Etalon Reports 2Q and 1H 2016 Operating Results
Etalon Group Limited (“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 six months ended 30 June 2016, based on management accounts.
1H 2016 operating highlights
- • New contract sales increased by 165% year-on-year to 236 ths sqm, and by 192% year-on-year to RUB 23,143 million
- • The number of new contracts was 4,520, or 143% more than in 1H 2015
- • Deliveries increased 4% year-on-year to 94 ths sqm
2Q 2016 operating highlights
- • New contract sales rose by 140% year-on-year to 101 ths sqm, and by 150% year-on-year to RUB 10,284 million
- • The number of new contracts in the second quarter increased by 127% year-on-year to 1,886
- • Average price per sqm of apartments increased by 7% compared to the first quarter 2016, to RUB 111,966
Commenting on the 2Q and 1H 2016 operating results, Etalon Group President Viacheslav Zarenkov said:
“Etalon Group has delivered an excellent set of operating results for the first half of 2016, strongly outperforming both our own new sales targets and our record-setting 1H 2014 numbers. Impressive new sales were accompanied by healthy pricing dynamics, with the average price per square metre of apartments in 2Q 2016 up by 11% compared to 4Q 2015.
“I am pleased to note that our customers continue to show strong interest in both new projects and in Etalon Group’s inventory of completed apartments. During 1H 2016, we sold 80 ths sqm of the 321 ths sqm in inventory that we had as of 1 January 2016, which represents 25% turnover in this pool in just six months.
“I think that Etalon Group’s success comes down to two key factors: continuing stabilisation of the market, combined with our ability to quickly grow market share thanks to the Company’s strong reputation and ongoing expansion of our sales portfolio assortment.
“Taken together, this has enabled Etalon Group to generate significant positive cash flow, which was used for the payment of dividends in June 2016 and to reduce our debt load. Based on management accounts, as of 30 June 2016 Etalon Group's net debt was just RUB 5.3 billion, representing a net debt/2015 EBITDA ratio of 0.7.
“Taking advantage of our solid balance sheet and strong sales performance, we announced the acquisition of three new projects during the second quarter. These new residential complexes will further diversify the geography of our sales portfolio. Considering the advanced stages of permitting at these projects, we expect to launch sales within the next 12 months – providing additional support for new sales growth in the medium term.”