REG - Etalon Group PLC - Etalon Group Operating Results for FY and 4Q 2022

EtalonAnnouncement

03/02/2023 07:30

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RNS Number : 8574O  Etalon Group PLC  03 February 2023

3 February 2023

Etalon Group Reports Operating Results for FY and 4Q 2022

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 fourth quarter and twelve months ended 31
December 2022, based on management accounts.

 

FY 2022 operating highlights

 

·    Deliveries increased by 74% to 735 ths sqm, a record for the Company

·    New contract sales amounted to 292.4 ths sqm, or RUB 58.7 billion,
excluding sales made by YIT Russia prior to its acquisition by Etalon Group

·    Cash collections amounted to RUB 60.4 billion excluding the impact of
the acquisition of YIT Russia, or RUB 75.0 billion including funds accumulated
from YIT Russia's development business as of the moment of Etalon Group's
takeover

·    The average price per sqm increased by 6% year-on-year to RUB 200.6
thousand

·    The average price per sqm of residential property rose by 10%
year-on-year to RUB 261.7 thousand

 

FY 2022 operating results

                                      2022     2021     Change, %
 New sales, sqm                       292,396  446,480  (35%)
 New sales, RUB mln                   58,652   84,388   (30%)
 Number of contracts                  6,457    8,560    (25%)
 Cash collections, RUB mln            60,386   84,094   (28%)
 Average price, RUB/sqm               200,591  189,008  6%
 Average price (apartments), RUB/sqm  261,721  238,677  10%
 Deliveries, sqm                      734,773  421,209  74%

 

Regional breakdown

                                      2022               2021     Change, %
 Moscow and the Moscow region
 New sales, sqm                       121,371            237,412  (49%)
 New sales, RUB mln                   32,296             54,053   (40%)
 Number of contracts                              2,645  4,654    (43%)
 Cash collections, RUB mln            31,501             52,436   (40%)
 Average price, RUB/sqm               266,096            227,675  17%
 Average price (apartments), RUB/sqm  344,131            275,549  25%
 Deliveries, sqm                      343,971            176,067  95%
 St Petersburg
 New sales, sqm                       120,619            209,068  (42%)
 New sales, RUB mln                   20,944             30,335   (31%)
 Number of contracts                  2,609              3,906    (33%)
 Cash collections, RUB mln            24 206             31,658   (24%)
 Average price, RUB/sqm               173,634            145,099  20%
 Average price (apartments), RUB/sqm  250,674            192,124  30%
 Deliveries, sqm                      337,578            245,141  38%
 Other regions
 New sales, sqm                       50,405             -
 New sales, RUB mln                   5,412              -
 Number of contracts                  1,203              -
 Cash collections, RUB mln            4,679              -
 Average price, RUB/sqm               107,369            -
 Average price (apartments), RUB/sqm  119,428            -
 Deliveries, sqm                      53,223             -

 

4Q 2022 operating highlights

 

·    New contract sales exceeded 81.9 ths sqm, or RUB 16.0 billion

·    Cash collections amounted to RUB 16.6 billion

·    The average price per sqm reached RUB 195.3 thousand

·    The average price per sqm of residential property amounted to RUB
229.3 thousand

 

4Q 2022 operating results

                                      4Q 2022  4Q 2021  Change, %
 New sales, sqm                       81,934   129,070  (37%)
 New sales, RUB mln                   16,004   24,851   (36%)
 Number of contracts                  1,770    2,405    (26%)
 Cash collections, RUB mln            16,579   23,897   (31%)
 Average price, RUB/sqm               195,324  192,538  1%
 Average price (apartments), RUB/sqm  229,297  261,121  (12%)
 Deliveries, sqm                      408,804  237,110  72%

 

Quarterly operating performance

                                      4Q 2022  3Q 2022  2Q 2022  1Q 2022  4Q 2021
 New sales, sqm                       81,934   66,986   53,036   90,439   129,070
 New sales, RUB mln                   16,004   13,329   9,638    19,681   24,851
 Number of contracts                  1,770    1,572    1,216    1,899    2,405
 Cash collections, RUB mln            16,579   11,170   11,402   21,235   23,897
 Average price, RUB/sqm               195,324  198,985  181,732  217,611  192,538
 Average price (apartments), RUB/sqm  229,297  250,326  294,096  290,140  261,121
 Deliveries, sqm                      408,804  91,295   58,981   175,693  237,110

 

Monthly sales dynamics in 4Q 2022

                            Oct. 22  Nov. 22  Dec. 22
 New sales, sqm             21,112   25,375   35,447
 New sales, RUB mln         4,197    4,947    6,859
 Cash collections, RUB mln  5,410    4,960    6,209

 

Regional breakdown

                                      4Q 2022                               4Q 2021                     Change, %
 Moscow and the Moscow region
 New sales, sqm                       28,493            56,849                                          (50%)
 New sales, RUB mln                   7,683             14,868                                          (48%)
 Number of contracts                              618   1,146                                           (46%)
 Cash collections, RUB mln            7,687             14,118                                          (46%)
 Average price, RUB/sqm               269,655           261,542                                         3%
 Average price (apartments), RUB/sqm  328,379           329,779                                         -
 Deliveries, sqm                      102,908           85,878                                          20%
 St Petersburg
 New sales, sqm                       25,534            72,220                                          (65%)
 New sales, RUB mln                   5,039             9,982                                           (50%)
 Number of contracts                  533               1,259                                           (58%)
 Cash collections, RUB mln            5,921             9,779                                           (39%)
 Average price, RUB/sqm               197,335           138,221                                         43%
 Average price (apartments), RUB/sqm  261,911           197,093                                         33%
 Deliveries, sqm                      286,952           151,232                                         90%
 Other regions
 New sales, sqm                       27,907            -
 New sales, RUB mln                   3,282             -
 Number of contracts                  619               -
 Cash collections, RUB mln            2,970             -
 Average price, RUB/sqm               117,593           -
 Average price (apartments), RUB/sqm  123,573           -
 Deliveries, sqm                      18,944            -

 

Mortgage contract developments

 

                                  4Q 2022  3Q 2022  2Q 2022  1Q 2022  4Q 2021
 Share of mortgages (total)       58%      37%      25%      33%      40%
 Share of mortgages (apartments)  79%      55%      55%      61%      70%

 

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

 

"Despite all the challenges we faced in 2022, we were able to demonstrate our
fundamental strength while also achieving tangible results.

"Our main growth path in 2022 was the expansion of our geographical footprint.
We established operations in five new regions and added about 20 projects to
our portfolio. We put over 650 ths sqm of NSA from our updated portfolio on
sale - twice as much as the previous year. In addition, we delivered 735 ths
sqm last year, setting a new record and bolstering our position among the five
largest developers in Russia.

"The acquisition of YIT Russia was a major event for the Company in 2022. In
addition to synergies from our combined portfolios and technological
developments, the transaction had a positive impact on cash collections, which
amounted to RUB 75 billion including balances in YIT Russia's accounts.

"The active expansion of our portfolio, improved product affordability and
launch of new buildings helped us return to a trajectory of month-on-month
sales growth by the end of the year. Further work in these areas together with
the launch of more than 850 ths sqm of new space will enable us to support
sustainable business growth and achieve our strategic goals to 2024."

 

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

 

"Financial discipline in the form of cost controls and a balanced approach to
debt management enabled us to demonstrate the strength of our business during
a period of economic instability. We were able to keep the ratio of net
corporate debt to pre-PPA EBITDA at 0.9x, well below the target level of
2x-3x.

 

"Our comfortable debt load and additional liquidity stemming from the release
of escrow accounts will enable us to meet our strategic goals, including the
development of new technologies and the acquisition of new projects, in
addition to implementing projects from our current portfolio."

 

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 (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 8.6 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 27 projects at the design and construction
stages, unsold inventory at completed residential complexes and commercial
properties, with total unsold NSA of 6.0 mln sqm, as well as a construction
and maintenance division. Colliers International valued the Company's total
assets at RUB 270 billion as of 31 December 2021.

 

In 2022, Etalon Group's new contract sales totalled 292 ths sqm, or RUB 58.7
billion.

 

The Company's revenue in 2021 amounted to RUB 87.1 billion, with EBITDA of RUB
17.9 billion.

 

Etalon Group's GDRs have traded 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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