REG - Etalon Group PLC - Etalon Group Reports FY 2021 IFRS Results

EtalonAnnouncement

12/04/2022 07:30

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RNS Number : 0370I  Etalon Group PLC  12 April 2022

 

12 April 2022

 

Etalon Group Reports FY 2021 IFRS Results

 

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
twelve months ended 31 December 2021.

 

FY 2021 financial highlights:

 

·    Revenue for 2021 increased by 11% year-on-year to RUB 87.1 billion.

·    Gross profit rose 27% year-on-year and reached RUB 27.8 billion.

·    Gross profit margin increased by 4 p.p. year-on-year to 32%.

·    Gross profit before purchase price allocation (PPA) for the period
increased by 20% to RUB 31.0 billion; pre-PPA gross profit margin increased by
3 p.p. year-on-year to 36%.

·    EBITDA increased by 42% year-on-year to RUB 17.9 billion; EBITDA
margin rose by 4.5 p.p. year-on-year to 21%.

·    Pre-PPA EBITDA amounted to RUB 21.1 billion, and pre-PPA EBITDA
margin increased by 3 p.p. year-on-year to 24%.

·    Net corporate debt as of 31 December 2021 was RUB 2.6 billion, and
the ratio of net corporate debt to pre-PPA EBITDA decreased to 0.1x.

·    Funds in escrow accounts reached RUB 59.8 billion.

·    Operating cash flow less interest paid and adjusted for escrow cash
collections reached RUB 18.8 billion for the period.

 

Commenting on the FY 2021 financial results, Etalon Group CEO Gennadiy
Shcherbina said:

"Just as we expected, Etalon Group's record sales for 2021 were reflected in
our strong financial results. The Company posted revenue of RUB 87.1 billion
and gross profit of 27.8 billion, the best results in the Group's history.

 

"Our efforts to improve cost-effectiveness and strictly control costs resulted
in an increase in profit margin. Etalon Group is one of the leaders in terms
of pre-PPA gross profit margin, reaching 36% for the Company as a whole and
38% in the residential development segment as of the end of the year. In
addition, we reduced the ratio of SG&A expenses to revenue to 12% and laid
a solid foundation for a further reduction to our target of 10% by 2024, even
amid the rapid expansion of our business. As a result of improved business
efficiency and strict control of overhead costs, we were able to improve our
EBITDA as well. In the last 12 months, pre-PPA EBITDA has increased by 28%,
and pre-PPA EBITDA margin has increased by 3 p.p. to 24%.

 

"Despite the rapidly changing macroeconomic context, we continue to develop
projects aimed at improving our operational efficiency and expanding our
business, including projects for the digitalisation of the value chain,
product standardisation and integration of state-of-the-art industrial housing
construction technologies. Thanks to the work we have already completed, we
will be able to achieve tangible results in the near future with the
introduction of our new standardised product, which offers a high degree of
consumer appeal at a lower construction cost.

 

"I am confident that the successful implementation of our strategic programme
in the context of dynamic market consolidation will open up new opportunities
for us to further strengthen the Company's position as an industry leader in
terms of efficiency and product quality, while also enabling us to
substantially expand our business through new markets and our updated offer."

 

Commenting on the financial results for 2021, Etalon Group's Chief Financial
Officer, Ilya Kosolapov, added:

"Thanks to the concerted efforts of the entire team over the past few years,
the Company has strengthened its positions considerably, including in
financial terms. Net corporate debt at the end of 2021 amounted to only RUB
2.6 billion, even despite record replenishment of the portfolio in 2021. At
the same time, the ratio of net corporate debt to pre-PPA EBITDA decreased to
0.1x. Funds in escrow accounts exceed project debt by 1.6x, which enables us
to take advantage of preferential project financing rates of 3%-4%, despite an
increase in the Bank of Russia's key rate. Moreover, even in the context of a
tight monetary policy, the terms of our current loan agreements and our solid
liquidity reserve enable us to keep the average interest rate on our debt at a
comfortable level and at the same time to finance key projects aimed at
strategic business development."

 

This and other recent 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

+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 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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