29 Jul 2022 09:04
29 July 2022
Etalon Group 1H and 2Q 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 six months and three months ended 30 June 2022, based on management accounts.
1H 2022 operating highlights
· New contract sales amounted to RUB 29.3 bln and 143.5 ths sqm
· Cash collections were at RUB 32.6 billion
· Average price per sqm grew by 10% year-on-year to RUB 204.3 ths
· Average price per sqm of apartments reached RUB 291.3 ths, up by 30% year-on-year
· Deliveries amounted to 235 ths sqm
· Net corporate debt stood at RUB 6.1 billion as of 30 June 2022
1H 2022 operating results
| 1H 2022 | 1H 2021 | Change, % | |||
New sales, sqm | 143,475 | 220,940 | (35%) | |||
New sales, RUB mln | 29,319 | 41,147 | (29%) | |||
Number of contracts | 3,115 | 4,286 | (27%) | |||
Cash collections, RUB mln | 32,637 | 40,889 | (20%) | |||
Average price, RUB /sqm | 204,348 | 186,236 | 10% | |||
Average price (apartments), RUB/sqm | 291,332 | 224,659 | 30% | |||
Regional breakdown
| 1H 2022 | 1H 2021 | Change, % | |
Moscow metropolitan area | ||||
New sales, sqm | 67,650 | 131,117 | (48%) | |
New sales, RUB mln | 17,513 | 27,882 | (37%) | |
Number of contracts | 1,462 | 2,509 | (42%) | |
Cash collections, RUB mln | 18,408 | 26,485 | (30%) | |
Average price, RUB /sqm | 258,877 | 212,647 | 22% | |
Average price (apartments), RUB/sqm | 348,616 | 250,839 | 39% | |
St Petersburg | ||||
New sales, sqm | 71,316 | 89,822 | (21%) | |
New sales, RUB mln | 11,423 | 13,265 | (14%) | |
Number of contracts | 1,535 | 1,777 | (14%) | |
Cash collections, RUB mln | 13,930 | 14,404 | (3%) | |
Average price, RUB/sqm | 160,172 | 147,683 | 8% | |
Average price (apartments), RUB/sqm | 243,109 | 184,143 | 32% | |
Other regions | ||||
New sales, sqm | 4,509 | - | ||
New sales, RUB mln | 383 | - | ||
Number of contracts | 118 | - | ||
Cash collections, RUB mln | 299 | - | ||
Average price, RUB/sqm | 84,945 | - | ||
Average price (apartments), RUB/sqm | 109,448 | - | ||
2Q 2022 operating highlights
· The number of new contracts amounted to 1,216
· New contract sales were at 53 ths sqm and RUB 9.6 billion
· Cash collections amounted to RUB 11.4 billion
· Average price per sqm was RUB 181.7 ths
· Average price per sqm of apartments grew by 24% to RUB 294.1 ths
2Q 2022 operating results
| 2Q 2022 | 2Q 2021 | Change, % |
New sales, sqm | 53,036 | 122,270 | (57%) |
New sales, RUB mln | 9,638 | 24,933 | (61%) |
Number of contracts | 1,216 | 2,297 | (47%) |
Cash collections, RUB mln | 11,402 | 22,853 | (50%) |
Average price, RUB/sqm | 181,732 | 203,915 | (11%) |
Average price (apartments), RUB/sqm | 294,096 | 236,342 | 24% |
Regional breakdown
| 2Q 2022 | 2Q 2021 | Change, % | |||
Moscow metropolitan area | ||||||
New sales, sqm | 25,114 | 79,352 | (68%) | |||
New sales, RUB mln | 5,720 | 18,431 | (69%) | |||
Number of contracts | 638 | 1,479 | (57%) | |||
Cash collections, RUB mln | 6,800 | 16,624 | (59%) | |||
Average price, RUB/sqm | 227,781 | 232,272 | (2%) | |||
Average price (apartments), RUB/sqm | 369,908 | 262,298 | 41% | |||
St Petersburg | ||||||
New sales, sqm | 23,413 | 42,918 | (45%) | |||
New sales, RUB mln | 3,535 | 6,501 | (46%) | |||
Number of contracts | 460 | 818 | (44%) | |||
Cash collections, RUB mln | 4,303 | 6,229 | (31%) | |||
Average price, RUB/sqm | 150,977 | 151,486 | - | |||
Average price (apartments), RUB/sqm | 261,111 | 184,132 | 42% | |||
Other regions | ||||||
New sales, sqm | 4,509 | - | ||||
New sales, RUB mln | 383 | - | ||||
Number of contracts | 118 | - | ||||
Cash collections, RUB mln | 299 | - | ||||
Average price, RUB/sqm | 84,945 | - | ||||
Average price (apartments), RUB/sqm | 109,448 | - | ||||
Quarterly operating performance
| 2Q 2022 | 1Q 2022 | 4Q 2021 | 3Q 2021 | 2Q 2021 |
New sales, sqm | 53,036 | 90,439 | 129,070 | 96,470 | 122,270 |
New sales, RUB mln | 9,638 | 19,681 | 24,851 | 18,390 | 24,933 |
Number of contracts | 1,216 | 1,899 | 2,405 | 1,869 | 2,297 |
Cash collections, RUB mln | 11,402 | 21,235 | 23,897 | 19,308 | 22,853 |
Average price, RUB/sqm | 181,732 | 217,611 | 192,538 | 190,633 | 203,915 |
Average price (apartments), RUB/sqm | 294,096 | 290,140 | 261,121 | 244,928 | 236,342 |
Mortgage contract developments
| 2Q 2022 | 1Q 2022 | 4Q 2021 | 3Q 2021 | 2Q 2021 |
Share of mortgages (total) | 25% | 33% | 40% | 39% | 47% |
Share of mortgages (apartments) | 55% | 61% | 70% | 66% | 67% |
Commenting on the 1H and 2Q 2022 operating results, Etalon Group CEO Gennadiy Shcherbina said:
"In 1H 2022, Etalon Group sold 143.5 ths sqm of real estate worth RUB 29.3 billion. Cash collections from new sales amounted to RUB 32.6 billion. Despite our strong performance at the beginning of the year, sales slowed in 2Q amid rising rates and market uncertainty, as well as the limited supply of release estate.
"In order to bolster our offer, by the end of 2Q 2022 we put 413 ths sqm on sale at Etalon Group projects and at residential complexes from the YIT Russia portfolio we purchased in May in an M&A deal. In addition to a portfolio of 0.6 mln sqm in five regions of Russia, the deal included a library of design solutions, service companies and the country's largest IT platform for managing apartment buildings. In the context of the development of our existing land bank, we plan to put about another 700 ths sqm on the market before the end of the year, which, together with a reduction in the rate on preferential mortgages, will ensure a strong improvement in our results and offset the decrease in sales 2Q 2022.
"The company intends to continue replenishing its project portfolio in its key regions and in new markets, as well as to take further steps to improve business efficiency in order to make our product available to a larger number of consumers."
Etalon Group CFO Ilya Kosolapov added:
"Despite the robust expansion of our portfolio and the M&A deal in 1H 2022, Etalon Group maintains a low level of debt. Net corporate debt is only RUB 6.1 billion; at the project level, our net cash position has increased to RUB 25.8 billion.
"Thanks to our stable financial situation and over RUB 116 billion in cash and cash equivalents, including in escrow, we are able to continue moving forward with our ambitious strategic programme even in a turbulent market. In addition, the full integration of YIT Russia will help bolster the operational efficiency of the combined company. Operational and financial synergies will enable us to get closer to achieving our business's key strategic goals."
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
E: 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.