REG - Etalon Group PLC - Etalon Group 1H and 2Q 2021 Operating Results

EtalonAnnouncement

21/07/2021 07:30

RNS Number : 9474F
  
Etalon Group PLC
  
21 July 2021
  
 

 
21 July 2021
 
Etalon Group 1H and 2Q 2021 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 six months and three months ended 30 June 2021, based on management accounts.
 
1H 2021 operating highlights
·    New contract sales in monetary terms increased by 39% year-on-year reaching a record RUB 41.1 billion
·    Cash collections rose by 30% year-on-year to RUB 40.9 billion
·    Average price per sqm grew by 39% year-on-year to RUB 186.2 ths
·    Average price per sqm of apartments was RUB 224.7 ths, up by 38% year-on-year
·    Net corporate debt stood at RUB 626 million as of 30 June 2021
 
1H 2021 operating results
 



 


1H 2021


1H 2020


Change, %




New sales, sqm


220,940


220,955


-




New sales, mln RUB


41,147


29,522


39%




Number of contracts


4,286


3,882


10%




Cash collections, mln RUB


40,889


31,547


30%




Deliveries, sqm


3,028


177,359


(98%)



 
Regional breakdown
 







1H 2021


1H 2020


Change, %




Moscow metropolitan area




New sales, sqm


131,117


105,938


24%




New sales, mln RUB


27,882


15,887


76%




Number of contracts


2,509


1,762


42%




Cash collections, mln RUB


26,485


16,500


61%




Deliveries, sqm


3,028


103,888


(97%)




St Petersburg




New sales, sqm


89,822


115,017


(22%)




New sales, mln RUB


13,265


13,635


(3%)




Number of contracts


1,777


2,120


(16%)




Cash collections, mln RUB


14,404


15,047


(4%)




Deliveries, sqm


-


73,472


-










 
2Q 2021 operating highlights
 
·    The number of new contracts grew by 47% to 2,297
·    New contract sales amounted to 122.3 ths sqm and RUB 24.9 billion, up by 29% and 115%, respectively 
·    Cash collections increased by 64% to RUB 22.9 billion
·    Average price per sqm was RUB 203.9 ths, up by 67% year-on-year
·    Average price per sqm of apartments grew by 49% year-on-year to RUB 236.3 ths
 
2Q 2021 operating results
 







2Q 2021


2Q 2020


Change, %




New sales, sqm


122,270


94,984


29%




New sales, mln RUB


24,933


11,585


115%




Number of contracts


2,297


1,559


47%




Cash collections, mln RUB


22,853


13,942


64%




Average price, RUB/sqm


203,915


121,971


67%




Average price (apartments), RUB/sqm


236,342


159,063


49%




Deliveries, sqm


-


88,847


-



 
Regional breakdown
 







2Q 2021


2Q 2020


Change, %




Moscow metropolitan area




New sales, sqm


79,352


46,767


70%




New sales, mln RUB


18,431


5,746


221%




Number of contracts


1,479


640


131%




Cash collections, mln RUB


16,624


7,176


132%




Average price, RUB/sqm


232,272


122,861


89%




Average price (apartments), RUB/sqm


262,298


199,060


32%




Deliveries, sqm


-


15,375


-




St Petersburg




New sales, sqm


42,918


48,218


(11%)




New sales, mln RUB


6,501


5,840


11%




Number of contracts


818


919


(11%)




Cash collections, mln RUB


6,229


6,766


(8%)




Average price, RUB/sqm


151,486


121,108


25%




Average price (apartments), RUB/sqm


184,132


135,539


36%




Deliveries, sqm


-


73,472


-










 
Quarterly operating performance
 



 


2Q 2021


1Q 2021


4Q 2020


3Q 2020


2Q 2020




New sales, sqm


122,270


98,670


166,788


150,451


94,984




New sales, mln RUB


24,933


16,214


26,418


23,983


11,585




Number of contracts


2,297


1,989


3,137


2,706


1,559




Cash collections, mln RUB


22,853


18,036


29,203


21,235


13,942




Average price, RUB/sqm


203,915


164,329


158,392


159,405


121,971




Average price (apartments), RUB/sqm


236,342


208,095


191,853


186,327


159,063




Deliveries, sqm


-


3,028


347,396


15,570


88,847



 
Mortgage contract developments
 



 


2Q 2021


1Q 2021


4Q 2020


3Q 2020


2Q 2020




Share of mortgages (total)


47%


37%


44%


47%


44%




Share of mortgages (apartments)


67%


63%


65%


64%


63%



 
Commenting on the 1H and 2Q 2021 operating results, Etalon Group CEO Gennadiy Shcherbina said:
 
"Etalon Group delivered strong results for the first half of 2021. The Company sold 221 ths sqm of real estate worth more than RUB 41 billion, up by 39% year-on-year in monetary terms. Cash collections also grew by a significant 30% year-on-year. The second quarter made an important contribution our half-year results, and it was a record-setting quarter in terms of sales in rouble terms. 
 
"The diversification of our offer and rising average selling prices were major factors supporting sales. The average price for all NSA rose by 67% to RUB 204 thousand, which enabled us to more than double sales in rouble terms to RUB 24.9 billion. Our 2Q and 1H 2021 operating results were positively impacted by the launch of sales at a new stage of Nagatino-i-Land and our flagship project ZIL-Yug, with the starting price approaching RUB 300 thousand per sqm. 
 
"As part of our plan to replenish the land bank, the Company recently acquired a new site in the Pushkinsky district of St Petersburg and plans to carry out its previously announced acquisitions programme in St Petersburg and Moscow by the end of the year. We expect that further diversification of the portfolio through new projects, coupled with the ongoing digitalisation and transformation of the business, will strengthen Etalon Group's position as a market leader, while also helping us to achieve our strategic growth plans."
 
Etalon Group CFO Ilya Kosolapov added:
 
"Since the beginning of the year, Etalon Group has improved its financial position considerably. Thanks to our work on our loan portfolio, we managed to reduce the average debt financing rate from 8.3% to 6.7%. Funds in escrow accounts reached RUB 38 billion, which enables us to receive project financing at a preferential rate. Without question, the most important event for the Company was our successful SPO, which raised over USD 150 million for the expansion of our project portfolio and business development. 
 
"All these factors combined to decrease our debt substantially: net corporate debt fell from RUB 19.6 billion at the beginning of the year to RUB 626 million at the end of the first half of the year. The net corporate debt to EBITDA ratio reached nearly zero, which is well below the target stipulated by Etalon Group's Strategy. This strong financial position creates ample opportunity for us to successfully implement our plans to expand the business and achieve our strategic goals."
 
Conference call and webcast
 
The Company will host a conference call for investors and analysts today at 14:30 London time (16:30 Moscow; 09:30 New York).
 
On the call, the Etalon Group management team will present the Company's 1H and 2Q 2021 operating results, followed by a question and answer session for participants.
 
Webcast
 
https://edge.media-server.com/mmc/p/p6aabcj4
 
 
Dial-in numbers:
 
+44 2071 928338 - Standard International
+44 844 4819 752 - London
+7 495 249 9851- Moscow
+1 646 741 3167 - New York
 
Conference ID Code: 4292945
 
This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/.
 
Contact Information
 
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 the largest development and construction companies in Russia. 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 7.5 million sqm of real estate.
 
With our integrated business model, we are able to create added value for clients and shareholders at every stage of development: from land plot analysis and acquisition to the delivery of completed properties and provision of post-development housing services. Etalon Group employs over 4,600 people, and its nationwide sales and marketing network covers 59 Russian cities.
 
Etalon Group's total assets comprise 20 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 2.8 million sqm, as well as construction and maintenance division. Colliers International valued the Company's total assets at RUB 204 billion as of 31 December 2020.
 
In 2020, Etalon Group's new contract sales totalled 538 ths sqm, or RUB 79.9 billion. Deliveries in 2020 amounted to 540 ths sqm.
 
The Company's revenue in 2020 amounted to RUB 78.7 billion, with EBITDA of RUB 12.6 billion.
 
Etalon Group's GDRs have traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 quotation list of Moscow Exchange since 31 January 2020 under the ticker ETLN.

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
 
 
UPDUASVRAVUBURR