The following is a summary of the Gafisa S.A. (GFASY) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Gafisa reported a year-on-year reduction in expenses by 12% for 2023, showing efficiency in cost management.

• Gross inventory sales showed positive momentum with a 21% increase year-on-year, reaching R$970 million.

• Despite not launching any new projects, the company reported net revenue of R$1.1 billion.

• The company closed the year with adjusted net profit for Q4 being R$48 million.

• The total revenue saw a 14% drop year-on-year due to the decision of not launching new projects in 2023.

• High interest rates and cost inflation led to accrued net loss over the year.

Business Progress:

• Gafisa successfully focused on reducing their medium and high-income inventory and completing construction plans in 2023.

• The company strategically divested from non-aligned projects in 2023.

• Cancellation rates dropped significantly in 2023 with 20% of total cancellations being reversed through upgrading current or other projects.

• The company plans to maintain its high-end segment position and diversify its sales model for revenue growth in 2024.

• Further expense reduction and leverage reduction are key focus areas for Gafisa in 2024.

• Changes in São Paulo's strategic Master Plan and land use law have positively affected the company, boosting its property bank's construction potentials.

• Gafisa demonstrated commitment towards ESG initiatives which was recognized through several awards and certifications in 2023.

More details: Gafisa SA Sponsored ADR IR

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