Etalon Group has announced its consolidated financial results for 2024, showcasing remarkable progress with a 44% increase in revenue, which soared to a historic 131 billion rubles. This growth illustrates the company’s effective adaptation to fluctuating market conditions and highlights its strong position within the residential development sector in Russia.
For the year ended December 31, 2024, consolidated EBITDA also experienced significant growth, climbing by 52% to reach 27.6 billion rubles. The gross profit surged 38% year-on-year, totaling 41.4 billion rubles, underscoring the company’s robust operational performance.
The residential development segment specifically enjoyed a commendable revenue growth of 46%, amounting to 113.8 billion rubles. This increase reflects the group’s strategic maneuvers in a competitive marketplace, as they managed to enhance contract fulfillment and maintain construction progress.
Interestingly, the share of commercial, administrative, and management expenses in overall revenue decreased by 2.8 percentage points, bringing it down to 11.2%. This marks a positive trend highlighting improved efficiency within the organization.
Notably, the gross profitability in the residential development segment maintained a solid 34%. The profitability rate for EBITDA reached 21%, up by 1.1 percentage points compared to the previous year, indicating strong demand and effective cost management.
During 2024, Etalon Group managed to conclude new contracts for the sale of real estate, totaling 699,000 square meters. The total value of these contracts reached an impressive 146 billion rubles, reinforcing the company’s growth trajectory.
The ratio of net corporate debt to EBITDA stands at 2.5x, favorably within the target range of up to 3x as of December 31, 2024. This financial stability is essential for supporting future expansions and operations.
“Thanks to our flexible business model and quality project portfolio, we were able to significantly increase sales in 2023-2024 despite changing market conditions,” a spokesperson from Etalon Group stated. This assertion clearly illustrates the organization's adaptability and strategic foresight in navigating a complex landscape.
Further enhancing their operational strength, the company has reported a consistent double-digit growth across various financial metrics. “The excellent growth rates of the operating business even in a challenging market are reflected in the strong double-digit growth of most financial metrics,” the spokesperson explained, emphasizing their efficient project management and execution.
Funds accumulated in escrow accounts have also reached approximately 112.3 billion rubles, providing a robust coverage ratio of project debt with escrow funds at 1.1x. Such financial figures allow Etalon Group to secure favorable financing rates for ongoing and future projects.
Despite the external pressures posed by high interest rates impacting net profits, the company maintains core debt ratios within target levels. The average interest rate for the debt portfolio was reported at 11.5% as of the end of 2024. “We remain resilient enough to successfully navigate the current phase of the economic cycle while continuing to develop projects and increase revenue,” the spokesperson added, demonstrating confidence in their fiscal strategies amid economic challenges.
Founded in 1987, Etalon Group has evolved into a major player in the Russian real estate market, focusing on the development of residential properties for the middle class. Over the years, the company has expanded its footprint significantly, now engaging in projects outside its traditional markets, such as in Kazan and Yekaterinburg, with an extensive sales network covering 35 regions across Russia.
As of December 31, 2023, the value of Etalon Group's assets was estimated at 303 billion rubles, according to Nikoliers, further highlighting its position as a strong competitor. Since its inception, the company has completed 9.2 million square meters of residential properties, establishing a solid foundation and sustained growth potential.
In conclusion, the financial results reported for 2024 not only reflect Etalon Group's successful operational strategies but also reinforce its status as a resilient leader within the residential construction sector. As the company looks ahead, maintaining this upward trajectory in both revenue and profitability will be paramount for continuing to capitalize on new opportunities in the evolving real estate market.
