LSR Group reports its operating results for the first half of 2020
New contract sales remained broadly flat YoY in Rub terms
with a 5% YoY increase in average price per sqm
St. Petersburg, Russia - 21 July 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 operating results for the second quarter and the first half ended 30 June 2020.
1H 2020 Highlights:
- New contract sales stood at RUB 38 billion (346 th. sqm), broadly flat YoY;
- Average price per sqm increased by 5% year-on-year reaching RUB 119,000;
- Share of mortgage sales amounted to 58%, compared to 48% in the first half of 2019;
- 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;
- Solid performance of the building materials segment, in line with management expectations;
- Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of PJSC LSR Group at 'B+' with a Stable Outlook.
Andrey Molchanov, CEO of PJSC LSR Group, commented:
"I am pleased with LSR Group performance in the first half of 2020. Despite the operational difficulties in light of the Covid-19 outbreak, we achieved a YoY new contract sales growth in Saint Petersburg and Yekaterinburg, the two regions where the quarantine measures introduced were far less strict relative to Moscow.
I am happy to report that our online sales platform proved efficient in meeting customer demands during the second quarter of 2020.
The mortgage rate subsidy programme continues to support demand and, considering the recent increase in the loan principal value to RUB 12 million in Moscow and Saint Petersburg, we expect to see an even greater share of mortgage sales in the months to come, having already reached a record 67% in the second quarter of 2020.
LSR Group sales have now fully returned to pre-crisis levels and we remain well positioned to continue executing on our strategy, with a strong balance sheet and access to liquidity secured."
Full version of the press release is available in PDF-format (link below) and on www.lsrgroup.ru
For more information please contact:
Director of Investor Relations and Sustainable Development
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 the Leningrad Region, Moscow and the Moscow region and Yekaterinburg. As at 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).