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 consolidated IFRS financial statements for the full year ended 31 December 2024.
FY 2024 financial highlights:
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Consolidated revenue increased by 44% to a record RUB 131 billion.
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Revenue from the residential development segment grew by 46% to RUB 113.8 billion.
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Consolidated gross profit for the period increased by 38% year-on-year, reaching RUB 41.4 billion.
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Gross margin in the residential development segment was 34%.
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Selling, general and administrative expenses as a percentage of revenue decreased by 2.8 p.p. to 11.2%.
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Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 52% to RUB 27.6 billion, while EBITDA margin was 21% (up 1.1 p.p. year-on-year).
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Net loss amounted to RUB 6.9 billion.
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The ratio of net corporate debt to EBITDA was 2.5x, in line with the target of up to 3x.
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Funds in escrow reached RUB 112.3 billion, bringing the project debt coverage ratio to 1.1x.
Commenting on the Company’s FY 2024 financial results, Etalon Group President Mikhail Buzulutsky said:
“Thanks to our flexible business model and high-quality project portfolio, we increased sales considerably in 2023–2024 despite a shifting market environment. We were able to increase new contract sales by offering a wide range of financial solutions for buyers, and we also picked up the pace of construction, bringing properties nearer to completion. The combined impact of these measures was a significant increase in revenue, rising from RUB 91 billion in 2023 to a record RUB 131 billion in 2024. The revenue growth rate accelerated to 44%, up from 13% a year earlier, comparable to our outstanding performance in 2013 and 2017.
“Gross profit also increased by 38% to an all-time high of RUB 41.4 billion, while gross margin remained at our target level, above 30%, thanks to a sales portfolio that is balanced across regions and price segments.
“The robust growth of our operating business, even in a challenging market environment, was reflected in the strong double-digit increase that we saw across most financial metrics. Moreover, we improved on our first-half performance in the second half of the year, given that, historically, our sales have not been highly dependent on mortgage subsidy programmes.”
Etalon Group CFO Ilya Kosolapov added:
“Our ongoing focus on cost efficiency enabled us to reduce unit selling, general and administrative costs by 2.8 p.p. to 11.2%, which, together with revenue growth, supported a 52% increase in EBITDA to RUB 28 billion. As a result, we are now even closer to achieving our 2026 target of reducing selling, general and administrative costs to 10% of revenue.
“Although the elevated key rate – resulting in high interest expense – continues to put pressure on net profit, we were able to maintain a debt position within target levels despite the current cost of borrowing. As of 31 December 2024, our ratio of net corporate debt to EBITDA was 2.5x, within our comfort range of up to 3x. Funds in escrow exceed our project debt, enabling us to receive project financing at a preferential rate. As a result, the average rate on our debt portfolio as of the end of 2024 was 11.5%.
“We are resilient enough to successfully navigate the current phase of the economic cycle while continuing to develop projects and increase revenue. The expansion of our business, as demonstrated by our 2024 results, will partially offset the pressure from interest expense. As the key rate begins to come down, we expect to demonstrate qualitative growth across our key financial metrics.”
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 37 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 2024, Etalon Group’s new contract sales totalled 699 ths sqm, or RUB 146.2 billion.
The Company’s revenue in 2024 amounted to RUB 131 billion, with EBITDA of RUB 27.6 billion.
Etalon Group’s GDRs have been traded on Moscow Exchange (ticker ETLN) since February 2020.