Good morning, ladies and gentlemen. Thank you for waiting. Welcome to the PDG conference about the results of the first quarter of 2024. Here with us, we have Mr. Augusto Reis, Chief Executive Officer, Chief Financial Officer, and Investor Relations Officer. I would like to let you know that all participants will be only listening to the conference during the company's presentation, and then we will start a question and answer session. Before proceeding, we would like to clarify that any statements that may be made during the conference regarding the PDG Group's business prospects, projections, and operational and financial goals are beliefs and assumptions of the company's management based on currently available information. Considerations about the future are not a guarantee of performance as they involve risks, uncertainties, and assumptions and depend on events and circumstances that may or may not occur.
Investors should understand the general economic conditions, industry conditions, and other operational factors may affect the company's future and lead to results that differ materially from those expressed in projections. Now, I would like to give the floor to Augusto Reis, who will make the presentation. Please, Augusto, the floor is yours.
Thank you, Renato. Good morning, everybody. I hope that you are all well. I would like to thank you for your participation in our conference, where we're going to talk about the results of PDG referring to the first quarter of 2024. Before I go to our agenda of today, I would like to mention about some of our launchings, starting with the launching in Tatuapé. The ix. Tatuapé that is in its initial structural phase with the first floor already completed. Recently, we have concluded the first pavement, and currently, the venture has 11% of physical completion.
We continue to carry out the work on schedule and according to the costs, reinforcing our commitment to the companies and customers and partners and investors. I would like to remember that during the last quarter, Q4 '23, we launched ix. Santana, which is a product aimed at medium-high income, located in Santana, São Paulo, that has a PSV of BRL 160 million. It will be initiated in the second semester of this year. Additionally, we are working on the schedule for upcoming launches, one of which should be carried out in the second half of this year. We continue with our improvement and growth agenda, paying special attention to all aspects involving in upcoming launchings to generate more and more input for sale. Starting with our presentation, I will start with slide number 4, where we're going to present the main highlights of the period.
In this first quarter, we had a gross profit of BRL 1.3 million, 65% above the profit recorded in Q1 '23. With that, we recorded an increase of 5 percentage points in gross margin compared to Q1 '23, which totals 16.8% in Q1 '24. We recorded a 73% reduction in financial losses in the quarterly comparison, and we also recorded 68% reduction in net loss, also compared in the quarterly comparison. In April, we started PERSONALix., which is our unit customizing program, and currently it is available for ix. Tatuapé. In this, we offer some options of finishing kits so that customers can choose the one that they like most. Along with that, we try to offer special prices and a flexibility in payment so that they can, according to their financial capacity, receive their units ready to live in.
This program was designed with the aim to improve customer experiences and also diversify our source of revenue, adding value for our customers and the company. Other projects will also include PERSONALix. later on. Moving to slide 5, I will comment on another highlight of this quarter. In Q1 '24, as a result of our work within the scope of the digital journey, we launched the application, the ix. app of the ix. Incorporadora, which was designed and developed 100% digitally, and it has several functionalities, and it goes beyond a simple customer portal.
It is the only one in the sector that covers all the journey of the customer with the company from the search of the unit to post-purchase, including choosing the unit, purchasing proposal, sending documents, signing contract, financial management, contact with the customer experience team, monitoring the work, scheduling an inspection for delivery, carrying the transfer, receiving the keys, and requesting technical assistance. The launch of this ix. app reinforces our ongoing commitment to providing innovative solutions that enhance the home buying and property manage experience. We continue to develop the application to generate more benefits and value for our customers.
Now, going to slide 7, I would like to talk a little bit about the sales performance of the company. In Q1 '24, gross sales totaled BRL 15.1 million, 21% below Q1 '23, and slightly below of the company's projections. Sales from launches represent 48% of Q1 '24, and it will become more and more relevant in our sales results. During Q1 2024, our cancellations added to BRL 11 million, 23% below of the value recorded in Q1 '23. Also remembering that our cancellation continues to be an important lever to increase the volume of units available for sale. In Q1 '24, 47 units were transferred, which is equivalent to PSV of BRL 2.3 million, and a 24% reduction in the number of units transferred compared to Q1 '23. The volume transfer was impacted by the reduction in sales.
However, the result obtained was in line with the sales accomplished, reinforcing the operational efficiency of the team in this activity. Now on slide 8, talking a little bit about the company's inventory. We presented a composition of the inventory that actually for sale, that was around BRL 381 million, registering a reduction of 3% compared to Q4 '23, and an increase of 29% compared to Q1 '23. This increase was mainly due to the launch of ix. Santana in Q4 '23, and the monetary correction applied to our inventory. About the composition of this stock, this inventory, 37% refers to launches, 57% is located in the city of São Paulo. That, like we have always been saying, it's our main place of operations, and 67% is concentrated in residential products.
On slide 10, we present our general administrative and commercial expenses. General and administrative expenses were reduced by 25% in comparison to the previous quarter, mainly due to lower expenses with legal advisor services. Commercial expenses increased by 31% in the quarterly comparison due to higher expenses with the cost of carrying units ready in stock. With that, our G&A expenses added to our commercial expenses were reduced by 7% in the quarterly comparison. We continue constantly evaluating the company's structure and processes in order to keep them aligned with our financial strategy. On the next slide, slide 11, we present the variation in extra bankruptcy debt. The extra bankruptcy debt increased by BRL 12 million, 3% during Q1 2024, mainly due to the increase in interest in the period and the installment of financing the construction of ix. project in Tatuapé.
Moving to slide 12, I present the variation in competitive debt. The competitive debt increased by BRL 38 million, 3% during Q1 2024, mainly due to the increase in interest rates. Considering that we have already amortized BRL 1.5 billion in debts due to bankruptcy. Now going to slide 13, talking about the deleveraging. Adding the extra bankruptcy debt and competitive debt and costs to be incurred at the end of Q1 2024, the company's extended leverage totaled BRL 1.84 billion, an increase of 6% above Q4 2023. Regarding this amount of leverage, I highlight that competitive debts mature until 2042 and may be repaid through payment and through conversion into shares, in kind or in conversion into shares. extra bankruptcy debts continue to be renegotiated and may be eligible to Judicial Recovery over time.
On slide 14, we present the income statement in which I will highlight the main variations and impacts of the period. As I mentioned, we recorded a gross profit of BRL 1.3 million in Q1 2024, 76% above Q1 2023, and our gross margin totaled 16.8% in Q1 2024, five points above Q1 2023. In Q1 2024, the financial loss was BRL 41.3 million, 73% below what was recorded in Q1 2023, due to the reduction in extra bankruptcy debt resulting from the debt recalculation that was carried out in Q4 2023, like we said in our last call. The net loss in Q1 2024 was 68% below and it totaled BRL 66.9 million in Q1 2024. Due to the reduction in extra competitive debt resulting from the debt recalculation carried out in Q4 2023. From now on, as of now, our results should suffer less volatility.
In addition, the impact of the financial loss will be much less relevant in our statement of results in this first quarter, like we have noticed in this last demonstration that we have showed. In summary, this is it. I will wrap up here and open for questions, then I will come back to close our call.
Thank you, Augusto. Like Augusto mentioned, we're going to start our Q&A session. For you to send a question, you just need to click on the icon of Q&A that you can see on the right-hand downside of this platform. We will start with this question of Carla from Grow Invest. Congratulations on the results. About the financial expenditures, the amount registered in Q1 2024 will be recurring without the volatility of the prior results? The second question that Carla asked is, how are going to be the debts within the short range of the company?
Well, thank you, Carla. Thank you for the questions. Yes, our financial expense tends not to have the same volatility it had due to the recalculation of the extra debts. In addition to having a less monthly expense, this debt will be smaller as we finish our indebtedness. The impact of this financial expense a long time will not occur anymore. We are going to have less volatility. With regard to the short range indebtedness, we do not have any. All our indebtedness with the financing of ix. Tatuapé, they all are due at the end of the venture. We do not have any indebtedness within the short range. Everything is already forecast in our plan for the future.
Next question, coming from Rubens from DMC. Good morning. Congratulations on the results. The first question is about the non-competitive debts. Which non-competitive debts cannot be migrated?
Good morning, Rubens. Thank you for the questions. The extra competitive debts, the plan of the company is to continue the job that we have been conducting, negotiating individually with any of the creditors. As these negotiations evolve, naturally in what these debts already have as guarantees, as the negotiations happen, these guarantees will be valid for the payment of the indebtedness itself. Of course, that they follow commercial conditions with each of the creditors. Every time this negotiation proves to have a balance that is above each of these debts, the consequence of the payment of this debt that is not guaranteed is that they migrate to our competitive debt or non-competitive debts. So it goes to the approval plan.
Yes, answering your question. Your second question, these extra competitive debts, as they are negotiated, if they go beyond the individual guarantees, they will migrate, yes.
Just to remind you that for asking questions, you can click on the Q&A icon on the downside right side of this platform. Now we have a question from [Sisnorma]. Good morning. Congratulations on the results. The question is, how is the pipeline of launches for the company for this year and next year? The second question is, how are the ventures that will be launched in Tatuapé and Santana, when will you start the ventures in Santana?
Good morning, Alexandre. Thank you for the questions. Well, our launching pipeline fortunately is very advanced. I can say that we have our technical part and legal part of projects approval. I believe we only have the schedule of 2024 and 2025 already concluded in legal terms, in legalization terms. So it is in line with our planning. The ventures of ix. Tatuapé, like I have mentioned already, they are physically a little advanced because we advanced the work there, and it is also in line with our schedule. Like we have already anticipated, the beginning of the work, and it is still in line with our planning. We forecast that it will be finished before expected. Of course things can happen that can impact this initial anticipation, but it is not very likely that this would happen.
The idea is that the company will in fact anticipate the delivery date. Also aiming to bring better experiences to our customers. ix. Santana, the expectation is to start now in the second semester. Also it depends on the contract of sales of the units.
Two more questions from Alexandre. With the advancement of the launches, what should we expect from the DNA of the company? What is the strategy for construction? Will there be your own construction or third party constructions?
Well, our DNA currently, we do not have an expectation for it to grow within the short range. I think that for our launching pipeline for this year and next year, we have an appropriate structure, so we have no expectations for increments. With regard to the construction strategy, in our first launching of ix. Tatuapé, we have adopted the strategy of building with a partner because we understand that this is a moment to recover our operations and having a partner helping us at this moment would be a good idea, and it has been proving to be a right decision.
For the next one, we are going to analyze case by case. We are already analyzing the case of ix. Santana, both the option of following with internal construction and also evaluating the participation of third parties of outsourced ones. We are always going to evaluate the decision of constructing internally or externally based on what brings the best financial result to the project. So if we have a better condition with a partner that has the technical capacity to conduct the construction in a better way, of course, we will choose what brings more benefits to the project and therefore to the company.
Thank you very much, Augusto. With that, we finish our Q&A sessions of the results conference of PDG, and I will give the floor to Augusto again for his final considerations.
Thank you very much, Renato. Thank you everybody that participated, reinforcing that we continue here looking for the improvement of the efficiency of the company, always having in mind our strategy of providing better experiences to our customers and our investors relations channel is here available. If there were any questions that you forgot to ask or that you couldn't ask, feel free to get in touch with us in our investors relations channels. Thank you very much.
Thank you, Augusto. Just complementing, the investors relations is ri@pdg.com.br. Questions can be sent there, and it will be a pleasure to answer all your questions. Okay? So with that, we finish this conference and thank you for the participation and wish you all a great day. Thank you.