20 Jul 2015 10:02
PIK GROUP 2Q 2015 Trading Update
MOSCOW, July 20, 2015 - PIK Group (LSE: PIK) released today its trading update for the six months ended June 30, 2015 (2Q2015). The operational and financial data are based on management assessment only and have not been reviewed by external auditors.
1H2015 key operational highlights:
· Total cash collections increased by 10.0% to RUB 30.0 billion (1H2014: RUB27.3 billion).
- Cash collections from sale of real estate to individuals increased by 6.8% to RUB 22.9 billion (1H2014: RUB 21.5 billion).
- Cash collections from construction services and others increased by 24.2% to RUB 7.0 billion (1H2014: RUB 5.6 billion)
· New sales contracts to customers increased by 4.6% to 228 th. sqm.(1H2014: 218 th. sq. meters).
· In 1H2015, PIK launched 17 new projects compared to 26 new projects in 1H2014. New sellable area in the buildings put on sale decreased by 12.3% to 308 th. sq. meters (1H2014: 351 th. sq. meters).
· Share of mortgage backed sales reached 39.4% in 2Q2015, growing back to the level of the early 2014 due to federal mortgage support program.
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Table 1 - Cash collections summary
(in RUB MM) | 2Q2014 | 2Q2015 | Change, % | 1H2014 | 1H2015 | Change, % | |||
| |||||||||
TOTAL GROSS CASH COLLECTIONS (1) | 11,121 | 12,840 | 15.5% | 27,254 | 29,974 | 10.0% | |||
Cash collections from sale of real estate(1) | 8,064 | 9,553 | 18.5% | 21,657 | 23,020 | 6.3% | |||
including: | |||||||||
- Cash collections from retail real estate sales | 7,993 | 9,525 | 19.2% | 21,484 | 22,946 | 6.8% | |||
- Cash collections from wholesale real estate sales | 3 | 0 | (100%) | 83 | 0 | (100%) | |||
Cash collections from construction services activities and others | 3,057 | 3,287 | 7.5% | 5,597 | 6,954 | 24.2% | |||
Note: (1) Including offsets with suppliers
Source: Management accounts
Table 2 - New sales contracts to customers
in '000 sq. meters | 2Q 2014 | 2Q 2015 | Change, % | 1H2014 | 1H2015 | Change, % | ||
New sales contracts to customers (1) | 81 | 118 | 45.7% | 218 | 228 | 4.6% | ||
including: | ||||||||
New retail sales contracts to customers | 81 | 118 | 45.7% | 216 | 228 | 5.6% | ||
Value of retail contracts for apartments and ground floors(in RUB mn) | 7,134 | 9,977 | 40.0% | 19,265 | 19,954 | 3.6% | ||
Note: including contracted retail and wholesales
Source: Management accounts
Table 3 - New sales contracts to customers by region
in '000 sq. meters | 2Q2014 | 2Q2015 | Change, % | 1H2014 | 1H2015 | Change, % |
Moscow | 15 | 33 | 120% | 51 | 56 | 7.8% |
Moscow region | 43 | 63 | 46.5% | 113 | 130 | 15.0% |
Other regions | 23 | 22 | (4.3%) | 52 | 42 | (19.2%) |
Total | 81 | 118 | 45.7% | 218 | 228 | 4.6% |
Note: including contracted retail and wholesales
Source: Management accounts
Table 4 - Pre-sales launches summary table
No. of buildings | 1H2014 | 1H2015 | Change | |
Number of buildings launched for sale | 26 | 17 | (9) | |
New sellable area, 000' sqm | 351 | 308 | (12.3%) |
Source: Management accounts
Table 5 - Share of mortgage backed retail sales
In % | 1Q2014 | 4Q2014 | 1Q2015 | 2Q2015 | |
Share of mortgage backed transactions | 37.2% | 32.4% | 25.3% | 39.4% |
Note: Based on monthly averaged data from retail sales, calculated using apartments only
Source: Management accounts
Table 6 - Average PIK's net selling price dynamics
(in '000 RUB per sq. meter) | FY2013 | FY2014 | 1H2015 | Change, % |
Moscow (1) | 135.0 | 125.0 | 121.6 | (2.7%) |
Moscow region | 81.0 | 85.6 | 86.5 | 1.1% |
Other regions | 47.8 | 49.3 | 46.6 | (5.5%) |
Note: PIK is preselling properties at different stages of construction. Selling prices vary depending on geographic location, size, floor location, stage of construction. Accordingly, average prices per square meters represent blended average price calculations of the above. Calculated on the basis of retail contracts on completed project and projects in active construction stage. Before 21 January 2014 the average price calculation methodology included only PIK's projects in active construction stage.
(1) Includes New Moscow region. The price decrease in 2014 is due to larger volumes of sales in the New Moscow region which has lower prices. The price decrease in 1H2015 is due to change in the product mix.
Source: Management accounts
Enquiries:
PIK Group
Investors | Media |
Polina Kurshetsova | Natalia Mikhna |
Tel: +7 495 505 97 33 ext. 1157 / 1315 | Tel: +7 495 505 97 33 ext. 1403 |
E-mail: ir@pik.ru | E-mail: pressa@pik.ru |
Some of the information in this press release may contain guidance, projections or other forward-looking statements regarding future events or the future financial performance of PIK Group. You can identify forward-looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," or the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK Group does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK Group's projections, guidance or forward-looking statements, including, among others, general economic and market conditions, PIK Group's competitive environment, risks associated with operating in Russia, rapid market change, and other factors specifically related to PIK Group and its operations.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of PIK Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of PIK Group.