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 2020, based on management accounts.
FY 2020 operating highlights
- The number of new contracts amounted to 9,725
- New contract sales amounted to 538 ths sqm
- New contract sales in monetary terms increased by 3% year-on-year reaching an all-time high of RUB 79.9 billion
- Cash collections rose by 5% year-on-year to RUB 82.0 billion
- Average price per sqm was RUB 148.5 ths, up by 21% year-on-year
- Average price per sqm of apartments grew by 20% year-on-year to RUB 178.7 ths
FY 2020 operating results
| 2020 | 2019 | Change, % | |
|---|---|---|---|
| New sales, sqm | 538,194 | 630,399 | (15%) |
| New sales, mln RUB | 79,922 | 77,627 | 3% |
| Number of contracts | 9,725 | 12,040 | (19%) |
| Cash collections, mln RUB | 81,985 | 77,713 | 5% |
| Average price, RUB/sqm | 148,501 | 123,140 | 21% |
| Average price (apartments), RUB/sqm | 178,685 | 148,729 | 20% |
| Deliveries, sqm | 540,325 | 621,867 | (13%) |
Regional breakdown
| 2020 | 2019 | Change, % | |
|---|---|---|---|
| Moscow metropolitan area | |||
| New sales, sqm | 272,421 | 302,560 | (10%) |
| New sales, mln RUB | 46,743 | 43,180 | 8% |
| Number of contracts | 4,938 | 5,619 | (12%) |
| Cash collections, mln RUB | 48,673 | 45,656 | 7% |
| Average price, RUB/sqm | 171,585 | 142,717 | 20% |
| Average price (apartments), RUB/sqm | 213,274 | 169,154 | 26% |
| Deliveries, sqm | 193,425 | 353,129 | (45%) |
| St Petersburg | |||
| New sales, sqm | 265,773 | 327,839 | (19%) |
| New sales, mln RUB | 33,179 | 34,447 | (4%) |
| Number of contracts | 4,787 | 6,421 | (25%) |
| Cash collections, mln RUB | 33,312 | 32,057 | 4% |
| Average price, RUB/sqm | 124,839 | 105,073 | 19% |
| Average price (apartments), RUB/sqm | 145,989 | 129,078 | 13% |
| Deliveries, sqm | 346,901 | 268,738 | 29% |
4Q 2020 operating highlights
- The number of new contracts reached 3,137
- New contract sales amounted to 166.8 ths sqm and RUB 26.4 billion, up by 21% year-on-year in monetary terms
- Cash collections increased by 55% year-on-year to RUB 29.2 billion
- Average price per sqm rose by 25% year-on-year to RUB 158.4 ths
- Average price per sqm of apartments grew by 23% year-on-year to RUB 191.9 ths
- Average down payment reached a record level of 93%
4Q 2020 operating results
| 4Q 2020 | 4Q 2019 | Change, % | |
|---|---|---|---|
| New sales, sqm | 166,788 | 171,530 | (3%) |
| New sales, mln RUB | 26,418 | 21,795 | 21% |
| Number of contracts | 3,137 | 2,931 | 7% |
| Cash collections, mln RUB | 29,203 | 18,791 | 55% |
| Average price, RUB/sqm | 158,392 | 127,060 | 25% |
| Average price (apartments), RUB/sqm | 191,853 | 156,271 | 23% |
| Deliveries, sqm | 347,396 | 308,294 | 13% |
Quarterly operating performance
| 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | |
|---|---|---|---|---|---|
| New sales, sqm | 166,788 | 150,451 | 94,984 | 125,971 | 171,530 |
| New sales, mln RUB | 26,418 | 23,983 | 11,585 | 17,936 | 21,795 |
| Number of contracts | 3,137 | 2,706 | 1,559 | 2,323 | 2,931 |
| Cash collections, mln RUB | 29,203 | 21,235 | 13,942 | 17,604 | 18,791 |
| Average price, RUB/sqm | 158,392 | 159,405 | 121,971 | 142,384 | 127,060 |
| Average price (apartments), RUB/sqm | 191,853 | 186,327 | 159,063 | 165,481 | 156,271 |
| Deliveries, sqm | 347,396 | 15,570 | 88,847 | 88,513 | 308,294 |
Regional breakdown
| 4Q 2020 | 4Q 2019 | Change, % | ||
|---|---|---|---|---|
| Moscow metropolitan area | ||||
| New sales, sqm | 86,470 | 70,084 | 23% | |
| New sales, mln RUB | 15,315 | 10,651 | 44% | |
| Number of contracts | 1,715 | 1,167 | 47% | |
| Cash collections, mln RUB | 18,436 | 9,888 | 86% | |
| Average price, RUB/sqm | 177,110 | 151,971 | 17% | |
| Average price (apartments), RUB/sqm | 221,118 | 196,420 | 13% | |
| Deliveries, sqm | 73,967 | 102,482 | (28%) | |
| St Petersburg | ||||
| New sales, sqm | 80,318 | 101,445 | (21%) | |
| New sales, mln RUB | 11,103 | 11,144 | (0%) | |
| Number of contracts | 1,422 | 1,764 | (19%) | |
| Cash collections, mln RUB | 10,767 | 8,903 | 21% | |
| Average price, RUB/sqm | 138,241 | 109,850 | 26% | |
| Average price (apartments), RUB/sqm | 162,723 | 130,579 | 25% | |
| Deliveries, sqm | 273,429 | 205,812 | 33% | |
Mortgage contract developments
| 4Q 2020 | 3Q 2020 | 2Q 2020 | 1Q 2020 | 4Q 2019 | ||
|---|---|---|---|---|---|---|
| Share of mortgages (total) | 44% | 47% | 44% | 36% | 35% | |
| Share of mortgages (apartments) | 65% | 64% | 63% | 52% | 52% | |
Commenting on the FY 2020 operating results, Etalon Group CEO Gennadiy Shcherbina said:
“I am pleased that in FY 2020, Etalon Group has once again delivered record operating results, which exceeded even our optimistic forecast. The Company sold 538 ths sqm of NSA worth RUB 80 billion during the year. Cash collections reached RUB 82 billion, which is the highest level in Etalon Group’s history.
“Sales in the fourth quarter made a significant contribution to our full-year results, thanks to continued sustainable demand for residential real estate and Etalon Group’s diverse portfolio of projects. Key performance metrics in the final quarter of 2020 saw double-digit year-on-year growth. New contract sales in monetary terms increased by 21% year-on-year to RUB 26.4 billion. Achievement of such strong results was made possible by the development of new sales technologies like dynamic pricing, which enabled us to respond more precisely and flexibly to market trends and increase the average price for apartments to RUB 192 ths per sqm. Mortgage rates remaining at historic lows and the higher share of business class projects in our portfolio resulted in the average down payment rising to a record level of 93%. The combination of these factors made possible significant conversion of new contract sales into cash collections, which for the first time in Etalon Group’s history exceeded RUB 29 billion in one quarter, growing by 55% year-on-year.
“The strong performance in 2020 has laid a solid foundation for future growth of our business and achievement of the strategic goals set out in the fall of last year. Our record operating results mean we can count on solid revenue performance for FY 2020, despite a decline in 1H 2020 that was the result of COVID-19 restrictions. At the same time, strong pricing dynamics give us confidence in a continued rapid recovery in profitability.
“We are convinced that continued implementation of plans announced last year related to digital transformation, product improvement and introduction of new construction technologies will enable Etalon Group to achieve even stronger operating and financial results, which will increase value of the Company for its shareholders and all stakeholders.”
Commenting on the FY 2020 operating results, Etalon Group CFO Ilya Kosolapov added:
“Solid cash collections backed by strong sales performance had a positive impact on Etalon Group’s cash flow generation. We had RUB 25.9 billion of cash and cash equivalents at the end of 2020, which brought net corporate debt down to RUB 19.6 billion. This means that our net corporate debt to LTM pre-PPA EBITDA ratio was a comfortable 1.8x. In addition, we hold sufficient funds in escrow accounts to enable us to raise project financing at lower rates. Etalon Group’s robust financial position and cash flow dynamics mean that we can confidently adhere to our dividend policy, which calls for significant annual dividend payments of at least RUB 12 per GDR.”
Conference call and webcast
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 2020 operating results, followed by a question and answer session for participants.
Webcast
https://edge.media-server.com/mmc/p/9wghpz7w
Dial-in numbers:
+44 2071 928338 – Standard International
+44 844 4819 752 – London
+7 495 249 9851 – Moscow
+1 646 741 3167 – New York
Conference ID Code: 9775055
This and other recent announcements are available on the Etalon Group website:
https://www.etalongroup.com/en/news/.
IR Team
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 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.
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 2024, Etalon Group’s new contract sales totalled 699 ths sqm, or RUB 146.2 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.