11 Oct 2023 07:30
11 October 2023
Record 3Q 2023 Results: Fourfold Increase in Regional Sales and Double-Digit Business 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 three and nine months ended 30 September 2023, based on the Company's management accounts.
9M 2023 operating highlights:
· New contract sales were up by 62% year-on-year to 340.6 ths sqm
· The total value of new contracts increased by 53% year-on-year to RUB 65.2 billion
· Sales in regional projects increased by a factor of 5.1 year-on-year to 115.6 ths sqm, and the total value of regional contracts increased by a factor of 6.4 to RUB 13.5 billion
· The share of regional projects among overall sales was 34% in terms of floor space and 21% in rouble terms
· Cash collections increased by 21% to RUB 52.9 billion
· Average price per sqm was RUB 191.4 thousand, and the average price per sqm of residential property was RUB 227.6 thousand
9M 2023 operating results:
| 9M 2022 | 9M 2023 | Change, % |
New contract sales, sqm | 210,461 | 340,563 | 62% |
Moscow and the Moscow region | 92,878 | 131,368 | 41% |
St Petersburg | 95,085 | 93,565 | (2%) |
Other regions | 22,498 | 115,631 | 414% |
New contract sales, RUB mln | 42,648 | 65,172 | 53% |
Moscow and the Moscow region | 24,613 | 35,657 | 45% |
St Petersburg | 15,905 | 15,979 | 0% |
Other regions | 2,130 | 13,536 | 535% |
Number of contracts | 4,687 | 7,163 | 53% |
Moscow and the Moscow region | 2,027 | 2,662 | 31% |
St Petersburg | 2,076 | 2,060 | (1%) |
Other regions | 584 | 2,441 | 318% |
Cash collections, RUB mln | 43,807 | 52,894 | 21% |
Moscow and the Moscow region | 23,814 | 26,886 | 13% |
St Petersburg | 18,284 | 14,118 | (23%) |
Other regions | 1,709 | 11,890 | 596% |
Average price, RUB/sqm | 202,641 | 191,364 | (6%) |
Moscow and the Moscow region | 265,004 | 271,432 | 2% |
St Petersburg | 167,270 | 170,776 | 2% |
Other regions | 94,686 | 117,059 | 24% |
Average price (apartments), RUB/sqm | 276,864 | 227,565 | (18%) |
Moscow and the Moscow region | 349,523 | 339,524 | (3%) |
St Petersburg | 247,280 | 247,390 | 0% |
Other regions | 113,472 | 120,657 | 6% |
3Q 2023 operating highlights:
· New contract sales were up by 133% year-on-year to 156.3 ths sqm
· Sales in monetary terms increased by 134% to a record RUB 31.2 billion
· Sales in regional projects increased by a factor of 3.1 to 55 ths sqm, and the total value of regional contracts increased by a factor of 3.7 to RUB 6.5 billion
· The share of regional projects among overall sales was 35% in terms of floor space and 21% in rouble terms
· Cash collections increased by 121% to RUB 24.7 billion
· Average price per sqm was RUB 199.4 thousand, and the average price per sqm of residential property was RUB 234.2 thousand
3Q 2023 operating results:
| 3Q 2022 | 3Q 2023 | Change, % |
New contract sales, sqm | 66,986 | 156,295 | 133% |
Moscow and the Moscow region | 25,228 | 60,859 | 141% |
St Petersburg | 23,769 | 40,464 | 70% |
Other regions | 17,989 | 54,973 | 206% |
New contract sales, RUB mln | 13,329 | 31,169 | 134% |
Moscow and the Moscow region | 7,100 | 18,168 | 156% |
St Petersburg | 4,482 | 6,468 | 44% |
Other regions | 1,747 | 6,532 | 274% |
Number of contracts | 1,572 | 3,343 | 113% |
Moscow and the Moscow region | 565 | 1,256 | 122% |
St Petersburg | 541 | 947 | 75% |
Other regions | 466 | 1,140 | 145% |
Cash collections, RUB mln | 11,170 | 24,684 | 121% |
Moscow and the Moscow region | 5,405 | 13,206 | 144% |
St Petersburg | 4,354 | 6,065 | 39% |
Other regions | 1,410 | 5,413 | 284% |
Average price, RUB/sqm | 198,985 | 199,424 | 0% |
Moscow and the Moscow region | 281,433 | 298,534 | 6% |
St Petersburg | 188,567 | 159,855 | (15%) |
Other regions | 97,128 | 118,830 | 22% |
Average price (apartments), RUB/sqm | 250,326 | 234,170 | (6%) |
Moscow and the Moscow region | 351,744 | 354,009 | 1% |
St Petersburg | 258,167 | 251,681 | (3%) |
Other regions | 114,362 | 121,824 | 7% |
Quarterly operating results:
| 3Q 2022 | 4Q 2022 | 1Q 2023 | 2Q 2023 | 3Q 2023 |
New contract sales, sqm | 66,986 | 81,934 | 73,633 | 110,635 | 156,295 |
New contract sales, RUB mln | 13,329 | 16,004 | 13,436 | 20,566 | 31,169 |
Number of contracts | 1,572 | 1,770 | 1,555 | 2,265 | 3,343 |
Cash collections, RUB mln | 11,170 | 16,579 | 12,001 | 16,209 | 24,684 |
Average price, RUB/sqm | 198,985 | 195,324 | 182,478 | 185,892 | 199,424 |
Average price (apartments), RUB/sqm | 250,326 | 229,297 | 219,541 | 223,389 | 234,170 |
Share of mortgages (total) | 37% | 58% | 47% | 50% | 49% |
Share of mortgages (apartments) | 55% | 79% | 70% | 71% | 72% |
Commenting on the Company's 3Q and 9M 2023 operating results, Etalon Group CEO Gennadiy Shcherbina said:
"Over the first nine months of 2023 the Company achieved double-digit growth in operating performance, as set out in the strategy. What's more, the last quarter was one of the strongest in Etalon Group's history. From July to September we sold more than 156 ths sqm, with a record RUB 31.2 billion in new contract sales. Cash collections more than doubled year-on-year to RUB 24.7 billion.
The main driver of growth was regional sales. In the third quarter we increased property sales in regional projects threefold year-on-year, with the value of contracts in the regions increasing almost fourfold. The regions now account for around 35% of all sales in terms of square metres, and the Green River project in Omsk and the Solnechniy project in Ekaterinburg are among the sales leaders in our portfolio. At the same time, thanks to stable demand, the upward trend in the average price of apartments in the regions remains at 7% year-on-year.
We plan to continue actively working on scaling up the business. Strengthening our presence in promising regional markets with stable demand will enable the Company to achieve market-beating growth and multiply its sales and revenue in the coming years."
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 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 8.9 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 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 2022, Etalon Group's new contract sales totalled 292 ths sqm, or RUB 58.7 billion, not including accumulated new contract sales at YIT Russia as of its acquisition.
The Company's revenue in 2022 amounted to RUB 80.6 billion, with EBITDA of RUB 16.5 billion.
Etalon Group's GDRs have been listed on the Main Market of the London Stock Exchange since 20 April 2011 and 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.