Good afternoon, ladies and gentlemen. We would like to begin our conference call for the earnings of Plano & Plano. Be informed that this event is being recorded, and all the participants will be in the listen mode only. Next, we will have a Q&A session when further instructions will be supplied. If you need any assistance during the conference call, please request the help of an operator dialing asterisk zero. This event is also being transmitted via internet and can be accessed at ri.planoeplano.com.br, clicking on the banner Webcast. The slides of the presentation are available for download. The information is available in BRL IFRS according to the needs in Brazil.
Before beginning, we would like to mention that any declarations made concerning the business perspectives of Plano & Plano projections and operational goals, financial goals, are based on beliefs and assumptions of the company's management, as well as on information currently available. Forward-looking statements are not guarantees. They involve future events and depend on circumstances that may or may not occur. Investors should understand that general economic conditions, industry conditions, and other operational factors may affect the future performance of Plano & Plano and may lead to results that may differ materially from those expressed.
Today, we have the presence of Rodrigo Luna and João Hopp, respectively Director Vice-President and CFO and Investor Relations Director of Plano & Plano. Now, I'd like to pass the floor to Mr. Rodrigo Luna, Director Vice-President, who will begin the presentation. Mr. Rodrigo, you have the floor.
Good afternoon. Thank you very much for participating in our conference call concerning Q2 2023. Please, let's begin with slide number five. In accordance with the plan in the last few years, Plano & Plano has delivered sustainable growth and improved its management in many fronts, making the company more resilient and capable of taking advantage of the opportunities in the Brazilian real estate market. Our efforts helped us to reach, once again, record sales in a quarter, BRL 579 million, 52% above the same period of the previous years.
During this year, we sold 2,675 apartments. The growth of the launches was expressive, a growth of 65% in relation to Q2 2022 with BRL 589 million in VGV. We introduced not only good products but strengthens our position as one of the leaders in the sector, especially in the metropolitan region of São Paulo, the main market in Brazil.
This is a direct result of well-planned operations and projects taking care of the demands of the market. Another relevant point is the healthy gross margin, 38.3%, and this is 9.6 percentage points higher than the margin in the same period of the previous year. The net margin went from 5.7% in 2022 to 14.2% in this quarter, expressive growth of 8.5 percentage points. Another important highlight in Q2 2023 is in here, BRL 69 million, highest amount in any quarter. In comparison with last year, the growth was 257%. This shows not only our resilience but the strength of our business strategy. The purchase of land continues to happen, almost all of them in exchange to maintain our business model light in assets. Even with accelerated launches, we have BRL 13 billion in plots of land.
During the last few months, Minha Casa, Minha Vida program suffered changes by the government, and there were changes in the interest rate and the maximum value. For São Paulo, it went from BRL 265,000- BRL 350,000. These changes have a positive impact on the buying power of the clients, allowing more families to participate in the government housing program and also including our products that are available and to be launched. Plano & Plano sees these changes in an optimistic way due to its market positioning and due to the profile of its clients. We hope to contribute to reduce the deficit of housing in the city of São Paulo. With the new government program, Pode Entrar, we are evaluating the documentation. The government will choose the projects, and we have submitted our projects to the government.
We will work in a profitable way and with controlled risk. Now I would like to pass the floor to Mr. João Hopp, our CFO, who will talk about the operational and financial highlights.
Thank you, Luna. Good afternoon. Slide number seven. Net sales, 100% in Q2 2022, BRL 547 million, 52% higher than the BRL 380 million in Q2 2022, and 5.9% higher than Q1 2023. This result brings a new record for quarterly sales. The company launched in Q2 six new projects, six new buildings, and including exchange of BRL 589 million, an increase of 49.4% in relation to the BRL 394 million in Q2 last year. Year to date, Plano & Plano launched BRL 1 billion and 90 million in VGV. Slide nine, please. on June 30, the VSO of the last 12 months was 49%.
When comparing with the previous quarter, 1.9% more, and 48% in comparison with June 30, 2022. There was an improvement that is even more expressive in VSO, 8.5 percentage points. The increase in VSO was consistent in the last quarters with a better sales management and alignment of products sold. Slide 11. Net revenue of the company, BRL 485 million, 43.1% higher than in Q2 2022. In comparison with the revenue of BRL 390 million of Q1, the revenue had an evolution of 24.4%. The revenue has continued solid, and we are selling the launches and our inventory using percentage of completion. Next slide. The company delivered an adjusted gross margin. The actions during the last quarters in development of new products and the results of the year are in line with our work focused on recovering margin.
We have the results of the first semester of 2023, which reached a gross adjusted margin of 38.4%. In the second quarter of 2023, adjusted gross profit, BRL 186 million, and the gross adjusted margin, 38.3%. An expressive increase of 9.6 percentage points in relation to Q2 2022. This improvement in results is in line with the margins that we had in the previous quarter. We continue working to improve its margins gradually and also gains in VSO.
In this quarter, the margin once again went from 38.3%- 40.3% in Q2 2023, representing an improvement of 2 percentage points. During the last quarter, the company made many actions to improve its historical margins. With the actions, for example, we increased prices according to inflation. The company also tried to update its contracts to have higher margins. The results shows that we are improving as the construction proceeds.
Also, we did a detailed review of the projects, always optimizing expenses, also renegotiating contracts with key suppliers. The increase in sales expenses in Q2 2023 in relation to the previous year happened in part due to the expressive increase in sales that grew 52%, while expenses went up 46% in the same period. When we measure expenses on revenue, Q2 had an improvement when compared to Q1 2023, dropping 12.7%- 12%. With this drop, 12.7%- 12%.
The company has a solid, sustainable growth during the years and has made efforts to support the new levels with the expectation of continuous growth and new launches. We have hired specialized employees to help us implement the new projects. There was a reduction in managerial expenses, administrative expenses, 5.8%, while in Q1, managerial expenses represented 7%. Also last year, administrative expenses represented 6.2% of net revenue.
Net profit reached BRL 69 million in Q2 2023, with an expressive growth of 257% in relation to the same period last year. The company has been working in all the processes from acquisition of plots of lands, development, construction, and sales to increase its efficiency. Additionally, we hope that the increase in productivity by investing in information technology will improve our result.
We hope to have constant increases in gross margin and net margin. The net margin grew 8.6% in relation to Q2 2022, reaching 14.2%. Next slide. The company presented an adjusted EBITDA of BRL 94.5 million in Q2, an increase of 128% in relation to last year, with a margin of 19.5%. Slide 18. On June 30, 2023, the gross debt BRL 550 million . Considering cash and equivalent cash of BRL 325 million, net debt BRL 265 million .
The company reaffirms its intention to reduce the net debt over equity to below 20% in the next quarters. Currently, this relationship is at 41.9%, 5.3 percentage points below the 47% on December 31, 2022. The company had operational cash generation of BRL 34 million in Q2 2023. The positive variation of the cash came from the speed of sales and also from payments from Caixa Econômica Federal. We are available now for questions.
Thank you. Ladies and gentlemen, we would like to begin the Q&A session. To ask a question, please dial asterisk one. If your question is answered, you can leave the queue pressing asterisk two. Please wait while we collect the questions. The first question comes from Rafael Rehder, Safra Bank.
Good afternoon, João. Thank you for the questions. I'd like to know about the competition after the new government project. How do you see the search for plots of land? Do you continue buying plots of land in exchange for units? And also prices. There is a strong affordability now. So I'd like to know how this affects gross margin in the next quarters. Do you see the margin continuing to go up? Thank you.
Hello, Rafael. Good afternoon. Thank you for the questions. Concerning competition, it's cyclic. Before the pandemic, competition was very strong. The pandemic hurt the small and medium construction companies and brought difficulties because price was not in line with customers' pockets. Now, with the adjustments, we see more interest on the part of companies in this segment. So it's cyclic. There is great demand. Social interest housing has its characteristics. We know the companies that perform well in this segment. Competition will increase, but as I said, there is a great demand.
We know very well this market, so we're not concerned. Competition is part of life. Concerning plots of land for construction, we have more than BRL 3 billion in plots of land already bought in July. We had a very good month in acquisitions, more than BRL 14 billion in land bank. We know the region very well, all the regions in the city. There is a great demand, great offer of land.
We don't see any type of increase that could hurt our ability to buy plots of land. Our objective has already been reached in July. We still have four months, five months, and we should have a very positive year in terms of acquisition of plots of land. That's the price. We try, if the consumer can pay, we try to increase the prices. In the last year, our price increase was considerable.
Our margins are adequate and aligned with what we want. We're always looking. If the consumer can pay, we will maximize our results and increase prices. Of course, the new parameters of the government housing program improve the credit of our clients, so there is space to make the company healthy and consistent in relation to its operations.
Very clear. Thank you. Congratulations.
Thank you. The next question comes from Gustavo Cambauva, BTG Pactual.
Hello, good afternoon. I'd like to ask a little about medium. You have been investing in the land bank to be able to grow, buy more plots of land, medium income. I'd like to ask about medium income. The funding is even better. My question, thinking of growth in the future, now it's more difficult to segment what is medium income and low income.
What will this help in potential VGV when you think of next year? For example, the increase in the volume of launches, how much do you expect in terms of increase in VGV next year with a more favorable situation from the government's housing program? The second question is in relation to the new program, Pode Entrar. How do you imagine, do you have an idea of timing for the signing the projects with the government and then beginning the projects? I know it depends on the city hall. They have to accept. Do you believe it'll take two months or until the end of the year? When do you believe you will begin the construction of this new Pode Entrar program?
Good afternoon. Thank you for the question. Concerning middle class, these definitions, for example, what is the limit of middle class? In our concept, everything that was above the parameters of the government's previous housing program was middle class. We had a considerable volume called Grupo 4. Now, with these adjustments in the government housing program, most of our land bank that was called middle class, and for us continues to be middle class, but it fits into the parameters of the low income group.
This improves the conditions for credit from the government and affordability. We continue with our efforts. We raised our products to capture this income level until BRL 500,000. In São Paulo, there is a great demand, and we were working well in this area. We continue with the same strategy. Apartment units until BRL 400,000, BRL 500,000. We continue calling this middle class, but most of these consumers will be able to buy with the parameters of the government housing program.
They will be able to pay. Now, concerning the new program, Pode Entrar, we have submitted the documents to the city hall. Many of our projects are there. The city hall are looking at the procedures, the red tape, internal red tape. We believe that in August, probably, we will be able to begin the first construction projects. João, would you like to supplement this in relation to middle class?
Good afternoon, Gustavo Cambauva. This is an interesting data. The inventory we had for sale in June 30. We had 68% to be financed in the government's housing program. This now went to 98%. The income level is the same, but they can finance this with the government housing program. The inventory, almost 100%, can be financed in the government's housing program now with the changes they made. We can now have more people to buy and create more demand for our units.
Thank you.
The next question comes from Bruno Mendonça, Bradesco BBI.
Good afternoon. Thank you for the call. A question on your vision for the market with the new rules. We have seen in the last quarters of Plano & Plano, an increase in VSO with gains in margin, margins above 40% in the last quarters. When you look at the market, the projects in the pipeline within the new rules, where will you focus more? Will you raise the margin or accelerate cash generation? Could you talk about this? Linking this with your earnings report, we have seen also a good profit generation. How is your schedule for dividends? What is the outlook for dividends? Can you accelerate dividends?
Hi, Bruno. This is João. Beginning with the effect of the new rules. Clearly, the new rules increase the probability of our inventory being within the rules of the government housing plan. This is favorable. Since we have a pipeline of launches, what we should see is a greater increase in VSO and margin. We try to maximize both. Looking at the margin we have in the market, we believe it is better to have an increase in VSO in Q3 with good results in terms of VSO.
We believe we should have more results in VSO than in margin from now on. We see our pipeline in the second semester. We had said in previous calls that in the second semester, we would sell more. Now with the higher values, we believe we will continue selling well. Our pipeline is solid. We believe VSO will rise and margin will have less acceleration.
We are trying to have net debt over PL of 0.2, cash generation BRL 34 million. Depending on what happens in the second semester and beginning of next year, we may begin to increase the payout ratio next year. Right now, we have volatility. We want to work in a safe way. When cash is more robust, when we have excess cash, we will make a better use of it, depending on the performance and cash generation in the next few months. Thank you, Bruno.
Thank you.
Thank you. The next question comes from André Dibe, Itaú BBA.
Good afternoon, Luna, Hopp. Thank you. Two questions. The first, João mentioned, you talked about VSO. This strong trend, will it continue in the second semester? A follow-up, talking about inventory. You had 68%, now 98% is within the rules of the government housing plan. How was your land bank before? How is it now?
André, Luna. The trend and what has happened in this quarter, sales are very robust. Sales are very good. I can tell you that now we have been working with a volume of 35% of our units with longer financing and better affordability. We believe that by the end of the year, we will have also new conditions. Good expectations. Q3 began very strong. Apart from these adjustments in the government housing program, our capacity and quality of our products is very good. Concerning inventory, the percentage, I have data. on June 30, our land bank was worth BRL 13.2 billion, most 90% in the low income range. 89% is low income, 11% above low income.
The next question comes from Antonio Castrucci from Santander.
Good afternoon. Thank you. The first question on the new program, Pode Entrar, how are the discussions for the escrow program, and what is your strategy if you don't have a guarantee for the projects from the city hall? Also, the FGTS, do you believe it's sustainable to repeat the budget you have this year for next year?
Hello, Antonio. As I said, the city hall is working on the final details to approve the Pode Entrar projects. For the time being, all the issues are okay, so we're following what is determined. If something changes, we will evaluate and position ourselves in case we have changes that may affect us. For the time being, everything is going well. In relation to the FGTS, it's a finite amount of money. We had an increase recently. When the government continues to foster the production of units for social units, it will continue.
We know the program is important for the consumers and for the government. We are okay in expanding the funding for housing if the government continues to give incentives. Historically, we know that mobility and infrastructure are also important, and the government is calculating the priorities, and this program is one of the priorities of the government.
Thank you. Very clear. Congratulations.
Fine. Thank you.
Thank you. Our next question comes from webcast. Gustavo Spinelli. "I would like to know the plan to improve the liquidity of the shares. We know some companies that would like to buy the shares but want more liquidity." Thank you.
To improve the liquidity of the shares depends on external factors that we control less. First, the company has to become a larger company. The company has to grow more, and as the company grows, the purchase of sales increases and the liquidity improves. We see data from the beginning of the year, 2 million, and now close to 10 million. This growth increases our ADTV, and this is good for shares. Any company can think of follow on. It's a possibility, and any information or decision will be communicated to the market. Thank you.
Thank you. Our next question is also from the webcast. Ivan Di Pietro from Joule Asset Management. "Good afternoon. With the sales performance and good profitability and the increase in inventory, how much can you accelerate the launches?" Thank you.
In reality, our growth also depends on the quality of our delivery. It depends on the market. We will grow because the market has a good demand. We want our company to grow in a consistent way, in a stable and secure way, delivering good profitability. Our growth depends on the quality of our delivery and the quality of our results. Victor, internally, we have in our long term plan, we're looking at 2028. We want this sustainable growth, and we have a plan to get to this in the medium and long term.
Thank you. Ladies and gentlemen, reminding you to ask a question, please press asterisk one. We'd like to conclude the Q&A session. Now I would like to pass the floor to Mr. Rodrigo Luna, Director Vice-President, for his final comments.
Once again, I thank you all for participating in our conference call. We had a first semester that was very intense, excellent results. This new government now is already six months old. It seems that things are calming down. We see a drop in interest in the second semester. This will really improve the economy of the country and together with the government's efforts to improve the capacity of families to buy their homes, and bearing in mind our presence and our results already delivered in the first semester, we're very optimistic, trusting that the second semester will come with good results and good numbers for Plano & Plano. Once again, we thank you all for participating, and we wish you a good weekend.