Etalon Group Announces Record 3Q 2023 Results

Etalon Group PLC

11 October 2023

 

11 October 2023

Record 3Q 2023 Results: Fourfold Increase in Regional Sales and Double-Digit Business Growth

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 and nine months ended 30 September 2023, based on the Company's management accounts.

9M 2023 operating highlights:

·    New contract sales were up by 62% year-on-year to 340.6 ths sqm

·    The total value of new contracts increased by 53% year-on-year to RUB 65.2 billion

·    Sales in regional projects increased by a factor of 5.1 year-on-year to 115.6 ths sqm, and the total value of regional contracts increased by a factor of 6.4 to RUB 13.5 billion

·    The share of regional projects among overall sales was 34% in terms of floor space and 21% in rouble terms

·    Cash collections increased by 21% to RUB 52.9 billion

·    Average price per sqm was RUB 191.4 thousand, and the average price per sqm of residential property was RUB 227.6 thousand

9M 2023 operating results:

	9M 2022	9M 2023	Change, %
New contract sales, sqm	210,461	340,563	62%
Moscow and the Moscow region	92,878	131,368	41%
St Petersburg	95,085	93,565	(2%)
Other regions	22,498	115,631	414%
New contract sales, RUB mln	42,648	65,172	53%
Moscow and the Moscow region	24,613	35,657	45%
St Petersburg	15,905	15,979	0%
Other regions	2,130	13,536	535%
Number of contracts	4,687	7,163	53%
Moscow and the Moscow region	2,027	2,662	31%
St Petersburg	2,076	2,060	(1%)
Other regions	584	2,441	318%
Cash collections, RUB mln	43,807	52,894	21%
Moscow and the Moscow region	23,814	26,886	13%
St Petersburg	18,284	14,118	(23%)
Other regions	1,709	11,890	596%
Average price, RUB/sqm	202,641	191,364	(6%)
Moscow and the Moscow region	265,004	271,432	2%
St Petersburg	167,270	170,776	2%
Other regions	94,686	117,059	24%
Average price (apartments), RUB/sqm	276,864	227,565	(18%)
Moscow and the Moscow region	349,523	339,524	(3%)
St Petersburg	247,280	247,390	0%
Other regions	113,472	120,657	6%

3Q 2023 operating highlights:

·    New contract sales were up by 133% year-on-year to 156.3 ths sqm

·    Sales in monetary terms increased by 134% to a record RUB 31.2 billion

·    Sales in regional projects increased by a factor of 3.1 to 55 ths sqm, and the total value of regional contracts increased by a factor of 3.7 to RUB 6.5 billion

·    The share of regional projects among overall sales was 35% in terms of floor space and 21% in rouble terms

·    Cash collections increased by 121% to RUB 24.7 billion

·    Average price per sqm was RUB 199.4 thousand, and the average price per sqm of residential property was RUB 234.2 thousand

3Q 2023 operating results:

	3Q 2022	3Q 2023	Change, %
New contract sales, sqm	66,986	156,295	133%
Moscow and the Moscow region	25,228	60,859	141%
St Petersburg	23,769	40,464	70%
Other regions	17,989	54,973	206%
New contract sales, RUB mln	13,329	31,169	134%
Moscow and the Moscow region	7,100	18,168	156%
St Petersburg	4,482	6,468	44%
Other regions	1,747	6,532	274%
Number of contracts	1,572	3,343	113%
Moscow and the Moscow region	565	1,256	122%
St Petersburg	541	947	75%
Other regions	466	1,140	145%
Cash collections, RUB mln	11,170	24,684	121%
Moscow and the Moscow region	5,405	13,206	144%
St Petersburg	4,354	6,065	39%
Other regions	1,410	5,413	284%
Average price, RUB/sqm	198,985	199,424	0%
Moscow and the Moscow region	281,433	298,534	6%
St Petersburg	188,567	159,855	(15%)
Other regions	97,128	118,830	22%
Average price (apartments), RUB/sqm	250,326	234,170	(6%)
Moscow and the Moscow region	351,744	354,009	1%
St Petersburg	258,167	251,681	(3%)
Other regions	114,362	121,824	7%

Quarterly operating results:

	3Q 2022	4Q 2022	1Q 2023	2Q 2023	3Q 2023
New contract sales, sqm	66,986	81,934	73,633	110,635	156,295
New contract sales, RUB mln	13,329	16,004	13,436	20,566	31,169
Number of contracts	1,572	1,770	1,555	2,265	3,343
Cash collections, RUB mln	11,170	16,579	12,001	16,209	24,684
Average price, RUB/sqm	198,985	195,324	182,478	185,892	199,424
Average price (apartments), RUB/sqm	250,326	229,297	219,541	223,389	234,170
Share of mortgages (total)	37%	58%	47%	50%	49%
Share of mortgages (apartments)	55%	79%	70%	71%	72%

Commenting on the Company's 3Q and 9M 2023 operating results, Etalon Group CEO Gennadiy Shcherbina said:

"Over the first nine months of 2023 the Company achieved double-digit growth in operating performance, as set out in the strategy. What's more, the last quarter was one of the strongest in Etalon Group's history. From July to September we sold more than 156 ths sqm, with a record RUB 31.2 billion in new contract sales. Cash collections more than doubled year-on-year to RUB 24.7 billion.

The main driver of growth was regional sales. In the third quarter we increased property sales in regional projects threefold year-on-year, with the value of contracts in the regions increasing almost fourfold. The regions now account for around 35% of all sales in terms of square metres, and the Green River project in Omsk and the Solnechniy project in Ekaterinburg are among the sales leaders in our portfolio. At the same time, thanks to stable demand, the upward trend in the average price of apartments in the regions remains at 7% year-on-year.

We plan to continue actively working on scaling up the business. Strengthening our presence in promising regional markets with stable demand will enable the Company to achieve market-beating growth and multiply its sales and revenue in the coming years."

Contact information

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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 8.9 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 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 included 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.

 

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