REG - Etalon Group PLC - Etalon Reports Record 4Q and FY 2020 Op. Results

EtalonAnnouncement

19/01/2021 07:30

RNS Number : 0966M
  
Etalon Group PLC
  
19 January 2021
  
 

19 January 2021
 
Etalon Group Reports Record 4Q and FY 2020 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 twelve months and three months ended 31 December 2020, based on management accounts. 
 
FY 2020 operating highlights
 
·    The number of new contracts amounted to 9,725
·    New contract sales amounted to 538 ths sqm
·    New contract sales in monetary terms increased by 3% year-on-year reaching an all-time high of RUB 79.9 billion
·    Cash collections rose by 5% year-on-year to RUB 82.0 billion
·    Average price per sqm was RUB 148.5 ths, up by 21% year-on-year
·    Average price per sqm of apartments grew by 20% year-on-year to RUB 178.7 ths
 
FY 2020 operating results
 



 


2020


2019


Change, %




New sales, sqm


538,194


630,399


(15%)




New sales, mln RUB


79,922


77,627


3%




Number of contracts


9,725


12,040


(19%)




Cash collections, mln RUB


81,985  


77,713  


5%




Average price, RUB/sqm


148,501


123,140


21%




Average price (apartments), RUB/sqm


178,685


148,729


20%




Deliveries, sqm


540,325


621,867


(13%)



 
Regional breakdown
 







2020


2019


Change, %




Moscow metropolitan area




New sales, sqm


272,421


302,560


(10%)




New sales, mln RUB


46,743


43,180


8%




Number of contracts


4,938


5,619


(12%)




Cash collections, mln RUB


48,673


45,656


7%




Average price, RUB/sqm


171,585


142,717


20%




Average price (apartments), RUB/sqm


213,274


169,154


26%




Deliveries, sqm


193,425


353,129


(45%)




St Petersburg




New sales, sqm


265,773


327,839


(19%)




New sales, mln RUB


33,179


34,447


(4%)




Number of contracts


4,787


6,421


(25%)




Cash collections, mln RUB


33,312


32,057


4%




Average price, RUB/sqm


124,839


105,073


19%




Average price (apartments), RUB/sqm


145,989


129,078


13%




Deliveries, sqm


346,901


268,738


29%










 
4Q 2020 operating highlights
 
·    The number of new contracts reached 3,137
·    New contract sales amounted to 166.8 ths sqm and RUB 26.4 billion, up by 21% year-on-year in monetary terms 
·    Cash collections increased by 55% year-on-year to RUB 29.2 billion
·    Average price per sqm rose by 25% year-on-year to RUB 158.4 ths 
·    Average price per sqm of apartments grew by 23% year-on-year to RUB 191.9 ths
·    Average down payment reached a record level of 93%
 
4Q 2020 operating results
 



 


4Q 2020


4Q 2019


Change, %




New sales, sqm


166,788


171,530


(3%)




New sales, mln RUB


26,418


21,795


21%




Number of contracts


3,137


2,931


7%




Cash collections, mln RUB


29,203


18,791


55%




Average price, RUB/sqm


158,392


127,060


25%




Average price (apartments), RUB/sqm


191,853


156,271


23%




Deliveries, sqm


347,396


308,294


13%



 
Quarterly operating performance
 



 


4Q 2020


3Q 2020


2Q 2020


1Q 2020


4Q 2019




New sales, sqm


166,788


150,451


94,984


125,971


171,530




New sales, mln RUB


26,418


23,983


11,585


17,936


21,795




Number of contracts


3,137


2,706


1,559


2,323


2,931




Cash collections, mln RUB


29,203


21,235


13,942


17,604


18,791




Average price, RUB/sqm


158,392


159,405


121,971


142,384


127,060




Average price (apartments), RUB/sqm


191,853


186,327


159,063


165,481


156,271




Deliveries, sqm


347,396


15,570


88,847


88,513


308,294



 
Regional breakdown
 







4Q 2020


4Q 2019


Change, %




Moscow metropolitan area




New sales, sqm


86,470


70,084


23%




New sales, mln RUB


15,315


10,651


44%




Number of contracts


1,715


1,167


47%




Cash collections, mln RUB


18,436


9,888


86%




Average price, RUB/sqm


177,110


151,971


17%




Average price (apartments), RUB/sqm


221,118


196,420


13%




Deliveries, sqm


73,967 


102,482 


(28%)




St Petersburg




New sales, sqm


80,318


101,445


(21%)




New sales, mln RUB


11,103


11,144


(0%)




Number of contracts


1,422


1,764


(19%)




Cash collections, mln RUB


10,767


8,903


21%




Average price, RUB/sqm


138,241


109,850


26%




Average price (apartments), RUB/sqm


162,723


130,579


25%




Deliveries, sqm


273,429


205,812


33%










 
Mortgage contract developments
 



 


4Q 2020


3Q 2020


2Q 2020


1Q 2020


4Q 2019




Share of mortgages (total)


44%


47%


44%


36%


35%




Share of mortgages (apartments)


65%


64%


63%


52%


52%












 
Commenting on the FY 2020 operating results, Etalon Group CEO Gennadiy Shcherbina said:
 
"I am pleased that in FY 2020, Etalon Group has once again delivered record operating results, which exceeded even our optimistic forecast. The Company sold 538 ths sqm of NSA worth RUB 80 billion during the year. Cash collections reached RUB 82 billion, which is the highest level in Etalon Group's history.
 
"Sales in the fourth quarter made a significant contribution to our full-year results, thanks to continued sustainable demand for residential real estate and Etalon Group's diverse portfolio of projects. Key performance metrics in the final quarter of 2020 saw double-digit year-on-year growth. New contract sales in monetary terms increased by 21% year-on-year to RUB 26.4 billion. Achievement of such strong results was made possible by the development of new sales technologies like dynamic pricing, which enabled us to respond more precisely and flexibly to market trends and increase the average price for apartments to RUB 192 ths per sqm. Mortgage rates remaining at historic lows and the higher share of business class projects in our portfolio resulted in the average down payment rising to a record level of 93%. The combination of these factors made possible significant conversion of new contract sales into cash collections, which for the first time in Etalon Group's history exceeded RUB 29 billion in one quarter, growing by 55% year-on-year.
 
"The strong performance in 2020 has laid a solid foundation for future growth of our business and achievement of the strategic goals set out in the fall of last year. Our record operating results mean we can count on solid revenue performance for FY 2020, despite a decline in 1H 2020 that was the result of COVID-19 restrictions. At the same time, strong pricing dynamics give us confidence in a continued rapid recovery in profitability. 
 
"We are convinced that continued implementation of plans announced last year related to digital transformation, product improvement and introduction of new construction technologies will enable Etalon Group to achieve even stronger operating and financial results, which will increase value of the Company for its shareholders and all stakeholders."
 
Commenting on the FY 2020 operating results, Etalon Group CFO Ilya Kosolapov added:
 
"Solid cash collections backed by strong sales performance had a positive impact on Etalon Group's cash flow generation. We had RUB 25.9 billion of cash and cash equivalents at the end of 2020, which brought net corporate debt down to RUB 19.6 billion. This means that our net corporate debt to LTM pre-PPA EBITDA ratio was a comfortable 1.8x. In addition, we hold sufficient funds in escrow accounts to enable us to raise project financing at lower rates. Etalon Group's robust financial position and cash flow dynamics mean that we can confidently adhere to our dividend policy, which calls for significant annual dividend payments of at least RUB 12 per GDR."
 
Conference call and webcast
 
Etalon Group will host a conference call for investors and analysts today at 14:00 London time (17:00 Moscow; 09:00 New York).
 
On the call, the Etalon Group management team will present the FY and 4Q 2020 operating results, followed by a question and answer session for participants.
 
Webcast
https://edge.media-server.com/mmc/p/9wghpz7w
 
Dial-in numbers:
+44 2071 928338 - Standard International
+44 844 4819 752 - London
+7 495 249 9851 - Moscow
+1 646 741 3167 - New York
 
Conference ID Code: 9775055
This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/ 
 
Contact Information
 
Etalon Group
IR Team
T: +44 (0) 20 8123 1328
E: ir@etalongroup.com
 
EM
Sam VanDerlip
T.: +44 207 002 7859
E: vanderlip@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. With a more than 30-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 7.5 million sqm of real estate.
The Company is vertically integrated, which helps it to control costs, quality and timing, as well as maintain best-in-class profitability. Etalon Group employs over 5,000 people, and its nationwide sales and marketing network covers 57 Russian cities.
In 2019, Etalon Group acquired and consolidated 100% in Leader-Invest, one of Moscow's largest residential developers by size of land bank and number of projects currently available for sale.
Etalon Group's total assets comprise 33 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 3.3 million sqm, as well as a construction and maintenance division. Colliers International valued the Company's total assets at RUB 188 billion as of 31 December 2019.
For the year ended 31 December 2020, Etalon Group's new contract sales totalled 538 ths sqm, or RUB 79.9 billion. Deliveries in 2020 amounted to 540 ths sqm.
The Company recorded a record revenue of RUB 84.3 billion and EBITDA of RUB 8.9 billion for the year ended 31 December 2019.
Etalon Group's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 List of Moscow Exchange since 31 January 2020 under the ticker ETLN.
 

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