RNS Number : 2247E
Etalon Group PLC
26 October 2022
 

26 October 2022

 

Etalon Group Announces 3Q and 9M 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 three months and nine months ended 30 September 2022, based on management accounts.

9M 2022 Operating Highlights

 

·    New contract sales amounted to 210.5 ths sqm and RUB 42.6 bln

·    Cash collections were at RUB 43.8 billion

·    The number of contracts amounted to 4.7 thousand

·    Average price per sqm grew by 8% year-on-year to RUB 202.6 thousand

·    Average price per sqm of apartments in 9M 2022 was RUB 276.9 thousand, up by 20% year-on-year

9M 2022 operating results

 

9M 2022

9M 2021

Change, %

New sales, sqm

210,461

317,410

(34%)

New sales, mln RUB

42,648

59,537

(28%)

Number of contracts

4,687

6,155

(24%)

Cash collections, mln RUB

43,807

60,197

(27%)

Average price, RUB/sqm

202,641

187,572

8%

Average price (apartments), RUB/sqm

276,864

230,507

20%

Deliveries, sqm

325,969

184,099

77%

 

Regional breakdown

 

9M 2022

9M 2021

Change, %

Moscow metropolitan area

New sales, sqm

92,878

180,562

(49%)

New sales, mln RUB

24,613

39,184

(37%)

Number of contracts

2,027

3,508

(42%)

Cash collections, mln RUB

23,814

38,317

(38%)

Average price, RUB/sqm

265,004

217,013

22%

Average price (apartments), RUB/sqm

349,523

259,279

35%

St Petersburg

New sales, sqm

95,085

136,848

(31%)

New sales, mln RUB

15,905

20,353

(22%)

Number of contracts

2,076

2,647

(22%)

Cash collections, mln RUB

18,284

21,879

(16%)

Average price, RUB/sqm

167,270

148,728

12%

Average price (apartments), RUB/sqm

247,280

189,866

30%

Other regions

 

 

 

New sales, sqm

22,498

-


New sales, mln RUB

2,130

-


Number of contracts

584

-


Cash collections, mln RUB

1,709

-


Average price, RUB/sqm

94,686

-


Average price (apartments), RUB/sqm

113,472

-


 

3Q 2022 Operating Highlights

·    New contract sales amounted to 67.0 ths sqm and RUB 13.3 billion

·    The number of contracts amounted to 1.6 thousand

·    Cash collections totalled RUB 11.2 billion

·    Average price per sqm reached RUB 199.0 thousand, up by 4% year-on-year

·    Average price per sqm of apartments grew by 2% year-on-year to RUB 250.3 thousand

 

3Q 2022 operating results

 

 

3Q 2022

3Q 2021

Change, %

New sales, sqm

66,986

96,470

(31%)

New sales, mln RUB

13,329

18,390

(28%)

Number of contracts

1,572

1,869

(16%)

Cash collections, mln RUB

11,170

19,308

(42%)

Average price, RUB/sqm

198,985

190,633

4%

Average price (apartments), RUB/sqm

250,326

244,928

2%

Deliveries, sqm

91,295

181,071

(50%)

 

Regional breakdown

 

3Q 2022

3Q 2021

Change, %

Moscow metropolitan area

New sales, sqm

25,228

49,445

(49%)

New sales, mln RUB

7,100

11,303

(37%)

Number of contracts

565

999

(43%)

Cash collections, mln RUB

5,405

11,832

(54%)

Average price, RUB/sqm

281,433

228,589

23%

Average price (apartments), RUB/sqm

351,744

283,070

24%

St Petersburg

New sales, sqm

23,769

47,026

(49%)

New sales, mln RUB

4,482

7,088

(37%)

Number of contracts

541

870

(38%)

Cash collections, mln RUB

4,354

7,475

(42%)

Average price, RUB/sqm

188,567

150,724

25%

Average price (apartments), RUB/sqm

258,167

201,686

28%

Other regions

New sales, sqm

17,989

-


New sales, mln RUB

1,747

-


Number of contracts

466

-


Cash collections, mln RUB

1,410

-


Average price, RUB/sqm

97,128

-


Average price (apartments), RUB/sqm

114,362

-


Monthly sales dynamics in 3Q 2022

 

 

July 2022

August 2022

September 2022

New sales, sqm

17,066

26,335

23,585

New sales, mln RUB

3,189

5,219

4,922

Cash collections, mln RUB

2,968

4,058

4,144

 

Quarterly operating performance

 

3Q 2022

2Q 2022

1Q 2022

4Q 2021

3Q 2021

New sales, sqm

66,986

53,036

90,439

129,070

96,470

New sales, mln RUB

13,329

9,638

19,681

24,851

18,390

Number of contracts

1,572

1,216

1,899

2,405

1,869

Cash collections, mln RUB

11,170

11,402

21,235

23,897

19,308

Average price, RUB/sqm

198,985

181,732

217,611

192,538

190,633

Average price (apartments), RUB/sqm

250,326

294,096

290,140

261,121

244,928

Deliveries, sqm

91,295

58,981

175,693

237,110

181,071

 

Mortgage contract developments

 

 

3Q 2022

2Q 2022

1Q 2022

4Q 2021

3Q 2021

Share of mortgages (total)

37%

25%

33%

40%

39%

Share of mortgages (apartments)

55%

55%

61%

70%

66%

 

Commenting on the 3Q and 9M 2022 operating results, Etalon Group CEO Gennadiy Shcherbina said:

 

"In the first nine months of 2022, Etalon Group sold 210.5 ths sqm for a total of RUB 42.6 billion. Despite the difficult external environment, which led to a sharp increase in the key rate in the first half of the year and a decrease in purchases in late September, we saw a gradual recovery in sales in the last quarter. New contracts sales increased from RUB 3.2 billion in July to RUB 4.9 billion in September. Cash collections have increased month-on-month since June.

 

"One of the factors supporting sales in the third quarter was the expansion of Etalon Group's real estate supply. From January to September, we put about 530 ths sqm on sale at our projects in Moscow, St Petersburg and other regions. A large percentage of new sales launches took place in the second and third quarters, thus supporting a gradual recovery of sales from July. At the same time, regional projects accounted for a considerable share of our sales: in 3Q 2022, 27% of our sales volume came from our regional portfolio. Notably, the Green River project, launched in April of this year, accounted for 8% of the total sales volumes for the period from July to September. Projects from our YIT portfolio accounted for nearly 25% of quarterly sales in our traditional and regional markets.

 

"Taking into account the new environment and the slowdown in demand in late September, we adjusted our launch plan for the 12 months of 2022 to 686 ths sqm. Nonetheless, our flexible business model, stable low-leverage financial position and our current land bank enable us to increase the volume of new supply in the wake of market stabilisation and a recovery in demand.

 

"In the current environment, our priority is to make our product more affordable, which will enable us to maintain good sales dynamics and expand our presence in regional markets. To improve cost-effectiveness, we are incorporating our own developments and integrating the digital know-how we obtained through the acquisition of YIT Russia. Notably, we continue to work on creating an end-to-end digital architecture for our business; we are taking an automated approach to project design and standardisation, and we are developing state-of-the-art industrial technologies for housing construction. We are now working hard on the development of prefabrication technology and testing individual prefabricated elements in a number of our projects, and we are going to scale up this technology to achieve a leading position in terms of cost-effectiveness."

 

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, Ekaterinburg, Tyumen and Kazan. 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 million 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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