Etalon Group Reports FY 2015 IFRS Results

21 March 2016

 

Etalon Group Limited ("Etalon Group" or the "Company"), one of Russia's largest and longest-established development and construction companies, announces its audited consolidated IFRS financial statements for the full year ended 31 December 2015.

FY 2015 financial highlights:

  • Consolidated revenue was RUB 42,404 million for FY 2015, compared to RUB 51,481 million in FY 2014
  • Consolidated gross profit amounted to RUB 12,999 million, with gross margin stable year-on-year at 31%
  • EBITDA was RUB 7,675 million in FY 2015, and RUB 10,611 million in FY 2014
  • Profit for the year amounted to RUB 5,429 million, compared to RUB 8,369 million in FY 2014
  • Etalon Group's net debt as of 31 December 2015 was RUB 7,397 million

Other 2015 highlights:

  • Deliveries of 502 ths sqm, exactly in line with the construction plan
  • New contract sales outperformed guidance, reaching 385 ths sqm and RUB 35.1 billion
  • Transfers to customers in 2015 came to 318 ths sqm

Commenting on the FY 2015 financial results, Etalon Group President Viacheslav Zarenkov said:

“Etalon Group’s financial performance in 2015 was impacted by the complex macro environment and the significant market slowdown that affected the entire sector in the first half of the year. At the same time, I am pleased that our efforts throughout the course of last year enabled us to record good financial results: revenue for 2015 was RUB 42.4 billion, second only to the record results achieved in 2014, and with gross profit of RUB 13.0 billion for 2015, we maintained a consolidated gross margin of 31%, in line with the previous years.

“While 2015 was unquestionably a challenging year, we managed to outperform our guidance for new sales, and even achieved double-digit year-on-year growth in the second half. Such strong sales performance contributed to positive operating cash flow generation in 2H 2015, even as we launched significant volumes of new projects during the period.

“Our strong cash generation capacity is a hallmark of Etalon Group’s pre-sales model, which is supported by our reputation as a reliable developer. This enabled us to finish the year with a solid financial position, represented by a net debt/EBITDA ratio below 1x. I would note that we maintained this ratio despite 2015 dividend payments more than doubling compared to 2014.

“I believe we have come into 2016 in excellent form, and we are well-positioned to take advantage of opportunities that are likely to arise in the current market conditions.

“Following the 2015 financial results, Etalon’s Board of Directors is due to consider a 2H 2015 dividend at its meeting on 29 April.”

 

Conference call and webcast

Etalon Group will host a conference call for investors and analysts today at 14:00 London time (17:00 Moscow; 10:00 New York). 

The presentation will be published on the Company's website (www.etalongroup.com) prior to the conference call.

On the call, Etalon Group President Viacheslav Zarenkov, CEO Anton Evdokimov, CFO Boris Svetlichny and Head of Corporate Investments and Investor Relations Kirill Bagachenko will present the FY 2015 IFRS financial results, followed by a question and answer session for participants.

Webcast:<br/> http://edge.media-server.com/m/p/iobcywv5 

Toll numbers:

+44 20 3427 1912 – London<br/> +7 495 705 9451 – Moscow€¨<br/> +1 646 254 3360 – New York 

Toll free numbers:

8 800 500 9312 – Russia (from Moscow only)<br/> 0800 279 5004 – UK<br/> 1 877 280 1254– USA

Conference call confirmation code: 4506878

This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/

Etalon Group IR Team 

T: +44 20 8123 1328 <br/>E: info@etalongroup.com 

EM

Sam VanDerlip <br/>T: +44 7554 993 032<br/>T: +7 499 918 3134<br/>E: vanderlip@em-comms.com

 

About Etalon Group 

Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations. The Company focuses on middle class residential real estate in the Moscow and St. Petersburg metropolitan areas, where it operates through Etalon Invest and LenSpetsSMU subsidiaries. With a 28-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry.

Since its inception, Etalon Group has commissioned 5 million sqm. Etalon Group's CAGR for deliveries in 2010-2015 was 19%.

Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net debt as of 31 December 2015 was RUB 7,397 million.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs 5,000 people, and its nationwide sales and marketing network covers 36 Russian cities.

As of 31 December 2015, Etalon Group's portfolio comprised 28 projects, with a total of 2.72 million sqm of unsold net sellable area. JLL valued this portfolio at RUB 104,384 million.

For the year ended 31 December 2015, Etalon Group's new contract sales totalled 385 ths sqm, or RUB 35,080 million. Deliveries in 2015 totalled 502 ths sqm.

The Company recorded revenue of RUB 42.4 billion and EBITDA of RUB 7.7 billion for the year ended 31 December 2015.

Etalon Group Limited's GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.

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22 March 2016