REG - Etalon Group PLC - Record 2023 sales: regional expansion shows growth

EtalonAnnouncement

16/01/2024 07:16

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RNS Number : 8293Z  Etalon Group PLC  16 January 2024

 

16 January 2024

 

Record Sales in 2023: Regional Expansion Underpins Strong Double-digit Growth

 

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 2023, based on management accounts.

FY 2023 operating highlights

 

·    New contract sales increased by 87% year-on-year to 547.2 ths sqm

·    The value of new contract sales increased by 80% year-on-year to RUB
106 billion

·    Sales at projects in regional markets increased 274% year-on-year to
188.4 ths sqm, while the value of new contract sales in the same markets
increased 339% to RUB 24 billion

·    Projects in regional markets accounted for 34% of sales in terms of
floor space and 23% of sales in monetary terms

·    Cash collections increased by 36% to RUB 82 billion

·    The average price per sqm was RUB 192.9 thousand, and the average
price per sqm of residential property was RUB 232.7 thousand

 

FY 2023 operating results

                                      2022     2023     Change, %
 New sales, sqm                       292,396  547,235  87%
 Moscow and the Moscow region         121,371  210,652  74%
 St Petersburg                        120,619  148,232  23%
 Other regions                        50,405   188,350  274%
 New sales, RUB mln                   58,652   105,564  80%
 Moscow and the Moscow region         32,296   58,068   80%
 St Petersburg                        20,944   23,739   13%
 Other regions                        5,412    23,756   339%
 Number of contracts                  6,457    11,689   81%
 Moscow and the Moscow region         2,645    4,269    61%
 St Petersburg                        2,609    3,456    32%
 Other regions                        1,203    3,964    230%
 Cash collections, RUB mln            60,386   82,108   36%
 Moscow and the Moscow region         31,501   41,954   33%
 St Petersburg                        24,206   20,423   (16%)
 Other regions                        4,679    19,731   322%
 Average price, RUB/sqm               200,591  192,904  (4%)
 Moscow and the Moscow region         266,096  275,659  4%
 St Petersburg                        173,634  160,149  (8%)
 Other regions                        107,369  126,129  17%
 Average price (apartments), RUB/sqm  261,721  232,675  (11%)
 Moscow and the Moscow region         344,131  347,803  1%
 St Petersburg                        250,674  245,578  (2%)
 Other regions                        119,428  129,574  8%

 

4Q 2023 operating highlights

·    New contract sales increased 152% year-on-year to RUB 206.6 ths sqm

·    In monetary terms, new contract sales increased 152% to RUB 40
billion

·    Sales at projects in regional markets increased 161% to 72.7 sqm; the
value of new contract sales in the same markets rose 211% to RUB 10 billion

·    Projects in regional markets accounted for 35% of sales in terms of
floor space and 25% of sales in monetary terms

·    Cash collections increased by 76% to RUB 29 billion

·    The average price per sqm was RUB 195.5 thousand, while the average
price per sqm of residential property increased by 5% to RUB 250 thousand

4Q 2023 operating results

 

                                      4Q 2022  4Q 2023  Change, %
 New sales, sqm                       81,934   206,617  152%
 Moscow and the Moscow region         28,493   79,231   178%
 St Petersburg                        25,534   54,667   114%
 Other regions                        27,907   72,720   161%
 New sales, RUB mln                   16,004   40,392   152%
 Moscow and the Moscow region         7,683    22,411   192%
 St Petersburg                        5,039    7,761    54%
 Other regions                        3,282    10,221   211%
 Number of contracts                  1,770    4,526    156%
 Moscow and the Moscow region         618       1,607   160%
 St Petersburg                        533      1,396    162%
 Other regions                        619      1,523    146%
 Cash collections, RUB mln            16,579   29,214   76%
 Moscow and the Moscow region         7,687    15,068   96%
 St Petersburg                        5,921    6,305    6%
 Other regions                        2,970    7,841    164%
 Average price, RUB/sqm               195,324  195,493  0%
 Moscow and the Moscow region         269,655  282,856  5%
 St Petersburg                        197,335  141,961  (28%)
 Other regions                        117,593  140,550  20%
 Average price (apartments), RUB/sqm  229,297  240,952  5%
 Moscow and the Moscow region         328,379  361,370  10%
 St Petersburg                        261,911  241,931  (8%)
 Other regions                        123,573  143,608  16%

 

Quarterly operating performance

                                      4Q 2022  1Q 2023  2Q 2023  3Q 2023  4Q 2023
 New sales, sqm                       81,934   73,633   110,635  156,295  206,617
 New sales, RUB mln                   16,004   13,436   20,566   31,169   40,392
 Number of contracts                  1,770    1,555    2,265    3,343    4,526
 Cash collections, RUB mln            16,579   12,001   16,209   24,684   29,214
 Average price, RUB/sqm               195,324  182,478  185,892  199,424  195,493
 Average price (apartments), RUB/sqm  229,297  219,541  223,389  234,170  240,952
 Share of mortgages (total)           58%      47%      50%      49%      51%
 Share of mortgages (apartments)      79%      70%      71%      72%      77%

 

Commenting on the Company's operating results in 4Q and FY 2023, Etalon Group
CEO Gennadiy Shcherbina said:

 

"Last year was the best year in the Company's history in terms of sales. New
contract sales for the year amounted to RUB 106 billion, which was an 80%
increase from 2022 and a 25% increase from 2021. Sales were especially robust
from October to December: the last quarter was the strongest in our history
when it comes to sales, both in terms of floor space and in monetary terms.

 

"The main reason for our rapid growth in 2023 was the expansion of our
regional operations. We put new space on the market at nine regional projects
during the year, resulting in a nearly fourfold increase in sales in regional
markets, accounting for 35% of our total property sales, while prices rose 16%
by the end of the year.

 

"Despite an increase in the key rate, we see excellent potential for further
growth this year: an increase in market mortgage rates will encourage buyers
to purchase property in the primary market, and, with the continuation of
preferential mortgage programmes in regional markets, we will be able to count
on stable demand in those cities where we are increasing our supply. Further
expansion into new regions will help us reach more customers. At the same
time, there is unmet demand for quality affordable housing in regional
markets, and we believe that our experience and competencies when it comes to
building a project portfolio with extensive regional diversification gives us
an advantage over players that are new to these markets."

 

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

 

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 9.0 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 more than 5,800 people, and its nationwide
sales network covers 35 regions of Russia.

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 2023, Etalon Group's new contract sales totalled 547 ths sqm, or RUB 105.6
billion.

The Company's revenue in 2022 amounted to RUB 80.6 billion, with EBITDA of RUB
16.5 billion.

Etalon Group's GDRs were listed on the Main Market of the London Stock
Exchange on 20 April 2011 and have been included in the Level 1 quotation list
of Moscow Exchange since 31 January 2020 under the ticker ETLN. In July 2023,
the Company completed the process of changing the basis for its listing on
Moscow Exchange.

 

 

 

 

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