Or when selecting, select the language, Portuguese or English. You can also mute the original audio in Portuguese, clicking on mute. Participants will only watch and listen during the company's presentation, after which we will open 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 operation and financial goals are based on the beliefs and assumptions of Helbor's management, and on information currently available to the companies. 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. From those expressed in such forward-looking statements. Now, I will turn the floor to Mr. Henry Borenstein, our CEO. Please, the floor is yours.
Good afternoon, everybody. Following this, Helbor, Marcelo Bonanata, our Director of Financial and Investor Relations, Franco Gerodetti. We are here to talk about Helbor's second quarter 2022 results. I would like to start by highlighting that the second quarter of 2022 was challenging, but we were able to close the period with positive operational and financial indicators, continuing the cycle of recovering the favorable results generated by the company.
Generated by the company that is being every quarter improving. We launched three new. That totalizing BRL 388 m illion. About the sales, this year, we had another event, Só Helbor Tem, in the cities of São Paulo, Mogi das Cruzes, and Curitiba, that accounted for 21% of the total sales of the period, what shows the efforts of the company in reducing its ready units and in construction. We also had the meeting to introduce Fazenda Itapety. The first phase of the project sums a gross total VGV of BRL 500 million and represents a new landmark. Before closing, I would like to mention that we will continue aware of the macroeconomic and market indicators before taking any decisions relating to projects.
I'd like also to thank on behalf of Helbor for the trust that investors have on us over the years, and reaffirming the commitment with the maintenance of this business model, the generation of the shareholder values, and maintenance of the company among one of the largest in this sector. Franco Gerodetti and Marcelo Bonanata will present the major operational and financial results of Helbor.
Going quickly for the highlights of the second quarter. Our total gross sales reached BRL 374 million in the second Q, and 25.8% account for the ready units sales, 60% in construction, and 13.6% of launches. The total VSO, we reached 10.4%. The VSO of launches, excluding those developments that had been launched previously, reached almost 70%. In the second quarter, we launched five developments totaling BRL 388 million. The net operational revenue totaled BRL 214 million, 1.7% more. Our gross margin is the same level of the last quarters, 27%. In the second quarter, at 27.3%, a 2.4% increase compared to the second quarter of 2021. Our net profit was BRL 12 million, keeping the trend of positive results. I'd like to give the floor to Marcelo Bonanata, who will share with you our operational performance.
Thank you. Good afternoon, everybody. I will talk about our land bank. Total of BRL 10.3 billion, Helbor share BRL 6.4 billion. It's nice to highlight, we have 37 projects. We have enough for three and four years, most of them in São Paulo, with 64% located in the city of São Paulo. Then in the great São Paulo, São Bernardo, Mogi das Cruzes, Campinas, Santos. We have a good diversity, so a higher concentration in the state of São Paulo. In this screen, you see the distribution of our land bank in the city of São Paulo, with a great potential of BRL 7.2 billion and Helbor share BRL 4.1 billion.
You see that they are located in the best locations of the city, in neighborhoods like Jardins, Itaim, Moema, Chácara Santo Antônio. In a recent survey in the city of São Paulo, the five best addresses of the city, and among these five, we have land in three of them. This shows the quality and diversity of Helbor's land bank. Here are the launches of the second quarter of 2022. We totaled BRL 388 million, Helbor share BRL 289 million. Of the five development, two were the opening. Three new launches, and I'd like to highlight the Double Life by Helbor in the neighborhood of Jardins. We launched in 31 of July, and in one weekend, we sold 22% of the development.
It's a complex with corporate rooms and apartments with one room. It's in the mid and high level, but we anticipated the value, so it shows when we have a development in a good location, we do a good job. These are the highlights of the quarter and one more event, Só Helbor Tem, and we totaled 103 editions of this event. This is the highest, the biggest real estate event in Brazil. Nobody has held an event like this. BRL 77 million in sales, 21% we sold in the quarter, 124 units sold, 54% ready units and 46% in construction, changing the profile of other editions of Só Helbor Tem. We were already connected. The next slide, we will see the sales contracted in the quarter. Helbor made BRL 374 million with a 15% increase compared to 2022.
In the semester's sales, we did BRL 699 million, a drop of 11% compared to 2021. But in the first semester of 2021, we made two operations. One was the sales of a complete unit. If we subtract the value of these two operations in the semester, we will be very close showing the velocity of sales of the company, even in a year like last year. Here we see the evolution of our VSO, 10.1%, an increase in relation to the first quarter of 2022. In this slide, we see the inventory in relation to our inventory is BRL 3.3 million. Between mid High and very high standard. It was a highlight in our sales. Today, it's a very special line of this high and very high standard. This is a very important niche.
You can see how it is distributed in relation to in construction and in launching. Today, we reached 21% of our total inventory in relation to the ready units. In 2019, we have 60%, 59%, then we had BRL 65 million, and we see the situation of our inventory was what was launched in 2021, 2022. Meaning that we have a very healthy inventory. The most important is that year by year, semester by semester, day after day, we are decreasing the ready units inventory, but with a higher concentration in what we launched in 2021 and 2022 in the best way. Now, I will give the floor to have our financial data.
I will talk about our net operational revenue. This is a semestral comparison. The operational revenue was almost in the same level. When we look at the slide, we see a drop of 16%, but I'd like to remind you that at the end of the first semester of 2021, we did a sales of a commercial building. This makes sense. There's a very similar volume we had in 2021. In the next slide, this is where we've been talking to you for some years, the improvement of our gross margin. It continues at the 28%, and we look quarter by quarter. We see what the behavior of the margin, depending on what was sold, what is being sold. But in general, we continue with this trend of high.
We intend that this drop in the second tree, we will continue to increase or to keep the same level. Two interesting points here. The first, this has proved that even in these situations, it does not impact our profit margin. The second point is that what was sold in this quarter of legacy gave a superior result. That is almost the same. In our next slide, we have appropriate margin. Slightly dropped, 34%, but once again, the result of what was sold in this quarter and the units in production are still positive. This will give space in our gross margin, which is very important so we can increase the profitability. In the next slide, this is our G&A. It's interesting to show the results and comment on them. We had a slight increase of 10%.
[ Non-English content] We are in a low point. But we had an increase in this moment. We reached the maximum point. Next year, we will see an improvement in the next period, depending on what we have. Now, the [ Non-English content]
This is the main reason for having this slight increase in indebtedness. And it's important to highlight that in the second quarter, we had a position that is necessary to our developments since the beginning of the project. So this will make it possible to continue with the project and reach what is necessary to keep the profitability of this project. Another point is, since it is a different year, we have an increase in the works funding, but
[Non-English content] With a slight increase, but again, directed for the future of the project. Our cash burn was impacted by the delivery. We see a different trend in 2023 and in 2024. If you look to December of 2022 until December of 2023, the company will have the same loans in this period, almost BRL 1.3 billion. For you to have an idea, these progresses, when the projects reach their conclusion, will have more than BRL 600 million, just settling it. In 2024, we will see the settlement of all this production, and obviously, this will have a very positive impact in our indebtedness and in our cash burn. It is also important to highlight this has been directed to the project because we have these conditions. We also had the payment for land that we acquired one year, two years ago.
So these were already in our payment flow and the beginning of works. [Non-English content] Now, we will open the Q&A session. So please, as I mentioned, you can go to the Q&A. [Non-English content] The first question is from Bruno Mendonça, Bradesco BBI. Thank you Bruno for your participation and question. He has two questions. First: How do you see the competition?
[ Non-English content] Thank you for the question, Bruno. We are not participating in this land competition. The company has three to four years for- [ Non-English content] This land bank and well-located neighborhoods in São Paulo and many things in the high and very high level and differentiated products. We have different products in the market as the lodging that we will launch again. We are out of this competition because it does not make sense. The company are not looking for land and land we ba- [ Non-English content] Example, the company had a repass of BRL 1 million. This year- [ Non-English content] Delivery. The company will delivery 14 development. We have many things to be sell. This is a year that will get some more financing priority for our works, for the construction, because these are long-
[ Non-English content] Will be years of a lot of deliveries and cash burn.
[ Non-English content] And delivered in May 2023. Is there any commercial strategy for this?
Marcos, thank you for your question. This is Marcelo. [ Non-English content] . The W we launched [ Non-English content] We will start with a new campaign. We have already the material for TV and newspapers. In the first week of September, we will have the entire structure. If you pass by the site, everything is covered now, but we will open that with a neon light and we will be able to talk about the W Residences again very strongly with a new meeting, including. Well, it is in firsthand this week, without these elements, even without them, we have already sold five or six units. It is the result of the work of the team. It is a new moment, it is a new store. It is an asset of a high value.
We open with a price for the region, and the price is very good for the region, and it is almost ready. [ Non-English content] Competition Cidade Matarazzo, which is another location, excellent standard with a value high above, and many clients compare. This movement of sales, even without going to the media, is being very important. It is a very special moment, and your question was very good.
I would like to comment, this work, this development will give us the opportunity to sell it until the last year. [ Non-English content] It will have a sales speed very good. This is a real estate development. It has a velocity of sales during the launching, some better, some worse. Then you have the moment when you start the works, and then the sales naturally drop. Because you do not have a decorated department, you do not have a sales team. It happens with all developments. Then comes the moment when you have the decorated in the tower, which is going to happen now.
So I will be with Marcelo and the sales team with high expectations that we have to deliver next year because it is related to our cash generation. So we have well-located products in São Paulo with good margins and adjusted price. This will reduce the leverage and take everything to the level it has always been.
The second question of Marcos Antônio relates to Fazenda Itapety. What is the expected margin with the VGV initially forecast of BRL 350 million and now BRL 500 million?
Well, in margin, we expect something around 35%. This is a very important product in terms of launching. The strategy is different from incorporation. You see many launchings with exchange [ Non-English content] Costs of construction. That was very important for this match. This is with good price for the square meter, and we have very good expectations to launch this product. As I said, it's a differentiated product for the region. What happened, because of the pandemic, we saw many-
[ Non-English content] Franco, a Helbor- Allotments valued. The market of lots surprised the real estate market as a whole. The prices increased, and Helbor will surf this moment now, because we had an increment in cost, but also in sales price and in this allotment. The same thing when the buyer of this product was priority of the state of São Paulo. Now we see people from around São Paulo, Guarulhos, the east area of São Paulo, looking to this development. Just reminding, Marcos, this is the first phase. We are waiting for the approval of more 714 lots. So this work, this development, will bring very good news for the company.
[ Non-English content] The next question is from Hugo Grassi, Citibank. Thank you for your question. Congratulations for the result. On margins and inventory management, how are you guiding the repricing of the inventory in the different segmentations of income? Do you intend to maximize margins or do you prioritize the velocity of sales?
Well, the financial area is doing this constantly. We look-[ Non-English content] is enough. We also follow this line, but basically, we look to all the places. We have our products. When you see the margin of our legacy, we show mathematically how we are reducing it. We are selling our legacy. So we are trying to advance in both sides, maximize the margin. We- [ Non-English content]
It's very important to deliver the products that are in construction next year. This will be very important for our cash generation. The point here is to have a velocity margin, but we are focusing on the new launches. You see the margin of the new launches, we have the margin that the company has always had. What is legacy, especially at this moment, that we have everything linked to the operations in the past, we are also focusing on this. We are looking to all of this, the legacy, the new launches and obviously hoping to have sales velocity. The company has a very good team and we were able to repass this increase in cost. In the developments of a high level, like the one at Leopoldo Couto de Magalhães.
I'd like to make a comment here on our strategy. At the end of the month, Henry and myself, we sit together and we see the- [ Non-English content] . The sales velocity during the month. We open and stay two, three days working on this, where it is, where it is not. We two together study this. We analyze all the possibilities of development and what continues to sell very prudent with the margin and pricing.
[Non-English content] And the profile changed. And this detail of the commercials. We had three developments that we had a commercial problem with three hotels, Curitiba and Santos, and hotels are not selling. So how can you sell something that the person cannot use? So we revert Curitiba and Alphaville. These have been reverted and Santos, we are just reverting it to residential units. So three developments that were on hold in the company's inventory. And now, very soon, they will regain the sales velocity and will show how we changed our profile.
[Non-English content]
[Non-English content]
It's important for us. Thank you, Marcelo. The second part of your question, Bruno, relates to our clients portfolio. He's asking what is the average LTV of the portfolio and how do you see the expectations for this client, if there is any policy to foster this and if you can comment the default of your portfolio.
Well, if you look back some years ago, we had this strong structure. Our portfolio today is better. [ Non-English content] It is a portfolio that is indexed to IGP-M and part of it indexed to IPCA. We didn't have any campaigns that client would ask for an advancement. When we see this unity with own resources and bank finance.
[Non-English content] It is a decision between the financial department and the commercial. What is the current price, how much the client paid in advance, and then we take this into consideration to make our decisions. This is our performance. For default, up to now, we haven't seen a significant increase in the default. We are with the same levels that we had at the end of last year, so no red light that could call our attention. In terms of mutual rescission, the same. We had a high drop in the last year. We consider the second semester almost in the cruise velocity, and we are on the same line this year. What we feel an increase of the client that pays the first installment and then gets scared with the INCC. But at the end, when you offer an intermediary discount or to alleviate semestral installment, the-
[Non-English content] That we will think by the end of the year, we are much closer to.
[ Non-English content] This project has the purpose of helping to get the financing. If any problem appears, we will study this. The company is very focused and looking to our portfolio about this. Only another point I'd like to add. What could happen would be a change in the credit approval by the financial institutions. If we see any changes, if we were seeing any impact of it, we see just the opposite. The largest players that support us are large private banks, and they still have a great appetite for financing, for the real estate credit, and paying around 9%. But in terms of assessment, we saw Itaú extending their term for 420 months. So they still achieve or to reach that buyer that was out of their ceiling because of the price increase. So this is also helping us to not having an increase in mutual rescissions.
We have one more question from Marcos, individual investor. He asked about the Sea Park.
Marcos, this is our project. It is a volume and a need that was foreseen since the approval of the project. Without this on lending, the project could have been discarded. This is still a very interesting project in terms of margin and financial results. The company has this very good land, and we are surfing on the success of Pátio Gianetti that changed the price of the region. It is in front of it, and this changed the level of the product today. We have bicycle tracks and very other improvements, everything in Pinheiros. This in Marginal is the same. As I said, the price was leveraged by Pátio Gianetti and will help us in this new development. It is very interesting and nice.
Marcos also asked here, considering July and August, how are our numbers?
We had July of 2020 and 2021. Returning to the old levels. August is already in the levels above the July levels. Henry asks me how are the sales. Our thermometer was always the volume of proposals, volume of commitment, and this is very good. August is now a very strong moment. The company will get the spring in the third quarter. We have the allotment, as I said. We need to remember that we will have elections in the second semester and the World Cup, two events that may affect our sector. We are focusing on making a very good third quarter. We have also the Itapety, but we will launch in August, possibly on the 27th, our project in São Bernardo do Campo, Pátio São Bernardo.
It is a project that should have been launched at the end of 2021. We were delaying due to approvals. It is an event for more than 200 brokers. Expectations. Now people are really expecting to see this Pátio São Bernardo. Then we will have another launch in Vila Nova Conceição, and our housing works with the active offer incentive of the broker. We want to work very hard to make it. In qualitative terms, investors. The investor is no longer in this sector. With this return of the interest rates, it will not compromise the investor that has actively participated in the developments. The development we had at Brigadeiro with the presence of investors, we were slightly concerned with the reaction, but it was a product of extreme success, high percentage of sales, above what we expected.
We always have a very conservative curve, but massive presence of investors. Many people coming and say, "I want to diversify. I think this is a good region." They bought. They took their money from the fixed income investment and bought the real estate. This is really surprising. When you see a differentiated project in a differentiated location with a price that is good. In Jardins, the average at BRL 29,000, BRL 30,000. It is a very good price. When we talk to investor is that it changed. Today, we have a very strong work that is started some years ago. People are selling for long stay in partnership with other continent. We guarantee rent profitability that is great.
The model of the past of a lender and today we have security for your real estate, but also the companies take care of the decoration and management with a better profitability. This made it easy to bring the investor with a possibility of increase in valuation. We have only good projects.
We have another question of Marcio. What correspond- Where the client continues to the portfolio only not to have this mutual rescission. If you go back to 2017, 2018, and 2019, the company opt for securitizations for the portfolio. From then, we had a smaller part of the portfolio with this direct financing. [Non-English content]
Another financing for products that we want to foster the sales. For instance, our office unit tent. We know the conditions of the banks for these commercial units are not so good. They reach the level of 70 and the terms are not so good. We see the intention of creating a portfolio to sell some of these products where we have our greatest challenges. But the objective is to carry for more three, four years and maybe then to sell it. But it's a portfolio that until now is very healthy. We have a last question about the launching of Fazenda Itapety. As we mentioned, the event was very good here in Mogi das Cruzes. The temperature is very good for it, and we will do this in the beginning of September.
[Non-English content] via LinkedIn. We close the call of the second quarter and we go the floor to Henry.
[ Non-English content] Let's see. But we are very careful. The message is to launch only what we understand.