REG - Etalon Group PLC - Etalon Announces Operating Results for Jan–Apr 23

EtalonAnnouncement

30/05/2023 07:15

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RNS Number : 9907A  Etalon Group PLC  30 May 2023

30 May 2023

 

Etalon Group Announces Operating Results for January-April 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 January-April 2023, based on management
accounts.

 

Operating highlights:

 

·    New contract sales in terms of floor space increased from 18.6 ths
sqm in January to 39.4 ths sqm in April (up 112%)

·    In monetary terms, new contract sales increased from RUB 3.2 billion
in January to RUB 7.3 billion in April (up 124%)

·    New contract sales in 1Q 2023 amounted to 74 ths sqm and RUB 13.4
billion; cash collections amounted to RUB 12 billion; in April, 39.4 ths sqm
was sold for RUB 7.3 billion, an increase of 67% compared with April 2022

·    Sales in regional markets in 1Q 2023 accounted for 34% of floor space
sold and 22% of sales in monetary terms

·    As of 30 April 2023, the ratio of net corporate debt to pre-PPA
EBITDA was 1.0x, with a target of 2x-3x

 

 

Sales dynamics in January-April 2023

                            Jan 2023  Feb 2023  Mar 2023  Apr 2023
 New sales, sqm             18,589    21,855    33,189    39,389
 m-o-m change                         18%       52%       19%
 New sales, RUB mln         3,249     3,701     6,486     7,262
 m-o-m change                         14%       75%       12%
 Cash collections, RUB mln  4,133     3,275     4,593     5,216
 m-o-m change                         (21%)     40%       14%

 

Quarterly operating performance

                                      1Q 2022  2Q 2022  3Q 2022  4Q 2022  1Q 2023
 New sales, sqm, including:           90,439   53,036   66,986   81,934   73,633
 Moscow and the Moscow region         47%      47%      38%      35%      40%
 St Petersburg                        53%      44%      35%      31%      26%
 Other regions                        -        9%       27%      34%      34%
 New sales, RUB mln, including:       19,681   9,638    13,329   16,004   13,436
 Moscow and the Moscow region         60%      59%      53%      48%      53%
 St Petersburg                        40%      37%      34%      31%      25%
 Other regions                        -        4%       13%      21%      22%
 Number of contracts                  1,899    1,216    1,572    1,770    1,555
 Cash collections, RUB mln            21,235   11,402   11,170   16,579   12,001
 Average price, RUB/sqm               217,611  181,732  198,985  195,324  182,478
 Average price (apartments), RUB/sqm  290,140  294,096  250,326  229,297  219,541
 Deliveries, sqm                      175,693  58,981   91,295   408,804  88,068

 

Operating results for April 2023

                Apr 2022                Apr 2023  Change, %
 New sales, sqm                23,520   39,389    67%
 New sales, RUB mln            4,352    7,262     67%
 Number of contracts           517      712       38%
 Cash collections, RUB mln     6,415    5,216     (19%)
 Average price, RUB/sqm        185,049  184,349   0%

 

Mortgage contract developments

                                  1Q 2022  2Q 2022  3Q 2022  4Q 2022  1Q 2023
 Share of mortgages (total)       33%      25%      37%      58%      47%
 Share of mortgages (apartments)  61%      55%      55%      79%      70%

 

 

Commenting on the Company's operating results in the first four months of
2023, Etalon Group CEO Gennadiy Shcherbina said:

 

"Since the beginning of the year, we have noted a steadily improving sales
trend: sales volumes in terms of floor space and in monetary terms have
increased from month to month; they doubled in April 2023 compared with
January and increased by 67% compared with April 2022. The total sales volume
in terms of floor space in the first four months of this year was practically
the same as the previous year, even when taking into account the unusually
high demand for real estate in February-March 2022.

 

"The main factors driving sales are the gradual recovery in consumer
confidence and the expansion of our offer in both our traditional markets and
new regional markets. Last year, we put more than 650 ths sqm on sale, largely
in the second half of the year, which drove an increase in new contract sales
at the beginning of this year. In 2023, we plan to put about 850 ths sqm on
sale - 30% more than the previous year - which will further diversify our
offer and enable us to embark on a path to sustainable growth.

 

"Nearly a quarter of the total value of the contracts concluded in 1Q 2023
came from our projects in Omsk, Ekaterinburg, Kazan and Tyumen. Our regional
sales have grown steadily since our expansion into regional markets. More than
40% of the floor space that we plan to put on the market in 2023 is in
regional projects. We expect that new launches combined with strong demand
will enable us to take a leading position in region markets."

 

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

"Despite the active expansion of our sales portfolio, our leverage remains at
a comfortable level. The ratio of our net corporate debt as of the end of
April 2023 to 2022 pre-PPA EBITDA remains at 1x. Our comfortable financial
position and additional liquidity stemming from the release of escrow accounts
provide us with opportunities to continue pursuing our strategic regional
expansion and technological development programmes while also enlarging our
portfolio in our traditional markets through both organic and inorganic
growth."

This and other announcements are available on the Etalon Group website:
https://www.etalongroup.com/investor-relations/investor-news/
(https://www.etalongroup.com/ru/investoram/novosti/)

 

Contact information

 

Etalon Group

IR Team

T: +44 (0) 20 8123 1328

E: ir@etalongroup.com

 

EM

E: etalon (mailto:etalon@em-comms.com) @ (mailto:etalon@em-comms.com) em
(mailto:etalon@em-comms.com) - (mailto:etalon@em-comms.com) comms
(mailto:etalon@em-comms.com) . (mailto:etalon@em-comms.com) com
(mailto: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.

 

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