Good afternoon, ladies and gentlemen, and thank you for waiting. Welcome to Helbor's third quarter 2022 earnings conference call. This webcast is being recorded and simultaneously translated. If you need simultaneous translation, we have this tool available located at the bottom of your screen, the interpretation globe. Then you can choose the language you prefer, Portuguese or English. For those listening to the conference in English, there is an option to mute the original Portuguese audio just clicking on mute original audio. Participants will only watch and listen during the company's presentation, after which we will open for the Q&A session. If you need help or want to ask a question, please use the Q&A icon on the bottom of your screen.
Before proceeding, we would like to inform that any statement made during this webcast related to the company's business perspectives, projections, and operational and financial goals are based on the beliefs and assumptions of Helbor's management and on information currently available to the company. Forward-looking statements are not guarantee of the company's performance. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur. General economic conditions, industry conditions, and other operational factors can lead to future results that differ materially from those expressed in such forward-looking statements. Now I will turn the floor to Mr. Henry Borenstein, President of the company.
Good afternoon to all those who are watching this Helbor's earning conference call. Along with our Sales Director, Marcelo Bonanata, our Finance Investor Relations Officer, Franco Gerodetti, we are here to share review the company's results for the third quarter of 2022. Before starting this quarter's highlight, I would like to pay a posthumous tribute to our Board member, Mr. Paulo Libergott , who passed away on September 7th. I would like to leave a special thank for the relevant services he provided to the company, in addition to sending our condolences to the family. Talking about the third quarter of this year, it is worth mentioning that it remained challenging, just like the previous quarters. But once again, we managed to end the period with positive operational and financial indicators continuing the recovery cycle with favorable results generated by the company.
In this sense, it is worth noting that we recorded one of the best quarters of total sales and reached for the ninth consecutive quarter of net income. Regarding loans, we started selling two new developments that total a net PSV of BRL 228 million. Highlight for the first stage of the first phase of Fazenda Itapety, whose sales reached 9% by the end of the quarter. It is worth remembering that this is a project that still has a second phase that will be launched next year. We would also like to reinforce that we will continue to pay attention to the macroeconomic and market indicators before making a decision regarding the projects we plan to launch by the end of this year and beginning of the next year.
I take the opportunity to thank on behalf of Helbor for the trust placed by investors over the years and reaffirm our commitment maintaining our business model generating value for the shareholders and for the outstanding sector. Before closing, I'd like to point out that we had another event, [Non-English content] , on November 3rd and 6th in the city of São Paulo. On November 19 and 20, we will hold the same event in the cities of Mogi das Cruzes and Curitiba. The purpose of this event is to reduce the company's inventory finish, reinforcing once again the company's commitment to reduce its leverage and generating positive results. Now Franco Gerodetti and Marcelo Bonanata will present Helbor's main operational and financial data.
Thank you, Henry. I will go briefly by the highlights of the third quarter. As we mentioned before, we had a very relevant sales value. One of the best quarters in the history of the company, with 200% referring to the 40% of production and 40% of launching. The SoS launch was significant. We have what happened in this quarter with the PSV of BRL 2,000. Our net revenue was over BRL 277. Our gross margin reached 27.3%, keeping in line with what we saw in the last quarters. Finally, we have a commitment of BRL 10 million going for the ninth consecutive quarter of positive results for the company. I now give the floor to Bonanata that will talk about our operational performance.
Good afternoon. It's a good pleasure to be with you talking about our land bank. The total was BRL 10.1 billion, Helbor share BRL 6.2 billion, concentrated in 35 projects, and 71%, 2/3 of our land bank is in the city of São Paulo. The other part, 21%, in the Great São Paulo region, providing this mobility that we've been presenting. The next slide shows the distribution of our land bank. We do this according to the business model. It's a more inclusive model. We have no concentrations, neither in one single place or product. The company still holds land in very good places, Jardins, Itaim, Vila Nova Conceição, Moema, Chácara Santo Antônio. It's important to say that this year we launched some iconic developments. One in Jardins. We have almost 80% of the units sold. We started in March. So it shows the importance of launching in good locations.
You see in this map, we have places that are really well-known. In the last launches with BRL 7.7 billion potential and BRL 4.4 billion is the Helbor share of potential. Talking about launches that Henry mentioned, we had a great happiness of launching two developments this quarter. One, the so long-expected Fazenda Itapety with a big farm, and we have our expectations met. 80% of the units were sold. We saw the project and the importance that we were achieving with us over time, we were able to put into practice. We will start the second phase, 260 more allotments, and we will start the sales as of March next year. The other development launched was Helbor Patteo São Bernardo. Our Funchal line is a project where we have flexible apartments with service structure, giving to the client this convenience.
In a so competitive market like the city of São Bernardo, we sold 60%. Today, we have 72% of units sold, and we are ready to open the second phase, the second tower that we will open this month. It's a great success of this development. Contracted sales, as Franco mentioned, this is one of the quarters with greatest relevance. We raised BRL 470 million, 35% more than the last quarter, and 11% more than the quarter of the previous year. It's important to highlight this performance not only in the launches but also a strong work in the sales of our inventory and ready units. We had a slight drop, but it's in line with what we are working. The SoS, the total of 10.4, we went to 3.2, and Helbor share from 10.5- 11.5.
On the next slide, we see our inventory. It drops to BRL 3.2 billion. Helbor share in BRL 2 billion, 93 located in the Southeast. I think the composition is important. We have an important highlight of our high standard inventory. Since last year until now, we had an important performance in the sales of these high standard units. Much to do with the location we returned to the sales, and we've seen significant results. In Artefacto and Leopoldo, we are in line to launch a high standard project in Rua Lourenço de Almeida. This is just to confirm the high standard developments. Our ready inventory is selling well. Almost 20% of the total inventory. We always mention the legacy inventory, but we've been able every quarter, as Henry highlighted.
Last week, we had the Helbor Bank. It's the largest real estate sales in Brazil. We have two more, one in Curitiba and the other in Mogi. For sure will be very successful, and we will reduce our inventory. Now I'd like to ask Franco to continue with the financial data.
Thank you. This is our net operating revenue of BRL 267 million in this quarter. When you see the graph, it's important to remember that in 2021, we had a significant number of deliveries. As of 2022, we didn't have any deliveries this year. At the same time, we spent the entire year in construction for 2021/ 2022. We built without delivering. So an increase on revenue from the second to the third quarter. Later on, we will see the results of all this in the increase of our backlog revenue. This is our gross profit. As I mentioned, we continue keeping our gross margin in the same levels at 27%- 28%. As we mentioned in other points, Helbor's business model is slightly different from what we see in the market.
We don't have a construction company within our organization. We hire a third party. This is what creates the resilience of our gross margin. If you compare the margin we had from our legacy in 2021 to 2022, you see that even the legacy has a certain margin. This will continue to point to the margin we had some years ago, around 30%- 31%. As I mentioned, when we look our revenue and our margin, we are following our revenue here, results of the sales and the advancement of our works. So we have here our backlog margin next to 33%. This is the General & Administrative expenses. The company is very strict with this G&A. We are comparing 2021 with 2022. We saw a boost, an increase in inflation rates.
That's why in the annual comparison, we see an increase, but we are very comfortable in terms of G&A. Going very quickly through the net results of the parent company. We are in line with the last quarters. Obviously, what harms us a little is the debt level vis-a-vis the interest rate. You can see clearly that we are keeping the same level in the last quarters. Now talking about indebtedness. As I mentioned, this is the year that we don't have any deliveries, so there is no repairs, and I keep the financing to the production. This reflects on the company's cash and corporate debt. This was expected for 2022, a year with an increase of indebtedness. But we know that both 2023 and 2024 will be very strong years concerning deliveries that will balance the year of 2022. Our cash burn.
Due to everything I said, it was expected to have a quarter like we had this second quarter. Basically, two major factors. We still have some reinforcements and some efforts on the works. When we start the works until we reach the part of financing, we need to put our own resources. We did something with previous contracts. The policy of the land bank of the company is kept on hold because we are in a very comfortable position. But we had some commitments taken in the past. This will not affect the balance of the company. Basically, that's it. I'd like to thank you for your participation, and now we will open for the Q&A session.
In case you have a question, please send it through the icon, #Q&A. We have a question from [Bruno] from BTG.
Good afternoon. Can you comment how you found the market for sales in October, and what is the expectations for the end of the year? How do you think on the margins for the new phases of Fazenda Itapety? Will we have any change in size or target audience?
October was a good month. Slightly above our expectations because of the elections, but it was quite satisfactory. We sold off all things, and now in the beginning of December, our event, [Non-English content] , was a great success. Now I can say that October was satisfactory. November was also very good. Things are happening. It's not easy. We are working hard with this power to convince the client. But when the client sees, he decides to acquire it. It takes a little longer, but things are happening. Concerning Fazenda Rodeio, yes, the products are similar.
We map, but the sizes are similar, and we changed the pricing table. We retest the inflation on the tables. So we were able to see this actual gain. So we have good expectation for the development. It's important to highlight the sales of the high standard. The good news here is the retail of the W sales. The W was launched, but unfortunately, we had the pandemic with no stand, with no decorated unit. But we had to wait, and finally, its time has come. We start to sell in the second semester, and every month it's providing a good response. We have Cidade de São Paulo, close to Juscelino. It's a very important location in São Paulo. On Fazenda Rodeio, it's important to highlight the target audience. The first time, the first phase was for the people living around the city.
We didn't even start any advertising. Now that we will take the second phase to the market, we believe that will not be only the inhabitants of Mogi that will come. This will reach the other areas of São Paulo, Guarulhos, Osasco. Fazenda Itapety was the first development, 714 allotments, and we launched it. We have with the approval for another development, a second development in Fazenda Itapety with almost 600 allotments. This for the next years.
Our next question is from Bruno Mendonça from Bradesco.
What will be the strategies the company will put in practice to reduce leverage?
Thank you, Bruno, for your question. I think the strategy will be the same. To sell the units, generate cash, and pay our obligations. It's worth mentioning, when the leverage of the company increased, we had about BRL 2 billion of ready units paying condo and the taxes. So the value that we did in the last years. Another point to remember that is really important is that this year we didn't deliver any development. Just for you to have an idea, next year we have in inventory BRL 900 million. With BRL 200 million, we will have paid everything, and we have BRL 700 million, and then we see the leverage of the company reducing. This is a sector where things happen every quarter. We are here to meet our investors, but we do not build a development in three months.
So we are with great expectations. We are prepared for this new government, but operationally, Helbor has delivered good results for the size of the company. Every quarter we sell well, we improve the margin. So for sure, this so long-dreamed leverage will be started next year, and 2024 will be even smaller. If you look to this quarter that today the company has a higher volume of debt, of the things that were held. The funding of the works that are ongoing. Just to remind, when we talk about next year, when we get to the final day of all works of next year, we are talking about almost BRL 600 million. So when we deliver everything next year, we will have BRL 600 million and the expectation.
With this, we expect to have cash for the company, and we made the decision in a corporate operation. So this will be the scenario. 2024 is also with similar numbers with products that helped us in the last years to push to increase our margin. So we will do what we were expecting, leverage this increasing gross margin both for 2023 and 2024.
Our next question is from [Mariangela Castro]. She is asking to talk more about cash burn, the main reasons, and the expectations?
The main reason is we spend the year with no deliveries. We don't see that effect of cash generation at the beginning of the project. So this changes significantly next year. We'll have three deliveries next year. If you look, the PSV of this development that we are going to deliver is BRL 1.4 billion. This is the total PSV of all developments. So the expectation is that as of the second or third quarter, when we have a concentration of delivery, we will see a development. It starts in the beginning of next year with two products, and then we will continue until the end of the year, and 2024 also with very similar numbers. During the year, we had commitments with the parent company, both regarding the works and the pre-sales period with initial resources and the construction of stands.
We had something also to pay some piece of land, and we had the debt service that also impacts because the interest rate is very high, and this contributes negatively to our cash burn.
We have a question from Individual Investor, [Amadeo]. What about the mutual rescission in the new sales?
This is a good news we have. I would say that we consulted the legislation, we tested legislation, and it is really working. Our number of mutual rescission is very low nowadays, but very in line with the sector. Since next year we will have a larger number of deliveries, maybe there is some change. This is natural according to the cycle and the moment of the delivery. Fortunately, we are not so concerned, and we haven't seen any increase in the mutual rescissions request. I would like to add, we have been measuring this month- by- month. We are concerned with mutual rescission because we suffered a lot in the past. We see this by development by region.
In the recent past, we created the installment that traditionally would be paid in the key delivery. We anticipated it for. We advanced it for six months before. It seems it is silly or simple, but this made a difference. We do this with the client, or we sell the unit so we are able of having a good speed in relation to these risks. We are following month after month, even with all the adversities that the country is facing. The company decided to sign the agreement at the extent this will give us a better position. The client that bought Itapety, he already signed the deed and paid the taxes. We see the sector, and also Helbor, we suffered a lot, so we are very careful with this mutual rescission structure.
I think that is what we had for today. In case you have any other question or if you want any other type of information, please contact our IR team. These are the communication channels, and we have also our website. We are closing our earnings presentation, and I give the floor to Henry for final considerations.
Thank you. Our team, I would like to thank our collaborators and say that we are doing our job. We are concerned with this next year, but we are optimist. The company will only give to the market those developments that are worthy, and we will care for our leverage. The things we will deliver next year are perfect, and this is important with all the works on time within the costs. This is very positive, and I would like to thank for your participation. Have a nice afternoon.