for our strategy to continue and be followed in the medium and long term.
Gafisa is focused on providing the best customer experience, and we set up an exclusive department to execute our plan. We hired a consulting firm that specializes in luxury products to work with our internal culture, and that will help improve our service in every point of contact with our customers. Our mission is to meet with excellence our clients' and customers' demands.
We ended the year 2022 with an inventory of BRL 2.5 billion. Out of this total, mid, high, and high-end projects account for 85%, 98% of them are in the city of Rio de Janeiro and São Paulo, in line with our strategic positioning. Besides our robust sales performance in 2022, we took a number of measures aiming at cutting costs, such as using space as efficiently as possible, changes in processes and systems, and that already shows annual gains of nearly BRL 10 million.
Another highlight is that we have started to be recognized and enter market indices, which is evidence that we are reaping the benefits of our efforts. In 2022, we entered the 18th portfolio of B3's Corporate Sustainability Index, the ISE, which is a result of our work to incorporate environmental, social, and governance criteria into our business model. We are also now part of the B3 GPTW Index, which looks at businesses recognized as the best companies to work for, but a great place to work. To have our brand feature amongst these select companies bears witness to how much we care for our staff and for a professional and collaborative work environment that allows for people to thrive.
These two achievements reflect Gafisa's commitment to the ESG practices and positively impact our business, allowing our brand to stand out to all stakeholders. In 2023, we set up the Multidisciplinary Management Committee, aiming to improve our operating performance with luxury-related initiatives and bolstering financial KPIs. This committee is composed of Luis Fernando Ortiz, Business VP, Renata Yamada, Chief Legal and Management Officer, and Edmar Prado Lopes Neto, Chief Financial and Investor Relations Officer.
The idea is to combine all members' competencies and experiences with a diversified perspective, generating gains and efficiency in decision-making, and leading Gafisa to the level we defined in our strategic plan. All these initiatives are already yielding results in the company's sales performance. Sales are higher in the first two months in 2023 in a yearly comparison. Gafisa remains committed to growth, sustainably fostering innovation, improving its processes to continue to offer quality products and a special experience to our customers. We thank our shareholders, investors, and staff for their trust, and we'll continue to work hard for our joint success.
I'll now turn the call over to our Business VP, Luis Fernando Ortiz, who will present our financial performance.
Thank you, Sheyla, and good afternoon, everyone. We'll start off on slide five. At the end of 2022, we see the best sales results of Gafisa in the past five years, as you can see on the chart. We had a 50% climb year- on- year, and we reached BRL 1.1 billion. We reduced cancellations at 8%, and therefore, net sales grew even more, 67% in the year, totaling BRL 971 million. Our SoS also is worth mentioning. It was 27.4% in 2022, 5 percentage points higher than the 22.4% we had the previous year. We're very proud to present these results to you here today.
On this slide, you can see how the sales mix was well-balanced in the year, with 52% of sales concentrating in real estate under construction and 27% in the sales of launches. 21% remaining is of finished units. 18% are mid and real estate. The sales of the older projects units had an an impact on our margin, especially in the fourth quarter of 2022, and generated gains in the short term. This profile was only 13% of our inventory at the end of the year.
On slide seven, we can see the six projects that we launched this year, four in the city of São Paulo and two in Rio de Janeiro, one in the capital of Rio and one in Niterói. Launches totaled BRL 1.1 billion, BRL 811 million in the city of São Paulo, and BRL 259 million in Rio de Janeiro.
Slide eight. We can see our major highlight in the project Cidade Jockey in São Paulo, BRL 240 million in PSV, and that accounts for 32% of our total PSV in the year. Cidade Jockey was the biggest launch Gafisa had in terms of PSV in the past 10 years. This is in the Butantã neighborhood, and the architecture was signed by Gensler, which is a very well-known architecture brand in the world. This project is already contributing to our sales volumes in Gafisa.
Let's now talk about our inventory. Slide nine. We have BRL 2.5 billion, including the units from Cidade Matarazzo. 86% of our inventory is either being launched or under construction, and 66% come from projects that were launched up to two years ago. The mid-high and high-end projects now account for 83% of our inventory, and 98% of that is in Rio de Janeiro or São Paulo, which underscores our portfolio strategy.
With deliveries and transfers, we concluded eight projects in the year, seven in São Paulo and one in Rio de Janeiro, totaling 1,070 units and BRL 765 million in PSV. In the quarter, we had a bit with Update Vila Madalena in São Paulo and Atlantico in Rio de Janeiro with 106 units and PSV of over BRL 155 million. PSV transfer for the year also totaled BRL 191.5 million, 14% lower year-on-year. That has to do with the concentration of the literary license to occupy reduction in the second half of 2022.
On slide 11, we can see our highlight in Rio de Janeiro project Atlantico with BRL 126 million PSV. Atlantico is in Copacabana, at the Copacabana Beach, and it's water looking, one of the four projects that we have in Rio de Janeiro. As Sheyla mentioned at the start, we're perfectly ready to grow with a focus on high end. We have the land bank necessary. We have BRL 12 billion in PSV in our land bank, including land lots in neighborhoods such as Itaim Bibi and Jardins in São Paulo and also in Vieira Souto in Rio de Janeiro. We have also sought a consultancy firm to support us in the luxury related projects to perfect our service and every point of contact with clients. In 2023, we have a very robust pipeline that will sustain our strategy in the mid to long term.
Now I'll turn the floor over to Edmar, who will talk about our financial highlights.
Hello, Ortiz. Hello, everyone. This is my first conference call after I took over as Chief Financial Officer. It is a pleasure to be here today. Let's talk about the financial highlights, shall we?
On slide 14, we have a snapshot of our financial performance. Our solid operating performance, as Sheyla and Ortiz already mentioned, led to a 39% increase in net revenue, totaling BRL 1.1 billion. Out of these figures, 86% will come from real estate launched in the past five years, and 14% from real estate units launched in 2017 or in years prior to that. The fourth quarter also saw an increase, 47% in revenue, totaling BRL 326 million. As for expenses, we have good news there. SG&A dropped by 4.7%, especially due to the cost-cutting initiatives we took over the year 2022. In the quarterly comparison, the SG&A expenses dropped 16%, even more.
Many of these initiatives focusing on cost reduction, such as making best use of spaces, changes in persons and systems, will also have an impact in 2023, leading to yearly gains that amount to BRL 10 million. The last highlight has to do with the revenue receivable, which increased 94% in the year. I am going to detail that out in the next slide.
Gafisa currently has, or rather on the 31st of December, Gafisa had BRL 1.4 billion in receivables. The success of our new launches can be measured by the receivables. Receivables amounted to BRL 675 million last year. That shows an increase of 94% year-on-year and a gross margin of 36.1%. We are talking about the future here. This result shows a positive perspective, both for revenue as well as for margin in the coming quarters, especially considering the size of the projects that we have bought more recently. The charts to the right shows how the BRL 675 million in receivables break down in the coming five years. 62%, or BRL 423 million, will be received in the next two years.
Slide 16 is our last slide, and it shows a little bit of our cash and our debt. We ended the year with BRL 160 million in cash, and the net debt is BRL 1.2 billion. In 2022, we raised about BRL 600 million to apply mostly in the projects that are already ongoing, including for land bank. Ortiz already mentioned that point when he talked about land bank. At the end of the year, Gafisa was compliant with every item regarding financial aspects and debts.
That is the end of my presentation, and now we are going to start the Q&A session.
Thank you. We will now begin the Q&A session. The first question comes from Jose Alberto Nascimento. How does Gafisa classify this result for 2022? Did it meet the company's expectations?
Hello, everyone. This is Edmar. Thank you, Jose, for your question. Our operating result is very positive. Yes, it met our expectations. The launches took place as we had planned them to. Companies in general in Brazil have been having lower results than in previous years, especially due to the economic situation the country finds itself in, with low growth and high interest rates. In Gafisa's case, the 22 results were impacted mainly by the reduction in gross margin in the sales of older finished units, and that is in line with the company's strategy, and also with the increase in cost with what is related to the projects. The CDI rate was almost fivefold higher than what we had in 2021. But again, the operating performance is positive, and I would like to ask Ortiz to talk a little bit more about our operations.
Thank you, Jose. Thank you, Edmar. Our performance in sales is really a big highlight. We broke a record for the past five years, and last year was a very challenging year. We had a 50% increase year-on-year, and the last quarter was a main highlight. Cidade Jockey was a very successful launch. Other strategies were very efficient. We were decentralized in our approach, and that yielded results in our portfolio.
Another highlight is that we had important acquisitions in land bank, and that has to do with our focus on high-end projects. These market fluctuations, high-end projects tend to sustain better, and we want to improve our gross margin for our business.
Fred Bittencourt has a question. What happens now with Gafisa Propriedades?
In Gafisa Propriedades, we integrated that with Gafisa S.A. We wanted to gain synergy in processes and in operation. As you can see in the income statements of last year, we do not show Gafisa Propriedades as a business unit. It is now part of Gafisa S.A., as we mentioned. There is a full integration with the efficiency that we now have with this new model.
Claudia Vazquez has a question. Do you have new ESG targets and goals for 2023? How does Gafisa see these actions impacting the company in the future?
Hello, Claudia. Hello, everyone. Thank you for joining. Thank you for your question. ESG practices have been made in a very strategic way. We had a number of initiatives in 2022. We joined the ISE Sustainability Index. It is a B3, very important index when it comes to sustainability and responsible investment that really validates our practices. For the second year consecutively, we had GPTW, Great Place to Work awarding, a label to Gafisa as well. That shows that we are on the right path with our practices.
In 2023, we will continue with this practice. We have other initiatives that are already ongoing. One of them is the reduction in carbon. It is a product to reduce carbon. I believe that is going to be very favorable and it is going to add a lot of value to the company. We continue to believe that these initiatives will lead to very important impacts, increase the value perception of our company and of our investments, and also that all allows the company to have a healthier development. It attests to our social responsibility and the value we want to generate with our projects.
Should you have any questions, please type it in the Q&A icon at the left of the screen. Please write your name and the name of your company so that we can identify you. Thank you. Eduardo Albuquerque has a question. What can the segment expect from Gafisa in the coming years?
Hello Eduardo, thank you for your question. Hello, everyone. What can be expected of Gafisa is that the brand will be consolidated in the high-end market, developing special projects for our land bank that are already land bank lots that are certified because of their exclusive and unique location. We want to continue to improve our operating performance and as a consequence, our financial KPIs. The company's mission is to be strengthened in the high-end segment, and we seek to become a reference company because of our products and because of our customer experience.
This is the end of our Q&A session. I would like to turn the call over to Sheyla Resende for her final remarks.
Thank you, everyone. Thank you for joining. Should you have any questions, do not hesitate to contact us using our IR channels. Thank you very much and have a good afternoon.
This is the end of the video conference of Gafisa. Thank you very much. Have a good afternoon.