Cyrela will discuss the possibility of paying extraordinary dividends to shareholders in the second semester, despite the larger cash consumption in the first six months of the year, the company’s chief financial officer Miguel Mickelberg said in results teleconference on Friday (15).
When asked if the larger cash burning and the larger land purchases by the company could translate into a minor dividend this year – and it would make sense to consider a minimum payout for the period – Mickelberg said Cyrela will evaluate the possibility of additional payment.
“We will discuss at the end of the year the possibility of an extraordinary dividend,” Mickelberg said in a teleconference with analysts, presenting the construction company’s quarterly results, released on the eve of the day before.
“Cash performance in this (second) quarter and this slightly more structural question of cash conversion will not change our position ever to optimize capital structure and evaluate dividends.”
The company presented a cash consumption of $ 392 million between April and late June, compared to the burning of $ 61 million in the same period last year, according to balance.
According to the executive, this consumption was driven mainly by a higher disbursement with the purchase of land, which totaled R $ 480 million in the period, double the quarterly average, which is around R $ 240 million.
“It is worth mentioning that there are some land we disburse in the quarter that will have partners, and we will have a refund happening in the coming months. So there is a reversal of about $ 100 million,” added the executive.
In accumulated from the year until June, Cyrela totaled a cash consumption of $ 320 million, facing the generation of $ 69 million in the first six months of 2024.
Despite the prospect of “some reversal” of this consumption in the second half, Mickelberg said that the company’s cash position at the end of the year should fall short of expected, citing a change in VSO (sales speed) between newer inventory units and ready and ready-made stocks.
“Although we had kept a healthy VSO … even slightly above the goal and in line with what we did last year, the composition changed a little,” he explained.
“We are having a higher stock sales speed in the younger inventory, in stock, and a much lower sales speed in ready-made stock and in the semi-ready stock, which is what it delivers in the year. The conversion of this cashier sales is being smaller than we projected.”
With this, the chief financial officer estimated that the construction company and developer should end 2025 with a cash position in the negative field or close to neutrality.
“It’s still hard to say, there’s still a lot of uncertainty, but it will fall short of what we thought at the end of last year and early this year,” he said.
At about 13h, Cyrela shares rose 1.55%, at R $ 25.58 each, while the Brazilian Scholarship Reference Index, Ibovespa, retreated 0.21%.
