Incorporadora Eztec focuses on luxury launchings in SP
Valor Econômico
The speech of several companies of the real estate sector moves towards the same direction: focus on the low-income and geographic expansion. Eztec, a midsize company, goes towards the opposite direction: it chose the State of São Paulo for its launchings - the capital will concentrate 75% of the launchings - and it will focus on the middle class segment (of real estate up to R$ 500 thousand/US$ 278 thousand). However, it will not abandon the high standard constructions.
With such formula that deviates from the standards of the sector, the company has presented results above the market average. Last year, it had net profit of R$ 163 million (US$ 82.7 million), a 59.5% high over the previous year. The net margin remained at 32.2% for an average of 14% of the open corporations in the third quarter of 2009 (only comparison available, since most have not disclose their balance sheets yet). The net earnings got to R$ 506 million (US$ 256.9 million), 51.5% more than in 2008.
It is the first time the company discloses the projection of results for 2010. It intends to reach a minimum level of 40% for the gross margin, and 30% for the net margin. A bold goal considering a gross margin of 40.4% this year. "Our differential lay in the lean structure for our productive capacity", says Emilio Fugazza, Financial and Investor Relations Officer of Eztec, as he explains the decision on staying focused on the São Paulo market and the middle and high classes. "Increasing the administrative structure without a profitability return is worthless", he adds.
During the crisis, Eztec prioritized small-sized commercial suite launchings - a market that is more saturated today. It is no coincidence that it primarily resumes the residential buildings this year. In 2009, the commercial properties represented 58% of the sales and this year they should get to no more than 15%.