LSR Group announces financial results for the first half of 2020

 

• Reported revenue increased 3% year-on-year and reached RUB 48,101 million
• Net income up 38% year-on-year totaling RUB 2,573 million

 

St. Petersburg, Russia - 28 August 2020 - PJSC LSR Group ("LSR" or the "Company") (LSE: LSRG; MOEX: LSRG), one of the leading real estate developers and building materials producers in Russia, today announces its audited consolidated IFRS results for the first six months ended 30 June 2020.

1H 2020 Financial Highlights:

 

• Revenue reached RUB 48,101 million, up 3% year-on-year;
• Adjusted EBITDA increased by 17% to RUB 9,162 million due to strong revenue growth of 31% year-on-year in the North-West real estate and construction business unit along with effective cost management, as well as the positive dynamics in the building materials segment driven by multiple factors;
• Adjusted EBITDA margin improved to 19%;
• Profit for the first six months of 2020 increased by 38% to RUB 2,573 million on the back of strong operating profit dynamics and lower income tax recognized in the reporting period;
• Earnings per share of RUB 25.68;
• Operating cash flow of RUB 3,646 million;
• Cash balance of RUB 67,011 million versus RUB 66,859 million as at the year-end of 2019;
• Net debt amounted to RUB 27,178 million (total debt: RUB 94,189);
• Net debt/ adjusted EBITDA ratio of 1.21;
• Average cost of debt declined from a year-end 2019 level of 8.5% to 7.6% as at the end of June 2020.

 

Events during and after reporting period:

• New contract sales stood at RUB 38 billion (346 th. sqm), broadly flat year-on-year with an average price per sqm up 5% year-on-year to RUB 119,000;
• Completions reached 172 th. sqm of net sellable area, up 8% year-on-year and in line with the projects schedule;
• New 467 th. sqm of net sellable area launched in the reporting period;
• ZILART was recognized as the best residential complex in Russia according to the results of the annual competition of housing construction;
• In July, Fitch Ratings affirmed the Long-Term Issuer Default Rating (IDR) of PJSC LSR Group at 'B+' with a Stable Outlook;
• In August, LSR Group's Board of Directors established Sustainability Committee to enhance its sustainability efforts and ensure compliance with international guidelines and principles with a focus on long-term value creation for shareholders.

 

 

Andrey Molchanov, CEO of PJSC LSR Group, commented:

 

"I am delighted with the financial performance of LSR Group in the first half of 2020, which reflected the strengths of our business and our ability to maintain leading market positions despite challenges related to the COVID-19 outbreak. We rapidly adapted our business processes to a new reality and we were able to maintain an acceptable sales and construction dynamics, which helped us to increase our revenue by 3% year-on-year to RUB 48.1 billion.

Operating profit increased by 16% to RUB 6.7 billion thanks to particularly strong revenue dynamics of the real estate development and construction business in St. Petersburg and our effective cost management in the reporting period. EBITDA margin improved to 19%, while net income surged 38% year-on-year to RUB 2.6 billion.

We secured solid financial position with a substantial cash balance of RUB 67.0 billion as at the end of 1H 2020.

Given the strong results for the first six months of the year, I am confident that LSR Group is well positioned to continue achieving its strategic goals and to further strengthen its market position in the key regions of presence."

 

Full version of the press release is available in PDF-format (link below) and on

For further information, please visit or contact:

Igor Tsoy

Director of Investor Relations and Sustainable Development

E-mail:

About LSR Group:

PJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials and real estate development and construction. LSR Group's main operations are located in St. Petersburg and Leningrad Region, Moscow and Moscow region and Yekaterinburg. As of 31 December 2019 (according to Knight Frank), the net sellable area of projects in LSR Group's real estate portfolio amounts to 7.6 million m2 with the market value of RUB 207 billion.

In accordance with its audited IFRS consolidated financial statements for 2019, LSR Group reported revenue of RUB110.4 billion, Adjusted EBITDA of RUB21.0 billion and Net Profit of RUB7.5 billion.

Ordinary shares of the Company are traded on the Moscow Exchange (MOEX: LSRG) and GDRs representing its ordinary shares are traded on the London Stock Exchange (LSE: LSRG).

 

Adjusted cash flow from operations before income taxes and interest paid, including cash in escrow accounts received during the reporting period

Cash balance, including cash in escrow accounts

Including cash in escrow accounts