Good afternoon, ladies and gentlemen. Welcome to the conference call for earnings for Q1 2022 for Plano & Plano. This event is being recorded and the participants will be in the listen mode only. Next, we will have a question-and-answer session when further instructions will be supplied. If any participant needs assistance during the conference call, please request the help of an assistant at dialing star zero. This event is also being transmitted simultaneously via webcast and can be accessed at ri.planoeplano.com.br/webcast. The slides of the presentation will be available for download on the webcast platform. The information is available in BRL and GAAP and IFRS for real estate developers in Brazil. Otherwise, we will indicate.
Before beginning, we would like to mention that any declarations made during the conference call concerning business perspectives of Plano & Plano projections, operational goals are based on beliefs and assumptions of the company's board, as well as on information currently available. Considerations about the future are not guarantees of performance. They involve risks, uncertainties, because they refer to future events, therefore, they 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 lead to results that may differ materially from those expressed here. Today, we have the presence of Mr. Rodrigo Luna and João Hopp, respectively, directors, vice president and Chief Financial Officer and investor relations. Now I would like to pass the floor to Mr. Rodrigo Luna, vice president, who will begin the presentation. Sir, you may proceed.
Good afternoon to all. Thank you very much for participating in the conference call of Plano & Plano. Please, let's begin on slide number five. Today, we will present the financial results of Q1 2022. The company established a new historical record of net sales reaching BRL 372 million , 11% above the same period in the previous year and 22% above net sales of Q4 2021. We sold 1,940 units during the first quarter. Plano & Plano is maintaining its program for launches during this year 2022. The launches are BRL 268 million , represented BRL 268 million until March 2022, 161% above the numbers of Q1 2021. The net revenue reached BRL 316 million in this quarter. The VSO, sales over supply, was 41%, 2 percentage points above the one we had at the end of March last year.
We continue to work with a model that is very light in assets. We continue to buy plots of land with small commitment of cash. The company's ROI in the last 12 months was 35%, a return rate that is notable or remarkable in the sector. This quarter also had the persistence of pressure on construction costs. A lot of work was done to mitigate the impact of these price increases in the projects. We had an evolution in construction processes, gains in productivity, a new structure for marketing and sale expenses, and gradual price increase due to inflation in the prices of sale are some of the actions that we took to overcome the current situation. The company maintains the strategy to expand its participation in middle-class projects above low income Casa Verde e Amarela, low-income projects.
We are working so that in 1.5 years , we will have 35% of our launches above the low-income housing. in March 2022, the price of the square meter sold has already gone up 3.18% if compared to the price of December 2021. In the same period, inflation INCC had a variance of 1.97%, and construction inflation of Plano & Plano grew only 0.95%. In spite of the challenging scenario with persistent inflation increase in interest rates and worldwide economic challenges, the management trusts that we will reach the growth projected for 2022 and an improvement in profitability, maintaining the risks in a controlled way. Now I'd like to pass the floor to Mr. João Hopp, our Chief Financial Officer, who will present the operational highlights and financial highlights. João, you have the floor.
Good afternoon. Thank you for your presence in our conference call. Let's go on to slide number seven. Net sales, 100% Plano & Plano in Q1 2022, represented 372 million BRL, 10.8% higher than the BRL 335 million that we had in the first quarter of 2021, 22% higher than the BRL 305 million in Q4 2021. This result establishes a new record of quarterly sales for Plano & Plano. Slide eight. The company launched three new projects, three new buildings worth BRL 268 million , representing a growth of 161% in relation to the BRL 103 million launched in Q1 last year. The company's participation in launches in the quarter was 100%. Next slide, number nine. On March 31st, 2022, the VSO of the last 12 months was 41.2%.
In comparison with the same period in 2021, there was an increase of 2.4 percentage points in VSO in relation to 38.8% of March 31st, 2021, showing a good sales performance and also growth in sales in comparison with the growth in inventory. In comparison with December 31st, 2021, there was an improvement in VSO two percentage points. Slide 11, please. The net revenue of the company represented BRL 316 million in Q1 2022, 6% higher than BRL 298 million that we had in Q4 2021, and 1.2% higher than BRL 312 million obtained in Q1 2021. The revenue has remained solid following the evolution of the projects and the sale of our inventory and launches, and we are using the methodology of percentage of completion, POC. Next slide. The gross adjusted profit of capitalized interest in the quarter reached BRL 93.4 million, and the growth adjusted margin was 29.6%.
The main factor that puts pressure on margin is the increase in price of raw materials in all the real estate segment, a consequence of the rupture in the supply of several materials and a boom in construction in Brazil. The company is gradually increasing its prices with the acceleration of inflation, so it is unfeasible to increase prices immediately. So we have to balance things between acceleration of sales and price. Next slide, 13. Even with a growth of 22% in sales between Q4 2021 and Q1 2022, the sales expenses maintain themselves close with an increase of 3.4%. Administrative expenses represented a drop of 2.7% in Q4 2021 in relation to Q2 2022, showing a better operational efficiency. The growth of sales expenses and administrative expenses in Q1 2022 compared to Q4 2021 are lower than the growth of the net revenue.
The sales expenses went from 10.9% of net revenue in Q4 2021 to 10.6% in Q1 2022, while administrative expenses went from 7.3% of the net revenue in Q4 2021 to 6.7% in Q1 2022. Next slide. The net profit reached BRL 22 million in the first quarter of 2022. The drop in relation to the same period in the previous year is explained by the impact of inflation on cost and also higher administrative costs. The company has been increasing the price of the units, trying to recover the gross margin and also the net margin. Next slide. The company presented an adjusted EBITDA of capitalized interest, BRL 40.5 million in Q1 2022, with a margin of 12.8%. Next slide 16. On March 31st, 2022, the gross debt represented BRL 413 million.
Considering cash and equivalent cash of BRL 277 million, the net debt reached BRL 136 million at the end of the quarter. Slide 17. Excluding the effect of payment of dividends and buying back shares, the company's operation had a cash consumption of BRL 13.4 million in Q1. The variance in cash is due to the amount invested in real estate, in land, and due to a good performance of our projects. We are available for questions, and we are available for any clarification that may be necessary.
Ladies and gentlemen, we would like to begin the question-and-answer session. To ask a question, please dial asterisk one. If your question is asked, you may leave the queue dialing asterisk two. Our first question comes from Gustavo Cambauva, BTG Pactual.
Good afternoon. I would like to ask a question concerning competition. How do you see competition in the market in São Paulo? We know that the low-income housing project is getting smaller and smaller. In São Paulo, do you have less competition, and how can this help the company to grow its VGV price? How do you see this? The second question, also in this line, another point, with the recent increase in costs, we have seen some companies selling plots of land. I would like to understand what you have seen. Do you see more opportunities in plots of land, and how is the situation for the purchase of land in São Paulo?
Good afternoon. Thank you for the question. Well, yes, there is pressure in the market, so it is getting more difficult to have new projects than in the past, and that puts pressure on the players. In these more difficult times, small and medium-sized companies are having more difficulty to operate in comparison with large company due to their capacity to invest, use of technology, due to the size of their sales force, due to their knowledge of the market. All of this puts more pressure, causes more difficulties for small and medium-sized companies.
We know that this market is very pulverized. At least half of the market in São Paulo is made up of small and medium-sized construction companies. So we begin to notice less competition from these companies, less competition from small, medium-sized companies. Of course, the companies that already launched their products, they are in the market, and they will fight for the clients. New launches, we notice only more structured and larger companies launching new projects. Concerning the plots of land, our land bank, some plots of land needed some remodeling.
We had to talk to the owners and renegotiate. We were successful. There was one plot of land that we gave up because we were not successful in renegotiating the price with the owner. We maintained well our portfolio in the new scenario, and we continue to buy. Right now, yes, there is a great opportunity because less companies are now willing to launch new projects. The situation is more difficult, and then our geographic presence, which is very strong in São Paulo, north, south, east, west, I always say this, and this obviously brings us good opportunities due to our presence and the knowledge we have in the market. I hope I answered your question.
Yes, you answered, Rodrigo. Thank you.
Good afternoon. Our next question comes from Bento XP Investimentos . Good afternoon, Rodrigo, João. Thank you for the presentation. I have some questions.
How is the product mix for the next launches, and what is the trend for gross margin? The second question is on price increases. Are you being able to increase prices? Thank you.
Hello. João, thank you. I will answer here concerning the mix. As we always say, every day we work to understand the consumer, what the consumer wants, and what has liquidity. The products that were approved, they have their mix well established. When we are sure that the product has a good acceptance in the market, we launch. The new products, those that are in production, they are reevaluated all the time. Obviously, we look at each region. I would tell you that the trend right now is to adjust these products for the current scenario concerning income and buying power of the consumers.
Obviously, this brings, as a consequence, adjustments that are made. This is part of the company strategy, to make adjustments. Concerning margin VSO, João will answer.
Thank you. Good afternoon. The gross margin, which is a recurring issue, I would say it's the main concern of the company for 2022, and we have many actions to mitigate the inflation we have. Our expectation is that the pressure on gross margin is almost over. We have projected for 2022 a drop and improvement in prices, and the most recent sales have better margins than the ones we had a year ago, six months ago. We are always gradually increasing the price. Our expectation is a reversal, an increase in gross margin during this year. This dichotomy, prices and speed of sales is art. This is what we do all the time.
Every week we evaluate products, and what we have been able to do this year is to increase VSO and increase price. We said in the opening that since December, the price of the square meter grew 3.18%. This is important, the price of the square meter. When we compare this, our cost of construction, in 2022, we're being able to recover margin. All of this without losing speed of sales and VSO. It's not easy. It involves a lot of work, strategic work, tactical work. In the past, we grew 52% in sales. This year, we will have a sales growth above what we're launched. We want a healthy situation for 2022. Thank you.
Our next question comes from the webcast platform. André Dibe.
Hello. Do you believe the Q1 2022 is the floor for gross margin? Is there space to increase prices? Do you believe you will increase prices?
André, thank you. In part, we answered this in the previous question. The pressure on gross margin, we believe three months ago we were more optimistic, but we see that inflation continues in Brazil, persists in Brazil and in construction, so we cannot tell you that we reached the bottom. We believe that this year things will change. We are being cautious. As I said, we want to increase VSO and increase prices. We have our price per sq m increasing 3.18% this year. There is space, yes. It is a case by case, project by project, looking at the dynamics. For example, whether we have a lot of competition or whether we do not have competition, and then we increase prices. It is continuous work. We work on this every week in order to improve.
The focus of the company is improving revenue and profit this year, 2022.
Our next question is from the webcast, Mr. José Augusto. How many months will it take to increase prices according to inflation? Are we at the peak of inflation in Brazil?
Good afternoon. João again. I will answer using data that we use. Considering August 2020 as the beginning of price increases for construction materials, since then, we had an acceleration of inflation and price increases. Right now, at the end of Q1, our price recovery is 1.1% behind inflation. In 2021, the difference was larger. That is why the loss in margin was greater. We have increased prices above inflation, and now the difference is 1.1%. In May, June, we hope to sell the units with the same margins we had in 2021 before the price increases, before inflation. In the next few months, we intend to recover all of inflation. Thank you.
The next question is from Luis Kotaka.
Good afternoon. Could you comment the delinquency? How is delinquency?
Luis, thank you. We have today in the whole portfolio, VGV, we have BRL 19 million in our portfolio in Pro soluto. Our delinquency levels are very low. We have 3.85% delays in excess of 30 days. Our portfolio, 1/3 of the BRL 19 million will be owed before we deliver the keys and the remaining part after we deliver the keys of the units.
Ladies and gentlemen, reminding you that to ask a question, please dial asterisk one. Since there are no more questions, we would like to conclude the question-and-answer session. Now I would like to pass the floor to Mr. Rodrigo Luna, vice president, for his final comments.
Once again, good afternoon. Thank you for participating in our conference call. As a final message, we are alert to the current situation the world is going through, inflation. We have our main objective this year to maintain our projections with significant gains in margin in relation to what happened in the last quarters. We are doing this in a very consistent way. We have seen in the market greater possibility to accept higher prices. Due to this, we are optimistic, even with difficulties in the year, we will have a performance according to the plans made last year. Once again, thank you for participating, and we will meet again in the next quarter. Thank you.
The conference call for results of Plano & Plano is concluded. We thank you all