REG - Etalon Group PLC - Etalon Group 9M and 3Q 2019 Operating Results

EtalonAnnouncement

16/10/2019 07:30

RNS Number : 9969P
Etalon Group PLC
16 October 2019
 


16 October 2019
 
Etalon Group 9M and 3Q 2019 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 nine months and three months ended 30 September 2019, based on management accounts.
 
9M 2019 operating highlights
 
·    New contract sales increased by 26% year-on-year to RUB 55,833 million and by 10% year-on-year to 458,869 sqm
·    The number of contracts grew by 13% year-on-year and amounted to 9,109
·    9M 2019 cash collections rose by 39% year-on-year to RUB 58,923 million
 
9M 2019 operating results
 







9M 2019


9M 2018


Change, %




New sales, sqm


458,869


416,640


10%




New sales, mln RUB


55,833


44,286


26%




Number of contracts


9,109


8,067


13%




Cash collections, mln RUB


58,923


42,482


39%




Deliveries, sqm


313,573


56,270


457%



 
Regional breakdown
 







9M 2019


9M 2018


Change, %




Moscow metropolitan area




New sales, sqm


 232,475


 196,640


18%




New sales, mln RUB


 32,529


 21,466


52%




Number of contracts


 4,452


 3,818


17%




Cash collections, mln RUB


35,768


20,196


77%




Deliveries, sqm


250,648


0


-




St Petersburg




New sales, sqm


 226,394


 220,000


3%




New sales, mln RUB


 23,303


 22,820


2%




Number of contracts


 4,657


 4,249


10%




Cash collections, mln RUB


23,154


22,286


4%




Deliveries, sqm


62,926


56,270


12%












 
3Q 2019 operating highlights
 
·    New contract sales amounted to RUB 17,098 million and 136,658 sqm
·    Cash collections rose by 7% year-on-year to RUB 16,114 million
·    Average price per sqm was RUB 125,118, up by 15% year-on-year
·    Average price per sqm of apartments grew by 22% year-on-year to RUB 153,394
 
3Q 2019 operating results
 



  


3Q 2019


3Q 2018


Change, %




New sales, sqm


136,658


154,097


(11%)




New sales, mln RUB


17,098


16,799


2%




Number of contracts


2,579


2,962


(13%)




Cash collections, mln RUB


16,114


15,011


7%




Average price, RUB/sqm


 125,118


 109,015


15%




Average price (apartments), RUB/sqm


 153,394


 125,889


22%




Deliveries, sqm


67,230


56,270


19%



 
Regional breakdown
 







3Q 2019


3Q 2018


Change, %




Moscow metropolitan area




New sales, sqm


 71,075


 77,106


 (8%)




New sales, mln RUB


 10,051


 8,453


19%




Number of contracts


 1,235


 1,430


 (14%)




Cash collections, mln RUB


  9,738


 7,312


33%




Average price, RUB/sqm


  141,407


109,630  


29%




Average price (apartments), RUB/sqm


  174,306


129,233


35%




Deliveries, sqm


4,304


0


-




St Petersburg




New sales, sqm


 65,583


 76,991


 (15%)




New sales, mln RUB


 7,048


 8,346


 (16%)




Number of contracts


 1,344


 1,532


 (12%)




Cash collections, mln RUB


 6,376


 7,699


 (17%)




Average price, RUB/sqm


 107,465


 108,400


 (1%)




Average price (apartments), RUB/sqm


 131,208


 122,901


7%




Deliveries, sqm


62,926


56,270


12%










 
Etalon Group stand-alone 3Q 2019 operating results
 







3Q 2019


3Q 2018


Change, %




New sales, sqm


 110,354


 154,097


 (28%)




New sales, mln RUB


 12,786


 16,799


 (24%)




Number of contracts


 2,252


 2,962


 (24%)




Cash collections, mln RUB


  12,314


  15,011


 (18%)




Average price, RUB/sqm


 115,864


 109,015


6%




Average price (apartments), RUB/sqm


  138,406


  125,889


 10%




Deliveries, sqm


62,926


56,270


12%



 
Leader-Invest stand-alone 3Q 2019 operating results
 







3Q 2019


3Q 2018


Change, %




New sales, sqm


 26,303


 16,786


57%




New sales, mln RUB


 4,312


 3,061


41%




Number of contracts


 327


 295


11%




Cash collections, mln RUB


 3,800


 2,591


47%




Average price, RUB/sqm


 163,942


 182,381


 (10%)




Average price (apartments), RUB/sqm


 229,522


 199,130


15%




Deliveries, sqm


4,304


9,961


(57%)



 
Mortgage contract developments
 







3Q 2019


2Q 2019


1Q 2019


4Q 2018


3Q 2018




Share of mortgages


36%


36%


37%


41%


41%



 
Commenting on the 9M and 3Q 2019 operating results, Etalon Group Chief Executive Officer Gennadiy Shcherbina said:
 
"In 9M 2019, Etalon Group once again achieved record results across all operating metrics. New contract sales, including the contribution from Leader-Invest, increased by 13% year-on-year, with more than nine thousand new contracts signed. New sales in volume and monetary terms increased by 10% and 26% year-on-year, respectively, to 459 ths sqm and RUB 56 billion. This result reflects 66% of our annual sales plan in square metres and 70% of the plan in monetary terms. At the same time, cash collections reached a record RUB 59 billion, up by 39% year-on-year, which corresponds to 79% of our annual plan and lays a strong foundation for achieving our goals for 2019."
 
Etalon Group Head of Moscow Operations Maxim Berlovich added:
 
"Real estate sales in the Moscow metropolitan area made a significant contribution to Etalon Group's results. Through the acquisition of Leader-Invest's premium projects, sales in monetary terms in Moscow increased by 52% year-on-year to RUB 32.5 billion, and cash collections reached nearly RUB 36 billion, increasing by 77% year-on-year, which confirms our view that this region will be the most promising for development in the years ahead. We anticipate that the transition to a single Etalon Group brand in October 2019 will help to further strengthen the Company's position in Moscow and will provide strong support for operating performance."
 
Conference call and webcast
 
The Company will host a conference call for investors and analysts today at 15:00 London time (17:00 Moscow; 10:00 New York).
 
On the call, the Etalon Group management team will present the Company's 9M 2019 operating and 1H 2019 financial results, followed by a question and answer session for participants.
 
Webcast
https://edge.media-server.com/mmc/p/bghmztuv  
 
Dial-in numbers:
+44 2071 928000 - Standard International
+44 844 571 8892 - London
+7 495 249 9849 - Moscow
+1 631 510 7495 - New York
 
Conference ID Code: 7663978
 
This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/
 
Etalon Group IR Team
T: +44 20 8123 1328
E: info@etalongroup.com
 
EM
Sam VanDerlip
T: +44 7554 993 032
T: +7 499 918 3134
E: vanderlip@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. With a more than 30-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 6.3 million sqm of real estate.
 
Etalon Group's traditionally conservative approach to managing its financial position, solid cash generation and strict working capital management support a secure liquidity position: net cash as of 31 December 2018 was RUB 2.2 billion.
 
The Company is vertically integrated, which helps it to control costs, quality and timing, as well as maintain best-in-class profitability. Etalon Group employs over 5,000 people, and its nationwide sales and marketing network covers 58 Russian cities.
 
In 2019, Etalon Group acquired and consolidated 100% in Leader-Invest, one of Moscow's largest residential developers by size of land bank and number of projects currently available for sale.
 
Etalon Group's total assets, including the aforementioned consolidation and 100% ownership of ZIL-Yug project, comprise 53 projects under development, completed residential and commercial properties, as well as a construction and maintenance division, with total unsold NSA of 4.0 million sqm. Knight Frank valued the Company's total assets at RUB 206,071 million as of 31 December 2018.
 
For the year ended 31 December 2018, Etalon Group's new contract sales totalled 628 ths sqm, or RUB 68,731 million. Deliveries in 2018 amounted to 479 ths sqm.
 
The Company recorded revenue of RUB 72.3 billion and EBITDA of RUB 5.7 billion for the year ended 31 December 2018.
 
Etalon Group's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.
 




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