RNS Number : 4840I
Etalon Group PLC
07 August 2023
 

7August 2023

 

Etalon Group Announces Twofold Increase in Sales in 2Q 2023 and Outstanding Results in July 2023

 

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 six months ended 30 June 2023, based on management accounts.

1H 2023 operating highlights:

 

·    New contract sales rose year-on-year by 28% to 184.3 ths sqm in terms of floor space and by 16% to RUB 34.0 billion in monetary terms

·    Cash collections amounted to RUB 28.2 billion

·    Owing to the increased share of regional projects in the sales portfolio, the average price per sqm was RUB 184.5 ths, a 10% decrease compared with 1H 2022

·    The average price per sqm of apartments amounted to RUB 221.9 ths

·    Deliveries amounted or 196 ths sqm

·    In July 2023, after the reporting period, new contract sales were 41.1 ths sqm (up 141% year-on-year) and RUB 8 billion (up 151% year-on-year); cash collections increased by 129% to RUB 6.8 billion

 

1H 2023 operating results:


1H 2022

1H 2023

Change, %

New contract sales, sqm

143,475

184,268

28%

Moscow and the Moscow region

47%

38%


St Petersburg

50%

29%


Other regions

3%

33%


New contract sales, RUB mln

29,319

34,002

16%

Moscow and the Moscow region

60%

51%


St Petersburg

39%

28%


Other regions

1%

21%


Number of contracts

3,115

3,820

23%

Moscow and the Moscow region

47%

37%


St Petersburg

49%

29%


Other regions

4%

34%


Cash collections, RUB mln

32,637

28,210

(14%)

Moscow and the Moscow region

56%

48%


St Petersburg

43%

29%


Other regions

1%

23%


Average price, RUB/sqm

204,348

184,528

(10%)

Average price (apartments), RUB/sqm

291,332

221,857

(24%)

 

January-July 2023 sales trends

 


Jan

Feb

Mar

Apr

May

Jun

Jul

New contract sales, sqm

18,589

21,855

33,189

39,389

32,959

38,288

41,149

Change, m-o-m


18%

52%

19%

(16%)

16%

7%

New contract sales, RUB mln

3,249

3,701

6,486

7,262

6,141

7,163

8,006

Change, m-o-m


14%

75%

12%

(15%)

17%

12%

Cash collections, RUB mln

4,133

3,275

4,593

5,216

5,768

5,232

6,797

Change, m-o-m


(21%)

40%

14%

11%

(9%)

30%

 

2Q 2023 operating highlights:

·    The Company concluded 2,265 new contracts with buyers

·    New contract sales increased year-on-year by 109% to 111 ths sqm and by 113% to RUB 20.6 billion

·    Cash collections rose by 42% year-on-year to RUB 16.2 billion

·    The average price per sqm was RUB 185.9 ths

·    The average price per sqm of apartments was RUB 223.4 ths

 

2Q 2023 operating results:

 


2Q 2022

2Q 2023

Change, %

New contract sales, sqm

53,036

110,635

109%

New contract sales, RUB mln

9,638

20,566

113%

Number of contracts

1,216

2,265

86%

Cash collections, RUB mln

11,402

16,209

42%

Average price, RUB/sqm

181,732

185,892

2%

Average price (apartments), RUB/sqm

294,096

223,389

(24%)

 

Regional breakdown


2Q 2022

2Q 2023

Change, %

Moscow and the Moscow region

New contract sales, sqm

25,114

40,980

63%

New contract sales, RUB mln

5,720

10,352

81%

Number of contracts

638

782

23%

Cash collections, RUB mln

6,800

7,857

16%

Average price, RUB/sqm

227,781

252,624

11%

Average price (apartments), RUB/sqm

369,908

326,397

(12%)

St Petersburg

New contract sales, sqm

23,413

34,151

46%

New contract sales, RUB mln

3,535

6,149

74%

Number of contracts

460

715

55%

Cash collections, RUB mln

4,303

4,853

13%

Average price, RUB/sqm

150,977

180,062

19%

Average price (apartments), RUB/sqm

261,111

246,034

(6%)

Other regions

New contract sales, sqm

4,509

35,504

687%

New contract sales, RUB mln

383

4,064

961%

Number of contracts

118

768

551%

Cash collections, RUB mln

299

3,498

1,070%

Average price, RUB/sqm

84,945

114,475

35%

Average price (apartments), RUB/sqm

109,448

118,816

9%

Quarterly operating performance


2Q 2022

3Q 2022

4Q 2022

 1Q 2023

2Q 2023

New contract sales, sqm

53,036

66,986

81,934

73,633

90,439

New contract sales, RUB mln

9,638

13,329

16,004

13,436

19,681

Number of contracts

1,216

1,572

1,770

1,555

1,899

Cash collections, RUB mln

11,402

11,170

16,579

12,001

21,235

Average price, RUB/sqm

181,732

198,985

195,324

185,478

217,611

Average price (apartments), RUB/sqm

294,096

250,326

229,297

261,121

290,140

 

Mortgage contract developments


2Q 2022

3Q 2022

4Q 2022

1Q 2023

2Q 2023

Share of mortgages (total)

25%

37%

58%

47%

50%

Share of mortgages (apartments)

55%

55%

79%

70%

71%

 

Commenting on the Company's operating results, Etalon Group CEO Gennadiy Shcherbina said:

"Our second-quarter results were strong, as expected. From April through June, we sold twice as much real estate as in the same period of 2022. 

"Our main internal sales driver was the expansion of our offer of affordable housing in regional markets. Since the launch of our regional expansion programme, we have put nearly 360 ths sqm on the market at our regional projects, increasing the share of regions beyond Moscow and St Petersburg in our sales portfolio to 33% as of the end of the first half of 2023.  

"The expansion of our line of more affordable and more popular products drove a return to double-digit growth rates and enabled us to scale up our business in line with our strategic goals to 2024. Notably, July has been our best month so far since 2022 for new contract sales, both in terms of floor space and in monetary terms - 41 ths sqm and RUB 8 billion, respectively.

"We plan to continue providing a sufficient supply in our traditional markets and to maintain a high rate of regional expansion. By the end of the year, we expect to put around an additional 150 ths sqm on sale in regions beyond Moscow and St Petersburg. We believe that expanding our presence in regional markets and the successful development of our product will help us ensure sustainable business growth in the future and strengthen our position as one of the leading nationwide developers in the country."

 

Ilya Kosolapov, Etalon Group's Chief Financial Officer, added:

"Despite our rapid expansion into regional markets and the active development of new projects, the Company continues to demonstrate strong financial performance. The ratio of net corporate debt to pre-PPA EBITDA at the end of June 2023 was 0.8x, down from 1.0x in April. This is a comfortable level for the Company and enables us to implement both our current construction projects and key strategic initiatives in terms of expanding into new regions and developing advanced technologies."

 

This and other 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 Russia's largest development and construction companies. 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 delivered 8.6 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 more than 5,800 people, and its nationwide sales network covers 35 regions of Russia.

Etalon Group's assets comprise 38 projects at the design and construction stages, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 6.4 mln sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2022 was RUB 288 billion.

In 2022, Etalon Group's new contract sales totalled 292 ths sqm, or RUB 58.7 billion, not including accumulated new contract sales at YIT Russia as of its acquisition.

The Company's revenue in 2022 amounted to RUB 80.6 billion, with EBITDA of RUB 16.5 billion.

Etalon Group's GDRs have been listed 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. In July 2023, the Company completed the process of changing the basis for its listing on Moscow Exchange.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCGSGDIBSGDGXR