Page 148 - RusRPTAug22

● Contract sales amounted to 53ths sqm in 2Q22 (-57% y/y; -41% q/q) – the lowest reading over the last 5 years, mostly driven by Moscow 25ths sqm (-68% y/y; -41% y/y), while sales in Saint Petersburg also fell – to 23ths sqm (-45% y/y; -51% q/q). New regions are getting more visible with first sales disclosure in 2Q22 – 4.5 ths sqm (8% of 2Q22 sales). 1H22 sales amounted to 143ths sqm (-35% y/y), mostly led by Moscow, but also sales down in Saint Petersburg.
● Contract sales in money terms were also contracting to Rb9.6bn (-61% y/y; -51% q/q) in 2Q22 with average selling price distorted by mix with Rb182ths/sqm (-11% y/y; -16% q/q), while firm pricing trends for apartments – average price at Rb294ths/sqm (+24% y/y). 1H22 contract sales amounted Rb29bn (-29% y/y) with Rb32.6bn cash collections (-20% y/y).
● Share of mortgage dropped to 25% overall and comprised 55% for apartments – quite a decline from 47% and 67% 2Q21, we attribute to the elevated level of interest rates.
● CEO highlighted in a press-release further replenishing of its project portfolio in key regions and in new markets, as well as focusing on business efficiency, also boosted by full integration of YIT Russia.
● Etalon maintains low level of debt, despite recent M&A deals with net corporate debt only at Rb6.1bn with net cash Rb25.8bn at the project level – according to CFO statement.
9.2.5 Retail corporate news
• Magnit
Magnit reported 2Q22 operating results on July 28. The results were generally decent, slightly above expectations.
● Magnit reported operating update instead of expected IFRS accounts (planned
● for report later). The reported revenue came in c1% above our projections.
● Total revenue grew 39% y/y to Rb589bn, with 19.7% y/y organic revenue increase and remaining 19pp due to Dixy consolidation factor. Organic growth
● remained strong amid accelerated food inflation.
● Selling space including Dixy consolidation factor grew 19% y/y (flat
q/q), while
● blended LFL sales were up 13%. LFL sales growth were driven by
ticket increase (+15% on the back of inflation), while LFL traffic declined 1.6%.
o Magnit convenience stores (c80% revenue) remained major revenue growth driver: +22% organically (+13.6% LFL sales).
o Drogerie format revenue (8% total) grew 25% y/y (+14.4% LFL
148 RUSSIA Country Report October 2020 www.intellinews.com