21 Jul 2021 07:30
21 July 2021
Etalon Group 1H and 2Q 2021 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 six months and three months ended 30 June 2021, based on management accounts.
1H 2021 operating highlights
· New contract sales in monetary terms increased by 39% year-on-year reaching a record RUB 41.1 billion
· Cash collections rose by 30% year-on-year to RUB 40.9 billion
· Average price per sqm grew by 39% year-on-year to RUB 186.2 ths
· Average price per sqm of apartments was RUB 224.7 ths, up by 38% year-on-year
· Net corporate debt stood at RUB 626 million as of 30 June 2021
1H 2021 operating results
| 1H 2021 | 1H 2020 | Change, % |
New sales, sqm | 220,940 | 220,955 | - |
New sales, mln RUB | 41,147 | 29,522 | 39% |
Number of contracts | 4,286 | 3,882 | 10% |
Cash collections, mln RUB | 40,889 | 31,547 | 30% |
Deliveries, sqm | 3,028 | 177,359 | (98%) |
Regional breakdown
1H 2021 | 1H 2020 | Change, % | ||
Moscow metropolitan area | ||||
New sales, sqm | 131,117 | 105,938 | 24% | |
New sales, mln RUB | 27,882 | 15,887 | 76% | |
Number of contracts | 2,509 | 1,762 | 42% | |
Cash collections, mln RUB | 26,485 | 16,500 | 61% | |
Deliveries, sqm | 3,028 | 103,888 | (97%) | |
St Petersburg | ||||
New sales, sqm | 89,822 | 115,017 | (22%) | |
New sales, mln RUB | 13,265 | 13,635 | (3%) | |
Number of contracts | 1,777 | 2,120 | (16%) | |
Cash collections, mln RUB | 14,404 | 15,047 | (4%) | |
Deliveries, sqm | - | 73,472 | - | |
2Q 2021 operating highlights
· The number of new contracts grew by 47% to 2,297
· New contract sales amounted to 122.3 ths sqm and RUB 24.9 billion, up by 29% and 115%, respectively
· Cash collections increased by 64% to RUB 22.9 billion
· Average price per sqm was RUB 203.9 ths, up by 67% year-on-year
· Average price per sqm of apartments grew by 49% year-on-year to RUB 236.3 ths
2Q 2021 operating results
2Q 2021 | 2Q 2020 | Change, % | |
New sales, sqm | 122,270 | 94,984 | 29% |
New sales, mln RUB | 24,933 | 11,585 | 115% |
Number of contracts | 2,297 | 1,559 | 47% |
Cash collections, mln RUB | 22,853 | 13,942 | 64% |
Average price, RUB/sqm | 203,915 | 121,971 | 67% |
Average price (apartments), RUB/sqm | 236,342 | 159,063 | 49% |
Deliveries, sqm | - | 88,847 | - |
Regional breakdown
2Q 2021 | 2Q 2020 | Change, % | ||
Moscow metropolitan area | ||||
New sales, sqm | 79,352 | 46,767 | 70% | |
New sales, mln RUB | 18,431 | 5,746 | 221% | |
Number of contracts | 1,479 | 640 | 131% | |
Cash collections, mln RUB | 16,624 | 7,176 | 132% | |
Average price, RUB/sqm | 232,272 | 122,861 | 89% | |
Average price (apartments), RUB/sqm | 262,298 | 199,060 | 32% | |
Deliveries, sqm | - | 15,375 | - | |
St Petersburg | ||||
New sales, sqm | 42,918 | 48,218 | (11%) | |
New sales, mln RUB | 6,501 | 5,840 | 11% | |
Number of contracts | 818 | 919 | (11%) | |
Cash collections, mln RUB | 6,229 | 6,766 | (8%) | |
Average price, RUB/sqm | 151,486 | 121,108 | 25% | |
Average price (apartments), RUB/sqm | 184,132 | 135,539 | 36% | |
Deliveries, sqm | - | 73,472 | - | |
Quarterly operating performance
| 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | 2Q 2020 |
New sales, sqm | 122,270 | 98,670 | 166,788 | 150,451 | 94,984 |
New sales, mln RUB | 24,933 | 16,214 | 26,418 | 23,983 | 11,585 |
Number of contracts | 2,297 | 1,989 | 3,137 | 2,706 | 1,559 |
Cash collections, mln RUB | 22,853 | 18,036 | 29,203 | 21,235 | 13,942 |
Average price, RUB/sqm | 203,915 | 164,329 | 158,392 | 159,405 | 121,971 |
Average price (apartments), RUB/sqm | 236,342 | 208,095 | 191,853 | 186,327 | 159,063 |
Deliveries, sqm | - | 3,028 | 347,396 | 15,570 | 88,847 |
Mortgage contract developments
| 2Q 2021 | 1Q 2021 | 4Q 2020 | 3Q 2020 | 2Q 2020 |
Share of mortgages (total) | 47% | 37% | 44% | 47% | 44% |
Share of mortgages (apartments) | 67% | 63% | 65% | 64% | 63% |
Commenting on the 1H and 2Q 2021 operating results, Etalon Group CEO Gennadiy Shcherbina said:
"Etalon Group delivered strong results for the first half of 2021. The Company sold 221 ths sqm of real estate worth more than RUB 41 billion, up by 39% year-on-year in monetary terms. Cash collections also grew by a significant 30% year-on-year. The second quarter made an important contribution our half-year results, and it was a record-setting quarter in terms of sales in rouble terms.
"The diversification of our offer and rising average selling prices were major factors supporting sales. The average price for all NSA rose by 67% to RUB 204 thousand, which enabled us to more than double sales in rouble terms to RUB 24.9 billion. Our 2Q and 1H 2021 operating results were positively impacted by the launch of sales at a new stage of Nagatino-i-Land and our flagship project ZIL-Yug, with the starting price approaching RUB 300 thousand per sqm.
"As part of our plan to replenish the land bank, the Company recently acquired a new site in the Pushkinsky district of St Petersburg and plans to carry out its previously announced acquisitions programme in St Petersburg and Moscow by the end of the year. We expect that further diversification of the portfolio through new projects, coupled with the ongoing digitalisation and transformation of the business, will strengthen Etalon Group's position as a market leader, while also helping us to achieve our strategic growth plans."
Etalon Group CFO Ilya Kosolapov added:
"Since the beginning of the year, Etalon Group has improved its financial position considerably. Thanks to our work on our loan portfolio, we managed to reduce the average debt financing rate from 8.3% to 6.7%. Funds in escrow accounts reached RUB 38 billion, which enables us to receive project financing at a preferential rate. Without question, the most important event for the Company was our successful SPO, which raised over USD 150 million for the expansion of our project portfolio and business development.
"All these factors combined to decrease our debt substantially: net corporate debt fell from RUB 19.6 billion at the beginning of the year to RUB 626 million at the end of the first half of the year. The net corporate debt to EBITDA ratio reached nearly zero, which is well below the target stipulated by Etalon Group's Strategy. This strong financial position creates ample opportunity for us to successfully implement our plans to expand the business and achieve our strategic goals."
Conference call and webcast
The Company will host a conference call for investors and analysts today at 14:30 London time (16:30 Moscow; 09:30 New York).
On the call, the Etalon Group management team will present the Company's 1H and 2Q 2021 operating results, followed by a question and answer session for participants.
Webcast
https://edge.media-server.com/mmc/p/p6aabcj4
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: 4292945
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 TeamT: +44 20 8123 1328E: ir@etalongroup.com
EMSam VanDerlipT: +44 207 002 7859E: vanderlip@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. 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.
With our integrated business model, we are able to create added value for clients and shareholders at every stage of development: from land plot analysis and acquisition to the delivery of completed properties and provision of post-development housing services. Etalon Group employs over 4,600 people, and its nationwide sales and marketing network covers 59 Russian cities.
Etalon Group's total assets comprise 20 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 2.8 million sqm, as well as construction and maintenance division. Colliers International valued the Company's total assets at RUB 204 billion as of 31 December 2020.
In 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's revenue in 2020 amounted to RUB 78.7 billion, with EBITDA of RUB 12.6 billion.
Etalon Group's GDRs have traded on the Main Market of the London Stock Exchange since 20 April 2011 and on the Level 1 quotation list of Moscow Exchange since 31 January 2020 under the ticker ETLN.