Etalon Group Reports 1H 2019 IFRS Results

30 September 2019

ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces its consolidated IFRS financial results for the six months ended 30 June 2019.

1H 2019 Financial Highlights:

  • Consolidated revenue increased by 60% year-on-year to RUB 39,562 million for 1H 2019 from RUB 24,699 million in 1H 2018
  • Consolidated gross profit grew by 60% year-on-year to RUB 8,890 million
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) for 1H 2019 amounted to RUB 5,447 million, rising by RUB 5,339 million year-on-year
  • Net income for the period amounted to RUB 959 million
  • Operating cash flow less interest paid increased by 53% year-on-year and amounted to RUB 11,088 million
  • Net debt as of 30 June 2019 was RUB 4,004 million, with net debt/LTM EBITDA at 0.4x

Other 1H 2019 Highlights:

  • Deliveries amounted to 246 ths sqm in 1H 2019
  • The Company achieved record new contract sales in 1H 2019 in both volume and monetary terms: 322 ths sqm and RUB 38,734 million, up by 23% and 41% year-on-year, respectively
  • Cash collections reached an all-time high RUB 42,809 million in 1H 2019

Commenting on the 1H 2019 financial results, Etalon Group CEO Gennadiy Shcherbina said:

“Thanks to outstanding operating results in the first half of the year, as well as the consolidation of Leader-Invest following the acquisition of its controlling stake in February 2019, Etalon Group delivered record revenue of nearly RUB 40 billion in the first half of 2019, an increase of 60% year-on-year.

“Furthermore, gross profit and EBITDA for 1H 2019 also reached new highs in Etalon Group’s more than 30-year history. Gross profit increased by 60% year-on-year to RUB 8.9 billion. EBITDA in 1H 2019 reached RUB 5.4 billion, driven by higher revenue and a significant decline in overhead costs. General and administrative expenses, net of one-off acquisition and integration expenses, decreased by RUB 810 million year-on-year.”

Etalon Group CFO Kirill Bagachenko added:

“On the back of record cash collections in 1H 2019, Etalon Group once again achieved a high positive operating cash flow of RUB 11 billion. Thanks to this strong cash flow performance, the Company was able to maintain a comfortable net debt level of RUB 4 billion, despite completing a large transaction to acquire a controlling stake in Leader-Invest. Moreover, in 2H 2019, the Company has paid out a record dividend of RUB 3.6 billion and consolidated 100% in Leader-Invest. This acquisition has already made and will continue to make a significant contribution to Etalon Group’s financial performance.”

Conference call and webcast

Etalon Group’s management team will present the Company’s 1H 2019 financial results, together with its 3Q 2019 operating performance, during a conference call and webcast for investors and analysts scheduled for mid-October. Dial in and webcast details will be provided prior to the call.

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

Etalon Group IR Team

T: +44 20 8123 1328


Sam VanDerlip
T: +44 7554 993 032
T: +7 499 918 3134

About Etalon Group

Founded in 1987, Etalon Group is one of Russia’s largest development and construction companies. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas. With a more than 30-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 commissioned 6.3 million sqm of real estate.

Etalon Group’s traditionally conservative approach to managing its financial position, solid cash generation and strict working capital management support a secure liquidity position: net cash as of 31 December 2018 was RUB 2.2 billion.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as maintain best-in-class profitability. Etalon Group employs over 5,000 people, and its nationwide sales and marketing network covers 58 Russian cities.

In 2019, Etalon Group acquired and consolidated 100% in Leader-Invest, one of Moscow’s largest residential developers by size of land bank and number of projects currently available for sale.

Etalon Group’s total assets, including the aforementioned consolidation and 100% ownership of ZIL-Yug project, comprise 53 projects under development, completed residential and commercial properties, as well as a construction and maintenance division, with total unsold NSA of 4.0 million sqm. Knight Frank valued the Company’s total assets at RUB 206,071 million as of 31 December 2018.

For the year ended 31 December 2018, Etalon Group’s new contract sales totalled 628 ths sqm, or RUB 68,731 million. Deliveries in 2018 amounted to 479 ths sqm.

The Company recorded revenue of RUB 72.3 billion and EBITDA of RUB 5.7 billion for the year ended 31 December 2018.

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