Good afternoon, everyone, and thank you for waiting. Welcome to Helbor teleconference for results of the third quarter of 2023. We inform all of you that this session is being recorded and simultaneously translated. For those of you who need the interpretation, we have this icon, interpretation, at the bottom part of your Zoom screen. When you select the icon, you can select the language of your preference, Portuguese or English. For those of you who want to listen to the session in English, you have the option of selecting the option mute original audio. We also inform you that you will follow up this webcast during the company presentation, and then we will have a Q&A session. If you want to ask any question or you need any help, you should use the Q&A button at the bottom part of your Zoom screen as well.
What is more, some clarifications or explanations regarding the company's prospects, financial goals, are regarding the beliefs of our board of director. Other future considerations, risk, or uncertainties won't be guaranteed because this will happen in the future, therefore, this depends on different circumstances that may or may not happen. General conditions, reality, industry, sector, and so on and so forth, may affect the company results. That will be considered in the future. Now, I would like to give the floor to Henry Borenstein, president of our company. Henry, go ahead. The floor is yours.
Good afternoon, everyone participating in our teleconference. I am here with our financial Vice President of Relationships with Investor, Roberval Lanera Toffoli, and Marcelo Bonanata, sales director. We are here to talk about the results of the company regarding the third quarter of 2023.
We just closed another quarter with positive financial and operational indicators, and we are seeing the benefits of our strategy. During this period, we launched a new product, Helbor Open Mind, and the total amount is BRL 278 million, and we reached 32% of sold units. Regarding total sales, we have an accumulated of BRL 1.1 billion, and 89% of this value represent units that are ready to sell and in construction as well. This is a result of a strategy that we adopted during the period, focusing on the sales. We should highlight as well that the project, Fazenda Itapety, was acknowledged with the Real Estate Master Award 2023 in the category Professional (Urban Solutions), and this is the 12th award that we received.
Before closing, I would like to mention that there will be an event that is called Saldão Helbor in São Paulo. The same event was organized previously in Mogi das Cruzes in Curitiba in the last week of October. We are quite confident on the strategy that we are using to reduce our unit stocks, the ones ready to sell and the one under construction, and we are still focusing on continuous improvement of our financial and operational indicators. Now, Roberval Toffoli and Marcelo will present the results.
Good afternoon, everyone. I would like to start with the highlights of this quarter in slide number three, and we can see that total sales reached BRL 395 million. We got a reduction of 16% regarding the same period last year and 8% above compared with the previous quarter.
We should highlight as well that 76% of our sales are regarding ready-to-sell units and the ones in constructions, and only 24% are the units that we are launching. Regarding the speed of selling, the total value is 13.2%, and we realized that we got 1 percentage point increasement regarding the previous quarter, considering what was presented in the same period last year. Regarding financial highlights, our total net revenue was BRL 324 million, only 3% less if compared with the second quarter of this year, and we got an increase of 22% regarding the third quarter of last year. Our net profit, the consolidated one, was BRL 45 million during this quarter. The part that we assigned to the controller is BRL 8.5 million, and this leave us with a margin of 13.9%.
Finally, I like to highlight the reduction of the debts that we have in 6.4% when compared with the second quarter of 2023. What is more, there was a significant reduction of our cash burn of 82% when compared with the same period of last year, and a reduction of 70% when compared with the last quarter. Now I'll give the floor to Marcelo, and Marcelo will talk about our operational performance. Marcelo, the floor is yours.
Thank you, Roberval. Thank you, Henry. Good afternoon, everyone. Let's get started with the first slide. Here we have our land bank, the general one, and the potential of our company, and we have BRL 11.8 million, and BRL 7.8 billion is the estimated value of Helbor. I wanted to highlight that 76% is located in São Paulo and 19% in the metropolitan region of São Paulo.
This is linked to the strategy of our company during the last year. Now let's move to the next slide. Here we have the distribution of our land bank in São Paulo City. Here we are presenting in a very clear way, from the geographical point of view, how we have our different lands. We have BRL 9.1 billion in São Paulo, and the Helbor part is BRL 5.9 billion. Our land bank has always been of a good quality, and we have very well-located places with a very good quality. We have different projects. We have Leopoldina, Itaim, Mangalães, and considering our land bank, we have some products in Indianópolis, Jardins, Vila Nova. This is just somehow verifying the good quality of our land bank. When we are including this, everything happens when we buy land.
That's why we're very proud of our land bank, which is of a very high quality. In the next slide, we can present some new projects that we are launching in this quarter. The new one was Helbor Open Mind. Helbor Open Mind is in a region quite close to the Morumbi Shopping Mall. This is an area that we already bought in the company since 2010. We were saving this for a very specific moment when we had a good project. This happened, and we launched this in the third quarter of this year. We have 390 units. 32% of it was already sold. This is similar to Helbor Wide. It was inspired by Helbor Wide, which is a great success. This product is compact. In São Paulo, there are many questions about this type of solutions, only with one room.
This is a small studio. What we are prioritizing is the location and the differences that we have in this project. This project has a specific brand because we have a partnership with HBR . In the façade of the building, we have a very good alternative for those who will live or those who want to buy this to invest and then put it to rent. It's not only one unit with one room. Here we are focusing on giving the investors a good location and a good project. We also wanted to highlight the project, Fazenda Itapety. We have 100 lands here, 100 units. We launched this in the first quarter last year, and we work on the specific commercial distribution. We can see here that we are including every quarter new offers to create more demand.
We have a good rhythm in sales. We have good prices, and we're selling well. I wanted just to highlight that the idea and the projections that we had are slightly different, and we are trying to create even more demand. In the next slide, we're going to talk about the BRL 395 million of contracted sales that we had. Then we have 16% less than the third quarter of 2022. I'm mentioning this because we have a decrease of 16%, and this was mainly due to the launch of Fazenda Itapety in the third quarter of 2022. When we launched Fazenda Itapety, sales increased a lot. What is more important is that throughout the year, the speed of sales has been somehow balanced, and we increased in the second quarter of 2023.
In the first nine months, when we compare 2023 with 2022, we can see that there was a decrease. Probably because of what happened with Fazenda Itapety. I wanted you to observe that there was 58% less in the launch regarding the nine first months of 2022. This is linked to the strategy that our company adopted since the beginning of the year, because we are trying to be a little conservative regarding the market because there was some difference in the interest rates. Since we have a good quality stock, we try to dedicate this to the stock, and the sales that we have are pure in our stock. Even though there was a slight decrease during the nine months, this launch that we had help us preserve our company in the same level, and this is linked with the good strategy that we adopted. Do you want to comment on something?
I think that you explained it very well. Marcelo, you emphasized that the strategy that we got during this year, since the end of last year, was to focus on selling stock under construction and ready as well, precisely to leverage the strong points of our company.
In the next slide, we are talking about sales of offers, and we have some positive points when we compare with the second quarter of 2023. It's important to observe that sales of our offers were quite similar if we compare the third quarter of 2023 and the third quarter of 2022, even though in 2022 we sold more than 2023. It was good. This is something important because we sold a little less, but our stock decreased, so we kept the same sales speed.
Just to wrap up this part, this weekend, we will have another edition of our event. We have organized already 100 editions. It is the biggest event of stock in Brazil. Two weeks before, we organized an event in Mogi das Cruzes at Curitiba. It was a great success. During this weekend, tomorrow 11th and Sunday 12th, we will be here in Faria Lima welcoming our clients, and we are 100% sure it will be a great success as well. We will be able to wrap up this year in the best possible way, even though it was a very challenging year, specifically in terms of sales, it was quite satisfactory. Now I will give the floor to Roberval. We are going to talk about financial data.
Thank you, Marcelo. Now we are going to talk about the financial results of the third quarter of 2023, and the figures are talking about the sustainable results of our company. We are resuming this. Now we are here in slide number 12, and we are presenting the evolution of our net operating revenue, and it increased 34% if we compare it with the accumulated of the nine months of 2022. During the third quarter, our revenue was BRL 325 million, so it increased 22% when we compare it with the third quarter of 2022. There was a decrease of 3% when we compare the net operating revenue quarterly, in a quarterly comparison. Now moving to slide 13, we can see that the gross profit improved gradually. In the third quarter of 2023, we got BRL 94 million and a gross margin of 29%, and the net margin of 13.9%.
Those margins represent a trend of improvement in the results. This is proving the evolution of our participation in the sales of the products of new cycle and the new project that are being built and launched, and they have a stronger image. If we compare with the previous projects, they had, let us say, more compressed images, and they are in the process of reduction of stock. We can identify an improvement of the gross margin in the cumulative of the year, which is 28.1% compared to 27.6% recorded during the nine months of 2022. The gross margin was 13.6% of legacy, and the new cycle was 28.8% in the past nine months of this year. Moving forward to slide 14, we can see that the margin was 31.4%. If we compare it with the past quarter, it was better.
It was BRL 466 million of revenue. That way, we can keep a high level and a positive trend for the next quarter. In slide 15, we can see that the third quarter of 2023, general and administrative expenses presented a decrease of 1.9% vis-a-vis in the same period of last year, and there was a reduction of 7.6% when we compare with the second quarter of 2023. That way, we can prove that we are committed to control company's expenses. In slide 16, we can present the net result of the controller, our parent company, which was BRL 18.6 million in the third quarter of 2023. There was an increase of 16% when we compare with the previous quarter. When we compare this with the same period of the previous year, there was a decrease of 15.7%.
That decrease was due to the reduction of the result of the projects where Helbor was more represented and focusing specifically on the legacy of products. When we consider the accumulated of the year, the net profit was higher. In slide 17, we can show the debt profile of our company in the third quarter of 2023, and total debt was reduced in 6.4% when we compare this with the second quarter of 2023. It is important to highlight that the loans and the different construction finances suffered a reduction in both lines. The only addition of 10% was observed in these loans. In slide 18, we can share the net debt. It represented a reduction of 0.9 percentage points when we compare with the second quarter of 2023.
This proves that the strategy of our company in terms of results is giving us good results, and we are moving towards the first steps of a positive result. Finally, in slide 19, we can talk about cash burn. It was BRL 27 million in the third quarter of this year. It represented a reduction of 82% compared with the same period of last year, and a reduction of 70% when we compare it with the past quarter. This is due to the reduction of the debt that we already explained. Those are the most important points that we wanted to highlight. Thank you very much for your attention. Now, we'll open for the Q&A session. Thank you.
Good afternoon, everyone. We have a question from Bradesco BBI, and Marco Antonio de Carvalho, they made two questions on the same topic. Herman's question says like this, "Good afternoon, thank you for the session. I wanted to listen a little bit more of this process of deleverage of the company and how everything is going on regarding the deliveries." Marco Antonio said, "I like to hear a little bit more about the fourth quarter of 2023 and 2024, and how this will improve the capital structure of Helbor."
Good afternoon. Thank you for your question. Talking about deliveries, we are in November, and only during November, Helbor has three deliveries planned. We have three deliveries for November, one at the beginning of December and one in January as well. This is a short period from November to January. We'll have seven different projects that we will deliver. It has to do with our strategy as well.
Since the beginning of the year, the company wanted to focus on this deleveraging structure, and we're focusing on this right now. Herman wanted to hear a little bit more of this deleveraging process. This is happening already. In this quarter, we realized that there was a very significant reduction in terms of loans and CRIs regarding sales and stock, specifically apartments under construction, and the cash burn as well. The cash burn was BRL 150 million last year, and it reduced. This is showing that we have a trend of reducing our debt considering the deliveries on the different projects that we have. We should mention that we have very big projects to deliver that have a cash flow that is very good. For instance, we have a work that is being already about to be delivered.
We are very satisfied with the performance of that project. To sum up, regarding deleveraging, we will have a good year next year, and there are many projects that we are going to deliver. Even considering the projects that I already mentioned, the ones that we have planned for next year, we have 16 projects to deliver. We believe that we will be able to go back to the same leverage levels that we had before, the way we always worked. I do not know if you wanted to add something.
I just wanted to mention that these deliveries that we have for the end of the year will have an impact on our deleveraging process in the beginning of the year. This quarter is already showing this deleveraging trend, the seed that we have, and probably will solidify during 2024.
Yes, just to comment on what you mentioned about the projects that we have to deliver, we should highlight that most of them have a low stock level. Some of them are aligned to this deleveraging process because we already will be receiving some flow in the cash flow. We have a low level of stock. I also wanted to mention that, again, we are having another edition of this event next weekend, and our expectations are quite high. I believe that we will have a good weekend, and this will allow us to improve our sales level and the deleveraging process as well.
We have another question here from Marco Antonio. It says, "The increase of construction potential of the land located in São Paulo, in the capital, will impact the gross margin?
What would be the dimension of that, approximately?"
Okay, thank you for your question. São Paulo plan was approved, and right now, we are discussing a new law. In the next quarter, the company will be able to act on this after the law was approved, and we will have better information on the constructive potential of those areas, that land. Probably we will map what we were able to obtain from there. What I can say so far is that most of that land got at least 20% minimum of potential because we are getting a benefit of 20%. Some of those lands got a cumulative benefit, HIS and HMP, for instance, Butantã and Alvarenga. There is also one land that we have that might change from a different zone. If that happens, it will double the potential of it.
We do not want to celebrate any victory before that law is approved. Minimum, this 20% that I mentioned will be for sure, will happen for sure. We can already count on this. Do you want to add something?
No, I think that is it.
We have two more questions from Marco Antonio as well, and I am going to join them. So here it says, "Considering the different events, what type of projects were already launched in the fourth quarter and the different total values of Helbor?" Then it says, "The values reported for the fourth quarter of 2021 and fourth quarter of 2022 were quite weak compared to other. What are the expectations for the fourth quarter of 2023?"
Okay. First of all, thank you for your questions. We cannot talk about absolute values.
I just can mention that at the Mogi das Cruzes and Curitiba event, the results were higher than our expectations and than our goals. We are considering the projects that we have, and it is already better than our goals. This is already improving the performance of our fourth quarter of 2023, which will be already better than the fourth quarter of 2022, because last year it was impacted by a specific characteristic of our sector. This year we are focusing a lot on stock sales, so I believe that we will have a land talk, too, for this year at the end of November, probably. Our performance is focusing on stock. I am 100% sure that we will be above the results of the last quarter of 2021 and 2022 already.
I am sure that Mogi das Cruzes and Curitiba events were a success, and I am sure that in the next session, I will tell you that the next event that we have this weekend in São Paulo will be a success as well.
Here we have a question from Gabriel Mazzante. It says, "Good afternoon. Could you comment on your expectations for the event, São Elbertain?"
Hi, Gabriel. Thank you. I think that Henry already mentioned something about this. We have good expectations for this event, São Elbertain, here in São Paulo. That will be this weekend, Saturday and Sunday in São Paulo. We have very positive expectations. We are measuring this all the time, daily. We have been preparing for the last 15 days. We have met with the sales team, and we created a pipeline for the event, and this is way above our expectations already.
I am quite sure that we will have a very positive event. Of course, it will depend on the stock and different projects that we will have. We have tickets of BRL 350,000 and BRL 400,000. We have even some of high level of BRL 10 million, for instance. We have many options in our pipeline. This is the first time that we are not going to do it in our headquarters, but it is in another space in Faria Lima. We have very good and very positive expectations, and after the weekend, we can say a little bit more. Do you want to comment something on this?
No, what you just said, we have great expectations. Any of you who want to buy a property, it would be good to do it here. Of course, you have to come to São Elbertain.
We got a question from Danielle, and says, "Good afternoon. Thank you so much for this opportunity. Regarding the new directing plan, do you have any forecast?"
Good afternoon, Danielle. Thank you for your question. If I understood, you want to understand how is the return plan and how this will impact, right? It was approved, it was launched already, the directing or steering plan, and we are already discussing this new area division law that we were mentioning before. We will not be sure what will happen about this until the beginning of December here in São Paulo. As we mentioned before, we will have some benefits in our land bank. For instance, the solidarity quota will have 20% extra regarding what we can take advantage of in the construction.
We have some land as well that is included in the law, and there will be a possibility of increasing our potential. We do not want to say anything about it so far because this is still under discussion and the law has not been approved. Probably in the first quarter next year, we will have this approved and we will be able to explain what will happen with our land bank. What we can say now is that our land bank will increase the potential.
We have another question from Ademar de Lazari. "Good afternoon, everyone. Congratulations for the result. Would it be possible to share some information on the allocation of profit to the non-controlling party that has been growing quarter- after- quarter? For instance, are those more recent or more specific projects?"
Thank you, Ademar, for your question.
In fact, this higher allocation for the non-controlling party, it is linked to our sales of our ready-to-sell stock. Those are projects in which our participation was lower, let's say, was smaller. The trend for the future is to revert somehow the scenario and have the allocation for the controller being higher. Piggybacking on what Roberval said, in the new investment, Helbor has a higher participation in each project, so this will have an impact on our results. Another important topic is that we cannot consolidate some of them in our statements. If we have a good sell, it will have an impact on the result of the non-controlling party.
We have another question from Marco Antonio de Carvalho.
It says, "Considering they receive a different project of BRL 320 million, what will be the value in the fiduciary portfolio of Helbor, and what will be the value that will be object of passing forward?"
Our strategy has been to share maximum as possible. Our objective is not to keep this in the portfolio. The volume that we have of different cases with fiduciary alienation are sales of commercial properties from the past. In this portfolio, probably, we will have a different process. Our goal here is to transfer as much as possible to reduce the debt. This fiduciary alienation of our portfolio is not very relevant, but this could be reduced as well.
We have a question from Hudson Cardoso Xavier. It says, "Good afternoon.
Is it possible to share an estimation of when the W Residences will be delivered?"
W Residences is in the final stage. We have only one tower with apartments, residential apartments, and then we have a part destined to the hotel. The hotel part will be for next year, first quarter next year, and the residences will be this year. We already started the control process with our engineering team. The documentation part is already done. The Regulation of the property, the building itself, it is okay. Probably we expect to deliver this at the end of this month or during the first fortnight of December.
We have another question from Marco Antonio de Carvalho. It says, "Trinity product was already launched? If yes, what is the total value, and what is the part of Helbor?"
Thank you, Marco Antonio, for your question. This was launched last week and is 50% of Helbor, is a partnership with MPD Engenharia, and the total value is BRL 230 million or BRL 240 million.
We have another question from Marco Antonio de Carvalho. I'm sorry, I didn't see this one before. It says, "Considering this project, is it possible to launch it in 2023?"
Yes, we're working on this. As I mentioned before, the estimation is to launch it at the end of the fourth quarter. Helbor participation is 50%. We have a partnership with the same company. The first part is apartment of 220 sq m and is BRL 190 million. I wanted to mention that this product is very different. It's in Perdizes neighborhood, and this is a better neighborhood, let's say. It's in the street Monte Alegre. It's quite close to PUC-University. So this is an area of a very high standard.
There are not really many offers or many new launches in that area. We started the process 15 days ago. We already have a lot of spontaneous requests. Many people checking. We haven't even started the showroom part, but we expect very positive results. The tower with the bigger apartments will be launched this year, and then we'll have a more compact option. But we have very positive and good expectations for this year.
We would like to thank you all for your participation. We already answered all the questions. We are going to finish our presentation. I'd like to give the floor to Henry for the final remarks.
Thank you, Roberval. Thank you, Marcelo. I wanted to thank everyone who were a part of this video conference. I wanted to invite all of you who would like to visit us in our office here in Faria Lima. I also wanted to thank our investment relations teams. Good afternoon, everyone.