REG - Etalon Group PLC - Etalon Group Announces Record 3Q 2023 Results

EtalonAnnouncement

11/10/2023 07:30

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RNS Number : 6907P  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

 

Etalon Group

IR Team

T: +44 (0) 20 8123 1328

E: ir@etalongroup.com (mailto:ir@etalongroup.com)

 

EM

E: etalon@em-comms.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 8.9 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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