27 Apr 2022 07:40
27 April 2022
Etalon Group Reports 1Q 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 first quarter ended 31 March 2022, based on management accounts.
1Q 2022 operating highlights
· New contract sales amounted to 90.4 ths sqm
· New contract sales in monetary terms rose by 21% year-on-year and totalled RUB 19.7 billion
· The number of new contracts amounted to 1,899
· Cash collections rose by 18% year-on-year to RUB 21.2 billion
· The average price per sqm increased by 32% year-on-year to RUB 217.6 ths
· The average price per sqm for residential real estate grew by 39% year-on-year to RUB 290.1 ths
1Q 2022 operating results
| 1Q 2021 | 1Q 2022 | Change, % |
New sales, sqm | 98,670 | 90,439 | (8%) |
New sales, RUB mln | 16,214 | 19,681 | 21% |
Number of contracts | 1,989 | 1,899 | (5%) |
Cash collections, RUB mln | 18,036 | 21,235 | 18% |
Average price, RUB/sqm | 164,329 | 217,611 | 32% |
Average price (apartments), RUB/sqm | 208,095 | 290,140 | 39% |
Deliveries, sqm | 3,028 | 175,693 | 58x |
Regional breakdown
1Q 2021 | 1Q 2022 | Change, % | ||
Moscow metropolitan area | ||||
New sales, sqm | 51,766 | 42,536 | (18%) | |
New sales, RUB mln | 9,451 | 11,793 | 25% | |
Number of contracts | 1,030 | 824 | (20%) | |
Cash collections, RUB mln | 9,861 | 11,609 | 18% | |
Average price, RUB/sqm | 182,565 | 277,236 | 52% | |
Average price (apartments), RUB/sqm | 230,041 | 340,263 | 48% | |
|
| |||
St Petersburg | ||||
New sales, sqm | 46,905 | 47,903 | 2% | |
New sales, RUB mln | 6,764 | 7,888 | 17% | |
Number of contracts | 959 | 1,075 | 12% | |
Cash collections, RUB mln | 8,175 | 9,627 | 18% | |
Average price, RUB/sqm | 144,203 | 164,666 | 14% | |
Average price (apartments), RUB/sqm | 184,154 | 236,526 | 28% | |
Quarterly operating performance
| 1Q 2021 | 2Q 2021 | 3Q 2021 | 4Q 2021 | 1Q 2022 |
New sales, sqm | 98,670 | 122,270 | 96,470 | 129,070 | 90,439 |
New sales, RUB mln | 16,214 | 24,933 | 18,390 | 24,851 | 19,681 |
Number of contracts | 1,989 | 2,297 | 1,869 | 2,405 | 1,899 |
Cash collections, RUB mln | 18,036 | 22,853 | 19,308 | 23,897 | 21,235 |
Average price, RUB/sqm | 164,329 | 203,915 | 190,633 | 192,538 | 217,611 |
Average price (apartments), RUB/sqm | 208,095 | 236,342 | 244,928 | 261,121 | 290,140 |
Mortgage contract developments
| 1Q 2021 | 2Q 2021 | 3Q 2021 | 4Q 2021 | 1Q 2022 | |
Share of mortgages (total) | 37% | 47% | 39% | 40% | 33% | |
Share of mortgages (apartments) | 63% | 67% | 66% | 70% | 61% | |
Commenting on the 1Q 2022 operating results, Etalon Group CEO Gennadiy Shcherbina said:
"The first three months of 2022 saw active demand for real estate, and Etalon Group, as one of the largest market players, delivered good results. Our key sales indicators in rouble terms grew at a double-digit pace. The value of real estate sold by the Company in the period from January to March this year increased by 21% year-on-year to RUB 19.7 billion. Cash collections reached RUB 21.2 billion, 18% higher than in 1Q 2021.
"Sales trends, in monetary terms, were driven by consistent growth in the average price per sqm, as well as the balance of locations and project classes in our real estate portfolio. Sales also continue to be supported by the state-backed mortgage programme - the share of mortgage sales in 1Q 2022 remained virtually unchanged year-on-year at 61%, despite the significant increase in the Bank of Russia's key rate at the end of February.
"I would also note that in the early part of the year we continued to actively expand our project portfolio in our key regions of operations and to enter new regional markets. In February we acquired projects in Moscow, St Petersburg, Ekaterinburg and Tyumen totalling 1.7 mln sqm. By expanding supply through the acquisition of new projects and M&A deals, we will increase the number of projects available to our customers this year already, which will give a further boost to our operating performance."
Conference call and webcast
A conference call for investors and analysts will be held in May 2022. During the call Etalon group management will present the operating results for 1Q 2022 as well as the financial results for FY 2021, and will provide an update on strategy implementation. The presentation will be followed by a Q&A session.
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.