REG - Etalon Group PLC - Etalon Group Reports 1Q 2020 Operating Results

EtalonAnnouncement

17/04/2020 07:30

RNS Number : 9554J
  
Etalon Group PLC
  
17 April 2020
  
 

17 April 2020 
 
Etalon Group Reports 1Q 2020 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 ended 31 March 2020, based on management accounts.
 
1Q 2020 operating highlights
 
·    The number of new contracts came to 2,323
·    New contract sales amounted to 125,971 sqm and RUB 17,936 million 
·    Cash collections reached RUB 17,604 million
·    Average price per sqm was RUB 142,384, up by 20% year-on-year
·    Average price per sqm of apartments grew by 18% year-on-year to RUB 165,481
·    Deliveries reached 89 ths sqm of NSA
 
1Q 2020 operating results
 




 


1Q 2020


1Q 2019


Change, %




New sales, sqm


125,971


167,954


(25%)




New sales, mln RUB


17,936


19,952


(10%)




Number of contracts


2,323


3,470


                   (33%)




Cash collections, mln RUB


17,604


23,632


(26%)




Average price, RUB/sqm


142,384


118,796


20%




Average price (apartments), RUB/sqm


165,481


140,036


18%




Deliveries, sqm


88,513


34,539


156%




 
Regional breakdown 
 




 


1Q 2020


1Q 2019


Change, %




Moscow Metropolitan Area




New sales, sqm


59,171


86,148


(31%)




New sales, mln RUB


10,141


11,602


(13%)




Number of contracts


1,122


1,763


(36%)




Cash collections, mln RUB


9,324


14,262


(35%)




Average price, RUB/sqm


171,385


134,674


27%




Average price (apartments), RUB/sqm


207,899


153,058


36%




Deliveries, sqm


88,513


34,539


156%




St Petersburg




New sales, sqm


66,800


81,806


(18%)




New sales, mln RUB


7,795


8,350


                     (7%)




Number of contracts


1,201


1,707


(30%)




Cash collections, mln RUB


8,281


9,370


(12%)




Average price, RUB/sqm


116,696


            102,075


14%




Average price (apartments), RUB/sqm


131,629


125,030


5%




Deliveries, sqm


-


-


-




 
Quarterly operating performance
 




 


1Q 2020


4Q 2019


3Q 2019


2Q 2019


1Q 2019




New sales, sqm


125,971


171,530


136,658


154,257


167,954




New sales, mln RUB


17,936


21,795


17,098


18,782


19,952




Number of contracts


2,323


2,931


2,579


3,060


3,470




Cash collections, mln RUB


17,604


18,791


16,114


19,177


23,632




Average price, RUB/sqm


142,384


127,060


 125,118 


121,759


118,796




Average price (apartments), RUB/sqm


165,481


156,271


 153,394 


146,524


140,036




Deliveries, sqm


88,513


308,294


67,230


211,805


34,539




 
Mortgage contract developments
                




 


1Q 2020


4Q 2019


3Q 2019


2Q 2019


1Q 2019




Share of mortgages


36%


35%


36%


36%


37%



 
 
 
 
 
 
 
 



 
Commenting on the 1Q 2020 operating results, Etalon Group CEO Gennadiy Shcherbina said:
 
"Etalon Group achieved solid operating results despite the expected year-on-year decline in key operating metrics resulting from the high base effect caused by front-loaded demand at the beginning of last year. In monetary terms, we reported the second highest first quarter result ever achieved by Etalon Group of almost RUB 18 billion. The average price of apartments reached a record high of RUB 165.5 ths per sqm, an increase of 18% year-on-year.
 
"In the first three months of 2020, sales grew by 15% month-on-month in monetary terms, indicating demand for residential real estate was growing prior to the introduction of restrictive measures aimed at combating the spread of COVID-19.
 
"In order to maintain demand in the changing environment, we were one of the first to launch remote sales channels, such as online booking and sales, which has enabled customers to purchase real estate without visiting an office. In the longer term these new online channels will help us become even closer to our potential customers, expand our customer base, and reduce commercial expenses.
 
"In the current situation, the health of our employees, clients and partners is our top priority. We have introduced a number of measures intended to protect our employees from potential infection, and regularly monitor the health of those who are not able to work remotely. As of today, Etalon Group is fully compliant with all recommendations by Russian authorities meant to prevent the spread of COVID-19, including the recommendation for all developers to temporarily suspend construction for the week starting 13 April in the Moscow Metropolitan area. At the same time, Etalon Group is well positioned to quickly reinstate construction once the restrictions are lifted, even if the suspension is extended for a longer period. Etalon Group is fortunate to have in-house general- and subcontractors, as well as longstanding relationships with a range of suppliers, giving us the ability to restart and even accelerate the pace of construction on short notice. Moreover, our projects under construction are well diversified between Moscow and St Petersburg, where construction work has not been restricted, which will provide additional support to financial performance."
 
Conference call and webcast 
 
The Company will host a conference call for investors and analysts today at 14:00 London time (16:00 Moscow; 09:00 New York).
 
On the call, the Etalon Group management team will present the Company's 1Q 2020 operating results, FY 2019 IFRS financial results, and provide an update on the impact of the COVID-19 situation in Russia. Following the presentation there will be a question and answer session for participants.
 
Webcast
https://edge.media-server.com/mmc/p/jr8qks6q
 
Dial-in numbers: 
+44 2071 928338 - Standard International
+44 844 481 9752 - London
+7 495 249 9851 - Moscow 
+1 646 741 3167 - New York 
 
Conference ID Code: 9577776
 
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: ir@etalongroup.com   
 
EM 

Sam VanDerlip

T: +44 207 002 7859

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 7 million sqm of real estate.
 
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 comprise 33 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 3.3 million sqm, as well as construction and maintenance division. Colliers International valued the Company's total assets at RUB 188 billion as of 31 December 2019.
 
For the year ended 31 December 2019, Etalon Group's new contract sales totalled 630 ths sqm, or RUB 77.6 billion. Deliveries in 2019 amounted to 622 ths sqm.
 
The Company recorded a record revenue of RUB 84.3 billion and EBITDA of RUB 8.9 billion for the year ended 31 December 2019.
 
Etalon Group's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 List of Moscow Exchange since 31 January 2020 under the ticker ETLN.


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