REG - Etalon Group PLC - Etalon Group Reports 1Q 2022 Operating Results

EtalonAnnouncement

27/04/2022 07:45

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RNS Number : 5085J  Etalon Group PLC  27 April 2022

27 April 2022

 

Etalon Group Reports 1Q 2022 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 first quarter ended 31 March 2022, based
on management accounts.

 

1Q 2022 operating highlights

 

·    New contract sales amounted to 90.4 ths sqm

·    New contract sales in monetary terms rose by 21% year-on-year and
totalled RUB 19.7 billion

·    The number of new contracts amounted to 1,899

·    Cash collections rose by 18% year-on-year to RUB 21.2 billion

·    The average price per sqm increased by 32% year-on-year to RUB 217.6
ths

·    The average price per sqm for residential real estate grew by 39%
year-on-year to RUB 290.1 ths

 

1Q 2022 operating results

 

                                      1Q 2021  1Q 2022  Change, %
 New sales, sqm                       98,670   90,439   (8%)
 New sales, RUB mln                   16,214   19,681   21%
 Number of contracts                  1,989    1,899                (5%)
 Cash collections, RUB mln            18,036   21,235   18%
 Average price, RUB/sqm               164,329  217,611  32%
 Average price (apartments), RUB/sqm  208,095  290,140  39%
 Deliveries, sqm                      3,028    175,693  58x

 

Regional breakdown

 

                                      1Q 2021            1Q 2022  Change, %
 Moscow metropolitan area
 New sales, sqm                       51,766             42,536   (18%)
 New sales, RUB mln                   9,451              11,793   25%
 Number of contracts                              1,030  824      (20%)
 Cash collections, RUB mln            9,861              11,609   18%
 Average price, RUB/sqm               182,565            277,236  52%
 Average price (apartments), RUB/sqm  230,041            340,263  48%

 St Petersburg
 New sales, sqm                       46,905             47,903   2%
 New sales, RUB mln                   6,764              7,888    17%
 Number of contracts                  959                1,075    12%
 Cash collections, RUB mln            8,175              9,627    18%
 Average price, RUB/sqm               144,203            164,666  14%
 Average price (apartments), RUB/sqm  184,154            236,526  28%

 

Quarterly operating performance

 

                                      1Q 2021  2Q 2021  3Q 2021  4Q 2021  1Q 2022
 New sales, sqm                       98,670   122,270  96,470   129,070  90,439
 New sales, RUB mln                   16,214   24,933   18,390   24,851   19,681
 Number of contracts                  1,989    2,297    1,869    2,405    1,899
 Cash collections, RUB mln            18,036   22,853   19,308   23,897   21,235
 Average price, RUB/sqm               164,329  203,915  190,633  192,538  217,611
 Average price (apartments), RUB/sqm  208,095  236,342  244,928  261,121  290,140

 

Mortgage contract developments

 

                   1Q 2021                 2Q 2021  3Q 2021  4Q 2021  1Q 2022
 Share of mortgages (total)          37%   47%      39%      40%      33%
 Share of mortgages (apartments)     63%   67%      66%      70%      61%

 

Commenting on the 1Q 2022 operating results, Etalon Group CEO Gennadiy
Shcherbina said:

 

"The first three months of 2022 saw active demand for real estate, and Etalon
Group, as one of the largest market players, delivered good results. Our key
sales indicators in rouble terms grew at a double-digit pace. The value of
real estate sold by the Company in the period from January to March this year
increased by 21% year-on-year to RUB 19.7 billion. Cash collections reached
RUB 21.2 billion, 18% higher than in 1Q 2021.

 

"Sales trends, in monetary terms, were driven by consistent growth in the
average price per sqm, as well as the balance of locations and project classes
in our real estate portfolio. Sales also continue to be supported by the
state-backed mortgage programme - the share of mortgage sales in 1Q 2022
remained virtually unchanged year-on-year at 61%, despite the significant
increase in the Bank of Russia's key rate at the end of February.

 

"I would also note that in the early part of the year we continued to actively
expand our project portfolio in our key regions of operations and to enter new
regional markets. In February we acquired projects in Moscow, St Petersburg,
Ekaterinburg and Tyumen totalling 1.7 mln sqm. By expanding supply through the
acquisition of new projects and M&A deals, we will increase the number of
projects available to our customers this year already, which will give a
further boost to our operating performance."

Conference call and webcast

 

A conference call for investors and analysts will be held in May 2022. During
the call Etalon group management will present the operating results for 1Q
2022 as well as the financial results for FY 2021, and will provide an update
on strategy implementation. The presentation will be followed by a Q&A
session.

 

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 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 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. In
2021, the Company began a regional expansion programme and has already
launched new projects in Omsk, the Novosibirsk region as well as Ekaterinburg
and Tyumen. 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 commissioned 7.9 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 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 2021, Etalon Group's new contract sales totalled 446 ths sqm, or RUB 84.4
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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