MRV Rallies as Quarterly Sales Exceed Estimates: Sao Paulo Mover
MRV Engenharia & Participacoes SA, Brazil’s second-biggest homebuilder by market value, rose after quarterly sales beat forecast as competition diminished.
Sales jumped 34 percent to 1.1 billion reais ($547 million) in the first quarter of 2013 from the same period in 2012, according to a regulatory filing disclosing its preliminary results after the close of trading yesterday. That compares with the average estimate of 1.04 billion reais among three analysts surveyed by Bloomberg.
The increase is the result of reduced competition in the low-income market and better strategies to sell homes, Leonardo Correa, MRV’s chief financial officer, said in an interview in Sao Paulo. Rivals PDG Realty (PDGR3) SA and Rossi Residencial SA (RSID3) said at the beginning of the month that they are switching their focus to more expensive projects.
“Those first-quarter numbers show that our strategy to focus on the low-income market is correct,” Correa said.
About 90 percent of MRV’s houses and apartments are sold through a federal government financing program called “My House, My Life,” which targets families with monthly income of as much as 5,000 reais.
To reach those consumers, MRV is expanding its own sales team and advertising on the Internet as well, Correa said.
MRV has declined 25 percent this year while the Bovespa fell 12 percent.
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