Threefold Increase in Regional Revenue and Greater Investment in Business Expansion Highlight Etalon Group’s 2023 Financial Results

25 March 2024

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 full year ended 31 December 2023.

FY 2023 financial highlights:

  • Consolidated revenue increased by 10% to RUB 88.8 billion, while revenue in the residential development segment reached RUB 78.0 billion (up 13% year-on-year).
  • In the regional residential development segment, revenue rose 236% year-on-year to RUB 11.6 billion.
  • Consolidated gross profit in 2023 rose by 6% to RUB 30.0 billion, and gross profit in the residential development segment increased by 12% year-on-year to RUB 28.7 billion.
  • Pre-PPA gross profit for the period amounted to RUB 31.3 billion (up 2% year-on-year).
  • The Company’s consolidated pre-PPA gross margin was 35%; in its core segment, residential development, it was 39%.
  • EBITDA amounted to RUB 18.1 billion, an increase of 10% year-on-year; EBITDA margin in 2023 was 20%.
  • Pre-PPA EBITDA amounted to RUB 19.4 billion, and pre-PPA EBITDA margin reached 22%.
  • Pre-PPA net loss was RUB 2.3 billion for FY 2023.
  • Net corporate debt as of 31 December 2023 amounted to RUB 37 billion, and the ratio of net corporate debt to pre-PPA EBITDA was 1.9x.
  • Funds in escrow accounts amounted to RUB 77.4 billion.


Commenting on the Company’s FY 2023 financial results, Etalon Group’s Chief Executive Officer, Gennadiy Shcherbina, said:

“Our consolidated revenue amounted to RUB 88.8 billion in 2023, an increase of 10% year-on-year. Despite being at an early stage of our regional expansion, we have seen robust performance gains from our regional projects, whose contribution to revenue and gross profit tripled last year.

“We maintained high margins: our gross pre-PPA margin in 2023 was at the target level of 35%, and it was 39% in the residential development sector.

“Strict control of costs and scaling reduced our SG&A ratio to 14.2%, down from 15.2% in 2022, which in turn supported a 10% year-on-year increase in EBITDA.

“We entered an investment phase in our development associated with the rapid expansion of our geographic footprint and the consolidation of our leading positions in regional markets. We launched projects in all our new regions in 2023, becoming a genuine nationwide player. Aggressive business growth is contingent on substantial capital investments; amid high interest rates, this puts temporary pressure on net profit. At the same time, we expect regional expansion to enable us to increase business volumes severalfold in the coming years and to gain a leading position in regional markets, while lower rates in the medium term together with reduced overhead costs and increased efficiency will enable us to achieve higher profitability.”

Commenting on the Company’s financial results for FY 2023, Etalon Group’s Chief Financial Officer, Ilya Kosolapov, added:

“At a stage where we are investing in regional expansion and developing a large number of new projects, we were able to maintain our ratio of net corporate debt to pre-PPA EBITDA at the comfortable level of 1.9x, with a target of 2x–3x. Taking into account the increased cost of borrowing tied to the key rate, we are closely monitoring our ratio of project debt to funds in escrow. As of the end of 2023, we were able to cover our entire project financing drawdown with funds in escrow, which allowed us to receive project financing at a reduced rate. Our strong financial position enables us to further develop our regional portfolio and to achieve our strategic goals when it comes to expansion into new regions.”

This and other recent announcements are available on the Etalon Group website:

Contact Information

Etalon Group

IR Team
T: +44 (0) 20 8123 1328



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 has been actively developing in eight regions of 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 9.0 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 nearly 6,000 people, and its nationwide sales network covers 35 regions across Russia.

Etalon Group’s assets comprise 38 projects at the design and construction stages in eight regions, 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 2023 amounted to RUB 88.8 billion, with EBITDA of RUB 18.1 billion.

Etalon Group’s GDRs are traded on Moscow Exchange (ticker ETLN), where they are included in the Level 1 quotation list.