Gross margin
Gross Revenue
Cyrela closed 2010 with total gross revenue of R$ 5.0 billion, meaning a 19.4% increase over the gross revenue from 2009. The middle, mid-high and high-end properties are still among the most representative in the Company’s portfolio. In 2010, these segments contributed with 74.3% of the total recognized revenue, below the 79.3% registered in the previous year.
The development revenue, which represents 97.9% of the total, reached R$ 4.9 billion, 18.5% higher than the R$ 4.1 billion from the previous year. In the last quarter of 2010, the revenue was impacted by the concentration of launches in it.
Another important factor was the physical/financial revision of budgets of construction costs to incur, which caused an increase on the budgeted cost of R$ 367.2 million, and subsequently a reduction in the recognized revenue, reaching R$ 237.9 million in the quarter (the increased cost by the POC system results in a reduced percentage of completion of construction, and subsequently reduces the recognized revenue).
The revenue of lots in 2010 reached R$ 65.4 million, or 1.3% of the total gross revenue. Regarding services rendered, revenues amounted to R$ 77 million, corresponding to 1.5% of the Company’s gross revenue.
|
Gross revenue |
2010 (R$ thousand) |
Share (%) |
2009 (R$ thousand) |
Share (%) |
Variation (%) |
|
Residential real estate development |
4,911.1 |
97.2 |
4,144.2 |
97.9 |
18.5 |
|
Lots |
65.4 |
1.3 |
48.1 |
1.1 |
36.1 |
|
Services rendered |
77.0 |
1.5 |
41.7 |
1.0 |
84.8 |
|
Total |
5,053.6 |
100.0 |
4,234.0 |
100.0 |
19.4 |
Cost of goods/services provided
In 2010, the cost of residential real estate development had a 24.5% increase over 2009, reaching R$ 3,265.6 million, especially due to the started construction of new projects, which represented 18.6% of the total development cost in the year.
The detailed conciliation of budgets of financial costs to incur regarding the physical evolution of organic (own) in-house construction and construction carried out with partners and third parties. Along 2010, the increase of cost to incur was of R$ 533.6 million, motivated by the revision of budgets.
Gross Margin
The revision of construction costs to incur, which resulted in an increase of R$ 533.6 million in the budgeted cost thus affecting the recognition of gross revenue in R$ 320.1 million in the year, explain the 3.1% reduction in the gross margin of Cyrela in 2010, which was of 31.4%. With Living, the gross margin reached 28.2% in the same period.
|
Gross margin |
2010 |
2009 |
Variation (%) |
|
Residential real estate development |
31.3% |
34.5% |
- 3.2 p.p. |
|
Urban developments (lots) |
46.8% |
38.4% |
8.4 p.p. |
|
Services rendered |
23.5% |
27.0% |
- 3.5 p.p. |
|
Total |
31.4% |
34.5% |
- 3.1 p.p. |
