Etalon Group Reports FY 2019 Operating Results

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 twelve months and three months ended 31 December 2019, based on management accounts.

FY 2019 operating highlights

• Deliveries reached a record high 622 ths sqm of NSA
• The number of new contracts amounted to 12,040
• New contract sales amounted to 630,399 sqm
• New contract sales in monetary terms increased by 13% year-on-year to RUB 77,627 million
• Cash collections rose by 24% year-on-year to RUB 77,713 million
• Average price per sqm rose by 13% year-on-year to RUB 123,140
• Average price per sqm of apartments grew by 20% year-on-year to RUB 148,729

FY 2019 operating results

Regional breakdown

4Q 2019 operating highlights

• The number of new contracts reached 2,931
• New contract sales amounted to 171,530 sqm and RUB 21,795 million
• Cash collections amounted to RUB 18,791 million
• Average price per sqm was RUB 127,060, up by 10% year-on-year
• Average price per sqm of apartments grew by 19% year-on-year to RUB 156,271
• Average down payment remained at a high level and amounted to 83%

4Q 2019 operating results

Quarterly operating performance

Regional breakdown

Mortgage contract developments

Commenting on the FY 2019 operating results, Etalon Group CEO Gennadiy Shcherbina said:

“Despite the anticipated slowdown in housing sales in the second half of 2019, which was driven by front-loaded demand in late 2018 and early 2019 ahead of the introduction of new industry regulations, Etalon Group once again delivered record sales results for FY 2019. While our FY 2019 sales volume of 630 ths sqm was in line with last year’s result, a significant year-on-year increase in price per sqm enabled Etalon Group to increase NCS in monetary terms to RUB 78 billion, which nearly coincides with the guidance we announced at the beginning of the year. At the same time, we exceeded our target for cash collections, which reached RUB 78 billion. Thanks to our balanced approach to pricing, we managed not only to achieve these targets but also to maintain sufficient levels of property at advanced stages of completion that will not fall under the new regulations and that can be sold in 2020 at even more attractive prices, which should provide good support for Etalon Group’s profitability and cash flows.

“Looking at 4Q 2019, putting aside the high base for comparison, we sold 172 ths sqm of NSA worth RUB 22 billion, which is our strongest quarterly result in 2019, and the second highest quarterly result ever achieved by Etalon Group after our best-ever 4Q 2018. This strong performance indicates a fast recovery in housing demand amid a record decline in mortgage rates, and it gives us confidence in our ability to achieve even more impressive results in 2020.

“In 2019, Etalon Group completed the acquisition of Leader-Invest, consolidated 100% of the ZIL-Yug project and paid record dividends in the amount of RUB 3.6 billion while maintaining its net debt to LTM EBITDA ratio at a comfortable level of 1.98x, which was possible thanks to our strong cash collections performance during the year. At the same time, we are confident that Etalon Group will further strengthen its financial position in the years ahead thanks to our inventory of available and ready for sale real estate and projects excluded from the requirements of Russia’s new industry regulations.”

Etalon Group will host a conference call for investors and analysts today at 14:00 London time (17:00 Moscow; 09:00 New York).

On the call, the Etalon Group management team will present the FY and 4Q 2019 operating results, followed by a question and answer session for participants.

https://edge.media-server.com/mmc/p/eg5mprat

+44 2071 928000 – Standard International
+44 844 571 8892 – London
+7 495 249 9849 – Moscow
+1 631 510 7495 – New York

Conference ID Code: 4018298

This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/en/news/.

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 develops real estate projects for the middle class in Moscow, the Moscow region and St Petersburg. 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 38 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.

Etalon Group’s total assets comprise 27 projects under development, unsold inventory at completed residential complexes and commercial properties, with total unsold NSA of 5.5 million sqm, as well as a construction and maintenance division. According to Nikoliers, the value of Etalon Group assets as of 31 December 2024 was RUB 305 billion.

In 2025, Etalon Group’s new contract sales totalled 671 ths sqm, or RUB 153.5 billion.

The Company’s revenue in 2024 amounted to RUB 131 billion, with EBITDA of RUB 27.6 billion.

Etalon Group shares are traded on the Moscow Exchange (ticker ETLN) and have been included in the Level 2 quotation list since September 2025.