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 three months and nine months ended 30 September 2024, based on the Company’s management accounts.
9M 2024 operating highlights:
- Property sales increased by 59% to 541.9 ths sqm
- The total value of new contracts rose 77% to RUB 115.5 billion
- Sales in regional projects increased by a factor of 1.4 to 163.4 ths sqm, and the total value of regional contracts increased by a factor of 1.8 to RUB 24.7 billion
- The share of regional projects in sales was 30% in volume terms and 21% in monetary terms
- Cash collections increased by 37% to RUB 72.2 billion
- Average price per sqm increased by 11% to RUB 213.2 thousand, while the average price per sqm of residential property increased by 22% to RUB 276.9 thousand
9M 2024 operating results:
| 9M 2023 | 9M 2024 | Change, % | |
|---|---|---|---|
| New contract sales, sqm | 340,617 | 541,916 | 59% |
| Moscow and the Moscow region | 131,422 | 202,295 | 54% |
| St Petersburg | 93,565 | 176,217 | 88% |
| Other regions | 115,631 | 163,404 | 41% |
| New sales, RUB mln | 65,172 | 115,540 | 77% |
| Moscow and the Moscow region | 35,657 | 61,562 | 73% |
| St Petersburg | 15,979 | 29,299 | 83% |
| Other regions | 13,536 | 24,679 | 82% |
| Number of contracts | 7,163 | 10,827 | 51% |
| Moscow and the Moscow region | 2,662 | 4,242 | 59% |
| St Petersburg | 2,060 | 3,227 | 57% |
| Other regions | 2,441 | 3,358 | 38% |
| Cash collections, RUB mln | 52,894 | 72,217 | 37% |
| Moscow and the Moscow region | 26,886 | 33,014 | 23% |
| St Petersburg | 14,118 | 21,219 | 50% |
| Other regions | 11,890 | 17,984 | 51% |
| Average price, RUB/sqm | 191,334 | 213,207 | 11% |
| Moscow and the Moscow region | 271,320 | 304,318 | 12% |
| St Petersburg | 170,776 | 166,268 | (3%) |
| Other regions | 117,059 | 151,029 | 29% |
| Average price (apartments), RUB/sqm | 227,800 | 276,934 | 22% |
| Moscow and the Moscow region | 339,764 | 394,626 | 16% |
| St Petersburg | 247,390 | 296,523 | 20% |
| Other regions | 120,657 | 155,427 | 29% |
3Q 2024 operating highlights:
- Property sales reached a record 157.3 ths sqm
- Sales in monetary terms increased by 19% to a third-quarter record RUB 36.9 billion
- Sales in regional projects totalled 46.9 ths sqm, and the total value of regional contracts increased by 14% to RUB 7.4 billion
- Regional projects accounted for 30% of sales in volume terms and 20% in monetary terms
- Cash collections totalled RUB 24.3 billion
- The average price per sqm increased by 18% to RUB 234.9 thousand, while the average price per sqm of residential property increased by 25% to RUB 293.2 thousand
3Q 2024 operating results:
| 3Q 2023 | 3Q 2024 | Change, % | |
|---|---|---|---|
| New contract sales, sqm | 156,337 | 157,294 | 1% |
| Moscow and the Moscow region | 60,900 | 55,378 | (9%) |
| St Petersburg | 40,464 | 54,978 | 36% |
| Other regions | 54,973 | 46,938 | (15%) |
| New sales, RUB mln | 31,169 | 36,948 | 19% |
| Moscow and the Moscow region | 18,168 | 17,475 | (4%) |
| St Petersburg | 6,468 | 12,045 | 86% |
| Other regions | 6,532 | 7,428 | 14% |
| Number of contracts | 3,343 | 3,368 | 1% |
| Moscow and the Moscow region | 1,256 | 1,136 | (10%) |
| St Petersburg | 947 | 1,247 | 32% |
| Other regions | 1,140 | 985 | (14%) |
| Cash collections, RUB ml | 24,684 | 24,292 | (2%) |
| Moscow and the Moscow region | 13,206 | 10,531 | (20%) |
| St Petersburg | 6,065 | 7,580 | 25% |
| Other regions | 5,413 | 6,181 | 14% |
| Average price, RUB/sqm | 199,371 | 234,899 | 18% |
| Moscow and the Moscow region | 298,330 | 315,562 | 6% |
| St Petersburg | 159,855 | 219,096 | 37% |
| Other regions | 118,830 | 158,242 | 33% |
| Average price (apartments), RUB/sqm | 234,557 | 293,225 | 25% |
| Moscow and the Moscow region | 354,313 | 401,440 | 13% |
| St Petersburg | 251,681 | 327,649 | 30% |
| Other regions | 121,824 | 164,956 | 35% |
Quarterly operating results:
| 3Q 2023 | 4Q 2023 | 1Q 2024 | 2Q 2024 | 3Q 2024 | |
|---|---|---|---|---|---|
| New contract sales, sqm | 156,337 | 206,617 | 189,021 | 195,600 | 157,294 |
| New contract sales, RUB mln | 31,169 | 40,392 | 40,965 | 37,627 | 36,948 |
| Number of contracts | 3,343 | 4,526 | 3,816 | 3,643 | 3,368 |
| Cash collections, RUB mln | 24,684 | 29,214 | 21,457 | 26,469 | 24,292 |
| Average price, RUB/sqm | 199,371 | 195,493 | 216,722 | 192,365 | 234,899 |
| Average price (apartments), RUB/sqm | 234,557 | 240,952 | 283,244 | 256,570 | 293,225 |
| Share of mortgages (total) | 49% | 51% | 25% | 45% | 29% |
| Share of mortgages (apartments) | 72% | 77% | 39% | 63% | 47% |
Commenting on the 3Q and 9M 2024 operating results, Etalon Group Chief Financial Officer Ilya Kosolapov said:
“Sales in the third quarter and the first nine months of 2024 were the strongest in the Company’s history both in volume terms and in monetary terms, thanks to our work to adapt the business to the new external environment. In the period from July to September, we sold a record 157 thousand square metres, while the value of contracts concluded with buyers was up 19% to RUB 36.9 billion.
“The Company achieved steady sales growth in a challenging market by leveraging its own proprietary financial product, which can replace mortgage programmes to some extent, and also thanks to a high-quality project portfolio diversified across regions and segments. These two factors enabled us to boost key operating metrics even against the high base of the third quarter of 2023, when we saw increased demand for new builds due to rising market rates and the shift of buyers from the secondary market to the primary market.
“The anticipated decline in the share of mortgage sales since July has had no noticeable impact on our cash inflows or escrow account balances. The funds in escrow exceed the Company’s project debt by a factor of 1.2, allowing us to secure special project financing from banks up to 3.5%. Meanwhile, robust sales performance over the past nine months puts us on track for double-digit sales growth by year-end, which in turn will have a positive impact on our financial results.”
This and other recent announcements are available on the Etalon Group website: https://www.etalongroup.com/investor-relations/investor-news/
Contact Information
Etalon Group
IR Team
T: +44 (0) 20 8123 1328
E: ir@etalongroup.com
EM
About Etalon Group
Founded in 1987, Etalon Group is one of Russia’s largest development and construction companies. 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 37-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 almost 6,000 people, and its nationwide sales network covers 35 regions of Russia.
Etalon Group’s assets comprise 32 projects at the design and construction stages in 8 regions, unsold inventory at completed residential complexes and commercial properties with total unsold NSA of 5.9 mln sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group’s assets as of 31 December 2023 was RUB 303 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 have been traded on Moscow Exchange (ticker ETLN) since February 2020.