ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces the publication of its audited consolidated IFRS financial statements for the first half of the year ended 30 June 2022.
1H 2022 financial highlights:
- Consolidated revenue for 1H 2022 amounted to RUB 32.7 billion.
- Consolidated gross profit before purchase price allocation (PPA) for the period reached RUB 10.5 billion, while consolidated gross profit amounted to RUB 9.8 billion.
- Pre-PPA consolidated gross margin was 32%; in the Company’s core segment of residential development, it was 35%.
- Pre-PPA LTM EBITDA amounted to RUB 16.2 billion; LTM EBITDA was RUB 13.8 billion.
- Net profit for the period increased from RUB 1.3 billion in 1H 2021 to a record RUB 11.7 billion in 1H 2022.
- Net corporate debt1 as of 30 June 2022 was RUB 2.5 billion, and the ratio of net corporate debt to pre-PPA LTM EBITDA was 0.15x.
- Operating cash flow less interest paid, including cash collections in escrow, amounted to RUB 0.3 billion.
- The amount of funds in escrow reached RUB 77.3 billion.
Commenting on the Company’s 1H 2022 financial results, Etalon Group CEO Gennadiy Shcherbina said:
“In implementing our strategy, we have been working hard since the middle of last year to expand our business through both the acquisition of land plots and the inorganic expansion of our portfolio. In May 2022, we completed a profitable deal for the acquisition of YIT Corporation’s Russian business. As a result, we were able not only to add 600 ths sqm to our portfolio, expand into new regions and enhance our competencies but also to bolster our earnings in the first half of this year.
“By concluding a transaction on terms that were extremely favourable for us, we achieved a record net profit of RUB 11.7 billion. However, revenue was influenced by market turbulence and decreased year-on-year sales due to a temporary reduction in our real estate supply. The gross margin in our core segment of residential development remained at the target level of 35% despite increases in procurement and logistical costs.
“At the same time, there was a slight change, of only 3%, in administrative and selling expenses. Pre-PPA LTM EBITDA exceeded RUB 16 billion, with a margin of 20%. Adjusted for purchase price, LTM EBITDA amounted to RUB 13.8 billion.
“The current market situation has opened up considerable room for market consolidation on the part of major players. In this environment, we continue to actively expand our portfolio and product range. With our planned fourfold increase in supply compared with 2021, portfolio diversification and work on standardisation, we expect to make our product more affordable while maintaining high margins. We are also open to further inorganic business expansion if the right opportunity comes along. This would enable us to ensure a steady increase in sales and improved financial performance, bringing us closer to achieving our strategic goals to 2024.”
Commenting on the Company’s financial results for 1H 2022, Etalon Group Chief Financial Officer Ilya Kosolapov added:
“In the first half of the year, even when taking the M&A transaction into account, net corporate debt was only RUB 2.5 billion, compared with RUB 2.6 billion at the end of 2021. The ratio of net corporate debt to adjusted LTM EBITDA as of 30 June of this year was close to zero. Our net cash position on a project basis reached RUB 22 billion; funds in escrow exceeded project debt by 40%. Our strong financial position in a turbulent market enables us to develop an ambitious strategic programme as well as to take advantage of emerging market opportunities for business expansion.”
This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/en/news/.
IR Team
About Etalon Group
Founded in 1987, today Etalon Group is one of the leading nationwide players in Russia’s development and housing construction sector. The Company develops real estate projects for the middle class in Moscow, the Moscow region and St Petersburg. The Company has been actively developing in eight regions across Russia since 2021, with large-scale projects under way in Omsk, the Novosibirsk region, Ekaterinburg, Tyumen and Kazan. With 38 years of successful operations and ongoing regional expansion, the Company remains one of the largest players in the Russian real estate market. Since its foundation, Etalon Group has delivered 9.2 mln sqm of real estate.
Thanks to its integrated business model, Etalon Group creates 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 6,000 people.
Etalon Group’s total assets comprise 27 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 5.5 million sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2024 was RUB 305 billion.
In 2025, Etalon Group’s new contract sales totalled 671 ths sqm, or RUB 153.5 billion.
The Company’s revenue in 2024 amounted to RUB 131 billion, with EBITDA of RUB 27.6 billion.
Etalon Group shares are traded on the Moscow Exchange (ticker ETLN) and have been included in the Level 2 quotation list since September 2025.