RNS Number : 5085J
Etalon Group PLC
27 April 2022
 

27 April 2022

 

Etalon Group Reports 1Q 2022 Operating Results

 

ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces its unaudited operating results for the first quarter ended 31 March 2022, based on management accounts.

 

1Q 2022 operating highlights

 

·    New contract sales amounted to 90.4 ths sqm

·    New contract sales in monetary terms rose by 21% year-on-year and totalled RUB 19.7 billion

·    The number of new contracts amounted to 1,899

·    Cash collections rose by 18% year-on-year to RUB 21.2 billion

·    The average price per sqm increased by 32% year-on-year to RUB 217.6 ths

·    The average price per sqm for residential real estate grew by 39% year-on-year to RUB 290.1 ths

 

1Q 2022 operating results

 

 

1Q 2021

1Q 2022

Change, %

New sales, sqm

98,670

90,439

(8%)

New sales, RUB mln

16,214

19,681

21%

Number of contracts

1,989

1,899

            (5%)

Cash collections, RUB mln

18,036

21,235

18%

Average price, RUB/sqm

164,329

217,611

32%

Average price (apartments), RUB/sqm

208,095

290,140

39%

Deliveries, sqm

3,028

175,693

58x

 

Regional breakdown

 


1Q 2021

1Q 2022

Change, %

Moscow metropolitan area

New sales, sqm

51,766

42,536

(18%)

New sales, RUB mln

9,451

11,793

25%

Number of contracts

1,030

824

(20%)

Cash collections, RUB mln

9,861

11,609

18%

Average price, RUB/sqm

182,565

277,236

52%

Average price (apartments), RUB/sqm

230,041

340,263

48%


 


 

St Petersburg

New sales, sqm

46,905

47,903

2%

New sales, RUB mln

6,764

7,888

17%

Number of contracts

959

1,075

12%

Cash collections, RUB mln

8,175

9,627

18%

Average price, RUB/sqm

144,203

164,666

14%

Average price (apartments), RUB/sqm

184,154

236,526

28%

 

Quarterly operating performance

 

 

1Q 2021

2Q 2021

3Q 2021

4Q 2021

1Q 2022

New sales, sqm

98,670

122,270

96,470

129,070

90,439

New sales, RUB mln

16,214

24,933

18,390

24,851

19,681

Number of contracts

1,989

2,297

1,869

2,405

1,899

Cash collections, RUB mln

18,036

22,853

19,308

23,897

21,235

Average price, RUB/sqm

164,329

203,915

190,633

192,538

217,611

Average price (apartments), RUB/sqm

208,095

236,342

244,928

261,121

290,140

 

Mortgage contract developments

 

 

1Q 2021

2Q 2021

3Q 2021

4Q 2021

1Q 2022

Share of mortgages (total)

37%

47%

39%

40%

33%

Share of mortgages (apartments)

63%

67%

66%

70%

61%

 

Commenting on the 1Q 2022 operating results, Etalon Group CEO Gennadiy Shcherbina said:

 

"The first three months of 2022 saw active demand for real estate, and Etalon Group, as one of the largest market players, delivered good results. Our key sales indicators in rouble terms grew at a double-digit pace. The value of real estate sold by the Company in the period from January to March this year increased by 21% year-on-year to RUB 19.7 billion. Cash collections reached RUB 21.2 billion, 18% higher than in 1Q 2021.

 

"Sales trends, in monetary terms, were driven by consistent growth in the average price per sqm, as well as the balance of locations and project classes in our real estate portfolio. Sales also continue to be supported by the state-backed mortgage programme - the share of mortgage sales in 1Q 2022 remained virtually unchanged year-on-year at 61%, despite the significant increase in the Bank of Russia's key rate at the end of February.

 

"I would also note that in the early part of the year we continued to actively expand our project portfolio in our key regions of operations and to enter new regional markets. In February we acquired projects in Moscow, St Petersburg, Ekaterinburg and Tyumen totalling 1.7 mln sqm. By expanding supply through the acquisition of new projects and M&A deals, we will increase the number of projects available to our customers this year already, which will give a further boost to our operating performance."

Conference call and webcast

 

A conference call for investors and analysts will be held in May 2022. During the call Etalon group management will present the operating results for 1Q 2022 as well as the financial results for FY 2021, and will provide an update on strategy implementation. The presentation will be followed by a Q&A session.

 

This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/ 

 

Contact Information

 

Etalon Group

IR Team

T: +44 (0) 20 8123 1328

E: ir@etalongroup.com

 

EM

E: etalon@em-comms.com 

 

About Etalon Group

Founded in 1987, Etalon Group is one of the largest development and construction companies in Russia. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. In 2021, the Company began a regional expansion programme and has already launched new projects in Omsk, the Novosibirsk region as well as Ekaterinburg and Tyumen. With a 35-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry. Since its foundation, Etalon Group has commissioned 7.9 mln sqm of real estate.

Thanks to its integrated business model, Etalon Group is able to create added value for customers and shareholders at every stage of development, from land plot analysis and acquisition to the operation and maintenance of existing properties. Etalon Group employs over 4,600 people, and its nationwide sales and marketing network covers 59 Russian cities.

Etalon Group's assets comprise 27 projects at the design and construction stages, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 6.0 mln sqm, as well as a construction and maintenance division. Colliers International valued the Company's total assets at RUB 270 billion as of 31 December 2021.

In 2021, Etalon Group's new contract sales totalled 446 ths sqm, or RUB 84.4 billion. The Company's revenue in 2021 amounted to RUB 87.1 billion, with EBITDA of RUB 17.9 billion.

Etalon Group's GDRs have traded on the Main Market of the London Stock Exchange since 20 April 2011 and in the Level 1 quotation list of Moscow Exchange since 31 January 2020 under the ticker ETLN.

 

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