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RNS Number : 8293Z Etalon Group PLC 16 January 2024
16 January 2024
Record Sales in 2023: Regional Expansion Underpins Strong Double-digit 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 fourth quarter and twelve months ended 31
December 2023, based on management accounts.
FY 2023 operating highlights
· New contract sales increased by 87% year-on-year to 547.2 ths sqm
· The value of new contract sales increased by 80% year-on-year to RUB
106 billion
· Sales at projects in regional markets increased 274% year-on-year to
188.4 ths sqm, while the value of new contract sales in the same markets
increased 339% to RUB 24 billion
· Projects in regional markets accounted for 34% of sales in terms of
floor space and 23% of sales in monetary terms
· Cash collections increased by 36% to RUB 82 billion
· The average price per sqm was RUB 192.9 thousand, and the average
price per sqm of residential property was RUB 232.7 thousand
FY 2023 operating results
2022 2023 Change, %
New sales, sqm 292,396 547,235 87%
Moscow and the Moscow region 121,371 210,652 74%
St Petersburg 120,619 148,232 23%
Other regions 50,405 188,350 274%
New sales, RUB mln 58,652 105,564 80%
Moscow and the Moscow region 32,296 58,068 80%
St Petersburg 20,944 23,739 13%
Other regions 5,412 23,756 339%
Number of contracts 6,457 11,689 81%
Moscow and the Moscow region 2,645 4,269 61%
St Petersburg 2,609 3,456 32%
Other regions 1,203 3,964 230%
Cash collections, RUB mln 60,386 82,108 36%
Moscow and the Moscow region 31,501 41,954 33%
St Petersburg 24,206 20,423 (16%)
Other regions 4,679 19,731 322%
Average price, RUB/sqm 200,591 192,904 (4%)
Moscow and the Moscow region 266,096 275,659 4%
St Petersburg 173,634 160,149 (8%)
Other regions 107,369 126,129 17%
Average price (apartments), RUB/sqm 261,721 232,675 (11%)
Moscow and the Moscow region 344,131 347,803 1%
St Petersburg 250,674 245,578 (2%)
Other regions 119,428 129,574 8%
4Q 2023 operating highlights
· New contract sales increased 152% year-on-year to RUB 206.6 ths sqm
· In monetary terms, new contract sales increased 152% to RUB 40
billion
· Sales at projects in regional markets increased 161% to 72.7 sqm; the
value of new contract sales in the same markets rose 211% to RUB 10 billion
· Projects in regional markets accounted for 35% of sales in terms of
floor space and 25% of sales in monetary terms
· Cash collections increased by 76% to RUB 29 billion
· The average price per sqm was RUB 195.5 thousand, while the average
price per sqm of residential property increased by 5% to RUB 250 thousand
4Q 2023 operating results
4Q 2022 4Q 2023 Change, %
New sales, sqm 81,934 206,617 152%
Moscow and the Moscow region 28,493 79,231 178%
St Petersburg 25,534 54,667 114%
Other regions 27,907 72,720 161%
New sales, RUB mln 16,004 40,392 152%
Moscow and the Moscow region 7,683 22,411 192%
St Petersburg 5,039 7,761 54%
Other regions 3,282 10,221 211%
Number of contracts 1,770 4,526 156%
Moscow and the Moscow region 618 1,607 160%
St Petersburg 533 1,396 162%
Other regions 619 1,523 146%
Cash collections, RUB mln 16,579 29,214 76%
Moscow and the Moscow region 7,687 15,068 96%
St Petersburg 5,921 6,305 6%
Other regions 2,970 7,841 164%
Average price, RUB/sqm 195,324 195,493 0%
Moscow and the Moscow region 269,655 282,856 5%
St Petersburg 197,335 141,961 (28%)
Other regions 117,593 140,550 20%
Average price (apartments), RUB/sqm 229,297 240,952 5%
Moscow and the Moscow region 328,379 361,370 10%
St Petersburg 261,911 241,931 (8%)
Other regions 123,573 143,608 16%
Quarterly operating performance
4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023
New sales, sqm 81,934 73,633 110,635 156,295 206,617
New sales, RUB mln 16,004 13,436 20,566 31,169 40,392
Number of contracts 1,770 1,555 2,265 3,343 4,526
Cash collections, RUB mln 16,579 12,001 16,209 24,684 29,214
Average price, RUB/sqm 195,324 182,478 185,892 199,424 195,493
Average price (apartments), RUB/sqm 229,297 219,541 223,389 234,170 240,952
Share of mortgages (total) 58% 47% 50% 49% 51%
Share of mortgages (apartments) 79% 70% 71% 72% 77%
Commenting on the Company's operating results in 4Q and FY 2023, Etalon Group
CEO Gennadiy Shcherbina said:
"Last year was the best year in the Company's history in terms of sales. New
contract sales for the year amounted to RUB 106 billion, which was an 80%
increase from 2022 and a 25% increase from 2021. Sales were especially robust
from October to December: the last quarter was the strongest in our history
when it comes to sales, both in terms of floor space and in monetary terms.
"The main reason for our rapid growth in 2023 was the expansion of our
regional operations. We put new space on the market at nine regional projects
during the year, resulting in a nearly fourfold increase in sales in regional
markets, accounting for 35% of our total property sales, while prices rose 16%
by the end of the year.
"Despite an increase in the key rate, we see excellent potential for further
growth this year: an increase in market mortgage rates will encourage buyers
to purchase property in the primary market, and, with the continuation of
preferential mortgage programmes in regional markets, we will be able to count
on stable demand in those cities where we are increasing our supply. Further
expansion into new regions will help us reach more customers. At the same
time, there is unmet demand for quality affordable housing in regional
markets, and we believe that our experience and competencies when it comes to
building a project portfolio with extensive regional diversification gives us
an advantage over players that are new to these markets."
This and other announcements are available on the Etalon Group website:
https://www.etalongroup.com/investor-relations/investor-news/
(https://www.etalongroup.com/ru/investoram/novosti/)
Contact information
Etalon Group
IR Team
T: +44 (0) 20 8123 1328
E: ir@etalongroup.com
EM
E: etalon@em-comms.com (mailto: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 9.0 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 2023, Etalon Group's new contract sales totalled 547 ths sqm, or RUB 105.6
billion.
The Company's revenue in 2022 amounted to RUB 80.6 billion, with EBITDA of RUB
16.5 billion.
Etalon Group's GDRs were listed on the Main Market of the London Stock
Exchange on 20 April 2011 and have been 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.
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