Good morning, ladies and gentlemen. Welcome to Helbor's First Quarter 2025 Earnings Conference Call. This video conference is being recorded, and the replay can be accessed on the company's website, ri.helbor.com.br. The presentation is also available for download. Participants will only watch and listen to the company's presentation, after which we will open for the Q&A session when further instructions will be provided. Before proceeding, I would like to reinforce that forward-looking statements are based on the beliefs and assumptions of Helbor's management and current information available to the company. These statements may involve risks and uncertainties related to future events, and therefore depend on circumstances that may occur or not.
Investors, analysts, and journalists should take into account that events related to the macroeconomic environment may cause results that differ materially from those expressed in the respective forward-looking statement. With us, we have Mr. Henry Borenstein, CEO, Leonardo Piloto, CFO, and Marcelo Bonanata, Commercial Director. Mr. Henry will begin the presentation. Please, you may proceed.
Good morning. It is a pleasure to begin our results call at Helbor. We have Leonardo Piloto and Marcelo Bonanata to present the results of the first quarter of 2025. The beginning of this year was marked with special events of the company, showing the solidity of our strategy, assertiveness of commercial initiatives, and efficiency in our projects. Main highlights, total gross sales BRL 619 million in the first quarter, with an increase of 40% when we compare to the first quarter of 2024, and 44% belongs to Helbor's share. The SoS was 25.5%, and PSV of Helbor's share was 17.6%. We launched three developments in the first quarter with a total PSV of BRL 491 million, 30% Helbor's share, and the total SoS of 48%. We delivered two developments with a net total of BRL 597 million, 45% Helbor's share.
The home lendings exceeded BRL 477 million, an increase of 44% compared to the previous year, and 64% Helbor's share. The cash generation considering consolidated companies of BRL 16.5 million in the first quarter of 2025. Leverage reduced from 2.1 p.p., and this is the net debt. The results of the first quarter reflects the continuity of our solid growth, evolution of capital structure, and capacity of adaptation to a dynamic market. We keep our commitment with the generation of sustainable value. With this, I invite Marcelo Bonanata to show the main operational details. At the end, I will be available for questions and answers.
Good morning. Good morning, everybody. We would like to thank you for your attendance. On the first slide, we will talk about our land bank. Today, we have a potential PSV of BRL 12 billion with a 71% Helbor's share. We highlight here some developments. Of course, all our developments of high quality, but these are some lands that are iconic in São Paulo. One of the main one is República do Líbano, very close to the Ibirapuera Park, almost six square meters, a very prime land in São Paulo. We have another land at Jardins with 5,000 sq m of very high standard, large apartments, some of them at the higher area with a very beautiful view. We have another in Higienópolis area, Rua Bahia, with a total view to Pacaembu Estate and Itacolomi at Pacaembu, two lands that we have two complementary products.
One complements the other that will be launched in the third quarter of this year. Another highlight is an old land we had, the former Toshiba plant area. It is iconic project that we have there. 26,000 sq m with almost BRL 2 billion of total PSV. This is a new area in São Paulo with several years to be developed, but it's a good market reserve, and we believe very strongly in this piece of land. When we talk about land bank, we see that most of this land bank today in the Southeast region and talking about São Paulo and bigger São Paulo, we today are working in a very nice manner of the recycling of our land bank.
We have a piece of land in Rio de Janeiro, Cuiabá, Campo Grande, markets that we have no longer any workmanship and that we do not want to be there, and even some piece of lands in São Paulo that do not fit in our medium, high, and very high level. So we have a PSV of BRL 116 million, and we acquire very high standard piece of land, so recycle our land bank. We have other piece of lands that we can still negotiate to making the company or taking the company into the pathway we want.
That's what we want, and those piece of lands that are not in strategic points for Helbor have some other piece of lands that are in our pipeline, and this may happen in the next quarter. Marcelo highlighted the Santos piece of land. It is very similar to what we did in Caminhos da Lapa. Today it is one of the best Helbor's development. So this fits our project. As Marcelo mentioned, it's a differentiated piece of land, and it's in Itacolomi is the last piece of land with a view to the park.
In this quarter, we launched three developments. The first launch of Fazenda Itapety in Mogi, and the last phase we launched in this quarter, we have only less than 100 units to sell with a great valuation potential for the square meter. Clients are very satisfied. We launched another development at Anália Franco together in partnership with Cury within this process of recycling of our land bank.
We are in a partnership with Cury, which was a sales success, 92% sold and launched in São Bernardo, a big piece of land with the 55 sq m . We have a second phase now, and this development is responding well. So we had three new products launched into the market. In the following slide, we will talk about the contracted sales, highlighting that we had an increase of 40% in relation to the quarter of 2024. In the fourth quarter, it's a quarter that sells more. This is one of the quarters that we sold the most. We are happy, but we are not excited. We are with our feet on the ground knowing about the macroeconomic reality we are going through. We still had a good sales of our developments, but we are still selling our ready inventory and the inventory in under construction.
We had the largest event of inventory in Brazil, and it was another success. We did this in Mogi and in São Paulo. This boosts our sales both in developments under construction and ready ones. In this slide, we see the results of these contracted sales and boosting our Sales over Supply. Helbor's share, the ticket is 17 because we had the launch with the Cury, but the 17 or 21 are very significant indicators with the reality that we have now in the market. This shows that we are going on the right path. Our inventory is of BRL 2.3 billion and 97% in the Southeast region. We like to highlight this because we had pulverized developments all over Brazil, and today we are hardly focused in the Southeast region.
We are distributed by average high, high level, very high level, which is this recycling that we are talking about. This goes through the high and very high standard. It's our characteristic today. We strongly believe in this segment. But even our competitors and partners say that the quality of our land bank and our products allow us to work with the high and very high level segment. We show here our inventory with a great relief when we see the ready inventory in 2018 and the acute decrease we have in our country of almost BRL 2 billion of ready inventory, and today we have a little more than BRL 200 million.
But the Legacy inventory, over and over, we say that it is almost gone. We concluded a development in São Vicente, thinking, will this day come? And it came. If you look to our Legacy inventory, we have almost BRL 22 million, and the rest of the ready inventory were just delivered. This is normal, this transition moment from ready to what has just been delivered. When we talk about Legacy, 100% of this inventory, all residential with a good quality, and this is very important. Do you have any comments on this Legacy?
Well, the Legacy inventory has jeopardized our balance sheet. The real estate has a price decrease and this hurt the company because we had to sell the real estate, and now it's over. We see the new development with the proper margin. This is good. Leo, would you like to make any comment? Because when you came in, when you joined us, we were trying to zero this.
Yes. In ready inventory, we always had, but it's important to remember that the profile in 2018 and 2019 had a different profile with different products. Today, our ready inventory is basically residential with a very high degree of quality. This is something that we will go through easily. It's not a problem. It's a reserve of opportunity. All these products had their price increased and helped the margin of the company.
The next slide, we show the two deliveries we had in the first quarter in a very iconic project, the Patteo Klabin. The last phase was delivered in this first quarter. This is a giant development. Just for you to have an idea, we have 1,000 sq m. We have 300 apartment units and larger apartments of more than 100 sq m. We have more than 80% sold, and Leonardo will touch on this, 63% on the own lending. We are really happy complementing the delivery of Patteo Klabin. As Henry mentioned, we delivered one more phase of Caminhos da Lapa.
It's smaller apartments. We developed this with ATEGO and Toledo Ferrari. 72% sold, 66% on lending. We are transforming the entire region with an investment in the road mesh and transportation mesh, and renewing a manufacturing area that now is becoming a very good residential area. We still have a launch for this year, a very giant one. When we started, we started with BRL 6,500 the square meter , thinking that something would happen. Today we sell it, and we will reach BRL 14,000, BRL 15,000. It is the cheapest square meter we have in São Paulo. It's very nice to see and show everything you develop and imagine in areas that used to be manufacturing areas. In terms of on-lending, Leonardo, please take over. This is a very important moment.
Thank you. Bona. This slide shows our on-lending performance. 44% in relation to the first quarter 2024 is slightly below that quarter. I'd like to highlight that even with the credit restrictions in the area and many other points, our customers, they are getting credit conditions with our partner banks, and we don't see restrictions for individuals who acquire our development. This is important and keeps us with peace of mind. We have credit to our clients, and we will continue with this, with all this noise in the market and media. What we see on our day-to-day, our clients, they have credit, obviously with a higher cost, but it's still available. The next slide shows our delivery timeline. It's important to stress that these are the ones to be delivered in the first quarter. They have been, they are on the on-lending process, doing well.
Until the end of the year, we have eight more deliveries. This will be very important with all this being delivered and on-lent. This will help us in our de-leveraging process. Now, slide number 15. These are the financial results. Net operational revenue, basically stable year-by-year, quarter-by-quarter. You see our net operational revenue in gross margin. It's important to say that the company, we have a gross margin of about 30%, and we are able to deliver 31.5%. In this quarter, we have a great growth. We see them modeling this higher margin. Our margin is around 30%, slightly above or lower eventually. This is what we are signaling to the market. In the next slide, we have the backlog margin of an increase of 7.7 percentage points, or 0.7 percentage points. In the fourth quarter, it's important to realize that 65% comes from new projects.
Everything we have is the cycle going on in the company, and the new launches will show the backlog results. In the next slide, we have our SG&A in a very good behavior as we did in the previous quarter. It's important to see in the gray line below the 9% of DGA over the revenue and commercial expenses also in line with the previous quarter. The next slide shows the net profit of the holding company. Comparing, we had a 7% increase. When we compare fourth quarter 2024, it's important to remember we were assessing some units that we have been on rental, but this is something that is non-recurrent, and this will happen in the fourth quarter. The comparison base is first quarter 2024 and first quarter 2025.
In the next slide, we are showing at the left side the important reduction of the gross debt of the company from the fourth quarter 2024 to the first quarter of 2025. We show on the right side the debt breakdown. Most important, what we had in 2025, we had a very higher number to this when we showed in the last call of BRL 800 million. A good part of the debt was liquidated, and we are showing the visibility in the short- short term, showing that our liability management is working even in a more complicated credit and interest rate market. The next slide, showing that the trajectory of our debt under the net equity is decreasing. We went from 72% at the end of 2023 and now 53%.
It's important that we remember that this trajectory will go through the end of the year. It doesn't mean that we'll have this every quarter. We are working for it, but the leverage is closely related to the deliveries on lending and other subjects. The strategical trajectory will get down until the end of the year. We will go back to the margin we want. This is a healthy debt and necessary for the sector. In 2026, this will increase a little bit. The next slide, showing one more quarter with cash generation. We have two tables. The upper table are the companies that we consolidate in our balance sheet and the SPEs that we do not consolidate. Basically, Leopoldo or the allotment is not consolidated in our balance sheet. We also considered the cash totaling BRL 70 million on cash generation, including consolidated and non-consolidated.
These are our priorities to the 2025. Bona and Henry mentioned this, but just to reinforce an active commercial management with good projects, with a very attractive inventory and ensuring a consistent sales result. Second point, land bank management. We decided in the company where we should be operating and where we decided not to be present. We are with this strategy of selling the land bank that is not aligned with the company's strategy. We have eight more deliveries. This is very important for the company to serve our clients very well with the quality, and this helps us when we do the on lending. The next point is strategic launches in Grande São Paulo, Big São Paulo and Mogi. We will launch, let's feel the market and see how the market will react.
We still have products that we want to do, but we will not go to the market unless we feel the market. The last point is the discipline in cost management and leverage reduction. In the last 24 months, we've been talking about leverage reduction, and we are delivering it. So these are our priorities with the total transparency, and we are focused on delivering what we are committed to do. With this, close the presentation and we will open to the Q&A session.
We will open the Q&A session. If you want to ask a question, please type your question using the Q&A icon and followed by your name and company. [Non-English content]
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The next question is from Daniel Newsader. I am sorry for misspelling your name. Good morning. I am a Helbor's investor and I am following the results. Debt is getting down quarter- after- quarter. In one of the presentations, you project a launching of two developments, you launched three. What about the seven launch for the second quarter?
Yes, we were expecting to launch two, and one of these two is not a new launch, is the last stage of Fazenda Itapety. The other is one that we sold to Cury, but we became partner. The management is from Cury, is a different economic segment. This reflects the sales, 92% of units sold. I cannot tell you the number of launches we have in the third quarter, but we are prepared. We have projects that had signaling for this next quarter and working in the prospection part.
But tell you to affirm that we are going to launch will be a smaller number than the seven that we mentioned, because we want to launch products that will be well leveraged in a good moment of the market. We are not going to create new inventories. All launches have their natural sales curve, but we need to reach this natural curve. Launching for the sake of launching, it is better to wait.
I would like to add. Those who follow us see that we are reducing leverage and reduction of inventories and delivery of margin. So we are very cautious. So with everything that is happening, obviously, we will have some products on the shelf, so to say, and we see product by product. If the market has buyers and a good sales performance, we will launch. Otherwise, we wait for a better moment. [Non-English content]
Next question from Tomás Awad, 3R. Good morning. What is the amount of a piece of lands in this quarter? What was the impact on cash? And there was an accounting impact, and there are any piece of lands to be sold in 2025.
During 2024, we sold four piece of lands, no one in the first quarter, but in the second quarter, we sold already one of them. On accounting impact, since all piece of lands, we were able to overcome the acquisition price, the cash generation from piece of lands, we did not have any payment in the first quarter 2025, resulting from land selling. So we have no impact, neither negative nor positive. I do not know if it is clear, but if it is not, please, we will clarify later. Let us know.
[Non-English content] Question from Juliana Veiga, Itaú BBA. Thank you. I have two questions. I would like to understand a little bit more about the growth margin expectations until the end of the year, considering that in the second and third quarters of 2024, we had margins above this. And did you see any reduction in relation to last year?
Juliana, it is important to remember that the margin we report is a mix of under construction and ready inventory. We have some ready inventory with very high margins, as W, almost 50% of margin. What we see as recurrent margin is something around 30%. When you compare to the previous quarter, we had WMO with higher margins. That is why in 2024 we had higher margins. But we see for the future is around 30%. This is the first nuance. Then I'd like to clarify that reported margin is a composition of ready inventory that is ending and the positive margin. Okay? The second question, Bona will take over.
Juliana, first, thank you for your question. I'd like to say, when you say demand from the very high income level today, what I feel is that the beginning of this year is much more acute than the average of last year, especially because in the high level, high standard, we have moments for this demand. Today, what we have in our inventory of very high standard are ready units. Because first, the person lives well. They don't have a need for housing. So it's a moment that they buy before being constructed or buying closer to the delivery. So we have Figueira Leopoldo that will deliver in the next month. This demand really increased.
In relation to the very high level, we do have a demand, a very important demand, and many clients come to us because of the new lands that we have. These are iconic projects. We know that we have a good speed of selling in these developments, mainly because of the project, because it's a special project, and the person will see if they lose this opportunity, will hardly they will have another. The prices in the city of São Paulo, they are gradually increasing, but not increasing randomly, because you have to include costs more. This increase is being absorbed by the consumer. The client is realizing that if they miss the opportunity that fits what they want, tomorrow, maybe they won't have any other opportunity. So we see it with good eyes, with our foot on the ground, but this is a very good opportunity.
I'd like to add. The question is focused the high revenue. Those who buy a very expensive apartment of BRL 20 million, it's because they have liquidity. If they take a loan with a bank, they can have a very good financial gain, because when the CDI decrease, the reparation of this buyer is lower, they can prepay. But they can do this at any time. It's important to remember that to the very high level, those who have money applied on CDI, it's a very good moment because they have their cash issue with that.
[Non-English content]. The next question is from Luiz Jorgetto, from Blue Bank. Thank you. I'd like to know if the company intends to do new operations in the capital market, whether the portfolio anticipation or cooperated debt, comparing the strategy with the CRI issues.
Luiz, it's important to remember that we are a company of an intensive investment. We go to the capital market and the banking market, but always with a good planning and visibility. Going direct to your question, we will still get the resources from the corporate plan and also associate the capital market, therefore increase in moments that we consider timely, to build the proper capital structure we want in the company. We will continue to operate on both sides. The corporate plan as a business mode of the company and the capital market.
[Non-English content]. Last question for a while, Tomás Awad from 3R. How much the sales of 2024 generated cash?
Tomás, thank you. We already received for the sales of lands of 2024, BRL 65 million. A good part that these land sales over 2024 and now 2024, five, and also financial exchange, and they will be added to the BRL 65 million we have already received.
[Non-English content]. We are closing the Q&A session. We give the floor to Henry to company's final remarks.
Thank you very much. Helbor continues with a clear strategy. As we've been reporting for more than two years, the leverage reduction, inventory reduction at the right way and nothing has changed. This year, just like last year, will be a year of great deliveries. These deliveries will happen until June or July, and it's very good because the onlandings will be along the year, and it will be very similar to last year's, and this will help us in our deleveraging. In terms of launches, the main message is that we are very cautious. The company has been doing this for more than 40 years. We've been through good and bad winds.
This is a challenging year with a high interest rate, but the company has good products, good projects. We have a sales team that is exceptional. Last year, we break the record. We have 600 brokers in São Paulo, 80 in Mogi, and that's it. But we are being cautious and will continue with our strategy. I'd like to thank you for your attendance, Marcelo, Léo and our IR team. Thank you.
[Non-English content]. Helbor's video conference is now closed. We thank everyone for their participation and have a nice day.