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 fourth quarter and twelve months ended 31 December 2024, based on management accounts.
FY 2024 operating highlights:
- New contract sales set new records: 699 ths sqm (+28% year-on-year) and RUB 146.2 billion (+39% year-on-year)
- Regional projects accounted for 29% of sales in terms of floor space and 21% of sales in monetary terms
- Cash collections rose 16% to a record RUB 95.6 billion
- The average price per sqm reached RUB 209.2 thousand, and the average price per sqm of residential real estate increased to RUB 279.4 thousand
FY 2024 operating results:
2023 | 2024 | Change, % | |
---|---|---|---|
New contract sales, sqm | 547,235 | 699,107 | 28% |
Moscow and the Moscow region | 210,652 | 247,662 | 18% |
St Petersburg | 148,232 | 250,849 | 69% |
Other regions | 188,350 | 200,596 | 7% |
New contract sales, RUB mln | 105,564 | 146,241 | 39% |
Moscow and the Moscow region | 58,068 | 74,735 | 29% |
St Petersburg | 23,739 | 40,829 | 72% |
Other regions | 23,756 | 30,677 | 29% |
Number of contracts | 11,689 | 14,304 | 22% |
Moscow and the Moscow region | 4,269 | 5,372 | 26% |
St Petersburg | 3,456 | 4,795 | 39% |
Other regions | 3,964 | 4,137 | 4% |
Cash collections, RUB mln1 | 82,108 | 95,575 | 16% |
Moscow and the Moscow region | 41,954 | 42,490 | 1% |
St Petersburg | 20,423 | 30,529 | 49% |
Other regions | 19,731 | 22,556 | 14% |
Average price, RUB/sqm | 192,904 | 209,183 | 8% |
Moscow and the Moscow region | 275,659 | 301,764 | 9% |
St Petersburg | 160,149 | 162,763 | 2% |
Other regions | 126,129 | 152,928 | 21% |
Average price (apartments), RUB/sqm | 232,675 | 279,443 | 20% |
Moscow and the Moscow region | 347,803 | 399,726 | 15% |
St Petersburg | 245,578 | 296,736 | 21% |
Other regions | 129,574 | 158,384 | 22% |
4Q 2024 operating highlights:
- New contract sales amounted to 157 ths sqm and RUB 30.7 bln
- Cash collections totalled RUB 22.2 billion
- The average price per sqm of residential real estate increased by 20% to RUB 289.9 thousand, while the average price per sqm of all property types was RUB 195.3 thousand
- Thirty-four per cent of all purchases were backed by a mortgage
Quarterly operating results:
4Q 2023 | 1Q 2024 | 2Q 2024 | 3Q 2024 | 4Q 2024 | |
---|---|---|---|---|---|
New contract sales, sqm | 206,617 | 189,021 | 195,600 | 157,294 | 157,191 |
New contract sales, RUB mln | 40,392 | 40,965 | 37,627 | 36,948 | 30,701 |
Number of contracts | 4,526 | 3,816 | 3,643 | 3,368 | 3,477 |
Cash collections, RUB mln | 29,214 | 21,457 | 26,469 | 24,292 | 22,226 |
Average price, RUB/sqm | 195,493 | 216,722 | 192,365 | 234,899 | 195,311 |
Average price (apartments), RUB/sqm | 240,952 | 283,244 | 256,570 | 293,225 | 289,904 |
Share of mortgages (total) | 51% | 25% | 45% | 29% | 19% |
Share of mortgages (apartments) | 77% | 39% | 63% | 47% | 34% |
Commenting on Etalon Group’s operating results for 2024, Mikhail Buzulutsky, the Group’s Chief Executive Officer, said:
“We demonstrated record annual performance in terms of new contract sales and cash collections despite market turbulence. We sold nearly 700 ths sqm for a total of RUB 146 billion, and cash collections on customer contracts surpassed our results from 2021, an exceptionally strong year for the industry. All these metrics rose at a robust, double-digit rate.
“We attribute this steady growth to the high quality of our project portfolio and its balance across regions and segments. Additional support for sales came from strong price growth as projects advanced closer to completion; in addition, sales began in April at LDM, our flagship premium-class project in St Petersburg.
“Market changes over the past two years have been reflected in fluctuations in demand. While buying reached its peak in 3Q–4Q 2023 due to an increase in the key rate and a shift in customer focus to the primary market, in 2024 we observed an unusual surge in demand in 2Q, shortly before preferential mortgages were phased out. Despite these shifts in demand, new contract sales in the last quarter of 2024 exceeded the quarterly average for 2023 by 15%.
“In late 2024, following a hike in the key rate to 21%, we switched our focus to balancing the construction of new project phases and sales, which enabled us to maintain coverage of project debt with funds in escrow at a level of 1.1x and, as a result, to secure a preferential rate for project financing. As of the end of November, our rate for project debt was 4.3%, while the rate for our total loan portfolio, including corporate debt, was only 11.5%. Our financial discipline, comfortable debt position and land bank of 8 million sqm across 10 regions position us to maintain healthy business growth, and our strong 2024 sales will support future financial performance.”
(1) Data on cash collections for 2024 includes collections from DVA Group projects acquired in December 2024.
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
E: ir@etalongroup.com
EM
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 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, and its nationwide sales network covers 35 regions across Russia.
Etalon Group’s assets comprise 32 projects at the design and construction stages in eight 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 assets as of 31 December 2023 was RUB 303 billion.
In 2024, Etalon Group’s new contract sales totalled 699 ths sqm, or RUB 146.2 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.