REG - Etalon Group PLC - Etalon Group Announces Record Net Profit for 2022

EtalonAnnouncement

29/03/2023 07:30

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RNS Number : 5420U  Etalon Group PLC  29 March 2023

29 March 2023

 

Etalon Group Announces Record Net Profit for 2022

 

ETALON GROUP PLC ("Etalon Group" or the "Company"), one of Russia's largest
and longest-established development and construction companies, announces the
publication of its audited consolidated IFRS financial statements for the full
year ended 31 December 2022.

 

FY 2022 financial highlights:

 * Revenue for 2022 amounted to RUB 80.6 billion.

 * Gross profit reached RUB 28.2 billion. Gross profit margin increased by 3 p.p.
to 35%.

 * Gross profit before purchase price allocation (PPA) for the period amounted to
RUB 30.5 billion; pre PPA gross profit margin increased by 2 p.p. to 38%.

 * EBITDA amounted to RUB 16.5 billion; EBITDA margin in 2022 was 20%.

 * Pre-PPA EBITDA amounted to RUB 18.8 billion, and pre-PPA EBITDA margin was
23%.

 * Net profit increased by 332% to RUB 13.0 billion.

 * Net corporate debt as of 31 December 2022 was RUB 14.5 billion, and the ratio
of net corporate debt to pre-PPA EBITDA was 0.77x.

 * Funds in escrow accounts reached RUB 60.4 billion.

Commenting on the Company's FY 2022 financial results, Etalon Group CEO Gennadiy Shcherbina said:

"In the face of turbulence and growing competition in the development market,
we focused on improving operational efficiency and maintaining high margins.
In 2022, we undertook a great deal of work to improve the quality of our
portfolio, including by acquiring other players with attractive land banks. In
addition, we focused our efforts on the technological transformation of our
business, which will enable us to successfully compete in the market by
reducing project production costs.

"As a result, gross profit increased in 2022 from RUB 27.8 billion to RUB 28.2
billion. Pre-PPA gross profit margin increased year-on-year once again, from
36% to 38%, exceeding our strategic target of 35%. In our main segment,
residential development, pre-PPA profit margin increased from 38% to 40%.

"Thanks to the conclusion of a deal with YIT on favourable terms, net profit
for the year increased more than fourfold, reaching a record RUB 13 billion.

"Recognising the strategic importance of new technologies for business
development, we continue to actively develop digital products and technologies
for industrial housing construction. Our comfortable financial position and
proprietary solutions developed as part of our technological transformation
have made it possible for us to achieve our strategic goals."

Commenting on the financial results for FY 2022, Etalon Group's Chief
Financial Officer, Ilya Kosolapov, added:

"Despite market turbulence and the increase in our gross debt, we were able to
maintain leverage at a comfortable level while also keeping the cost of debt
servicing down. The ratio of net corporate debt to pre-PPA EBITDA was less
than 1x, well below our target of 2x-3x. The average interest rate on our loan
portfolio decreased from 6.5% at the end of 2021 to 5.2% as of 31 December
2022. At the same time, funds released from escrow accounts for delivered
buildings provided additional liquidity. All of these factors have enabled us
to achieve our strategic objectives, including the development of new
technologies and the acquisition of new projects, while also implementing
projects from our current portfolio."

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

Contact details

Etalon Group

IR Team

+44 (0) 20 8123 1328

Email: ir@etalongroup.com

EM

E-mail: 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 over 4,600 people, and its nationwide sales
and marketing network covers 59 Russian cities.

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 traded on the Main Market of the London Stock
Exchange since 20 April 2011 (under the ticker ETLN) and in the Level 1
quotation list of Moscow Exchange since 31 January 2020.

 

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