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PIK GROUP reports 1H2019 consolidated financial results

Moscow, August 29, 2019 — PIK Group, the leading Russian residential developer, today announces its unaudited Consolidated Financial Statements prepared in accordance with IFRS for the six months ended June 30, 2019.

1H2019 Financial Highlights:

  • Total revenue increased by 7.4% to RUB 103.6 billion (1H2018: RUB 96.5 billion).
  • Revenue from sale of real estate recognized under historical value increased by 24.5%, while Revenue from sale of real estate recognized under fair value decreased by 32.6%;
  • Revenue from other segments increased 4 times and amounted to RUB 13.5 billion, mostly due to construction services and fee-development.
  • Gross profit margin amounted to 21.8%, gross profit margin from sale of real estate amounted to 22.4%, while Gross profit margin from sale of real estate recognized under historical value amounted to 28.7%; Gross profit margin from other segments amounted to 17.8%;
  • EBITDA increased by 50% to RUB 17.0 billion (1H2018: RUB 11.3 billion). EBITDA margin increased to 16.4% (1H2018: 11.7%);
  • Adjusted EBITDA increased by 7% to RUB 12.8 billion (1H2018: RUB 11.9 billion)
  • Net income for the period increased almost 5 times and amounted to RUB 7.4 billion (1H2018: RUB 1.6 billion);
  • Cash flow from operations before income taxes and interest, acquisition and sale of development rights and prepayments for development rights amounted to RUB 2.2 billion.
  • Net debt as of June 30, 2019 amounted to RUB 50.0 billion (with cash on escrow accounts), including project financing in the amount of RUB 20.4 billion.

Commenting on the operating results, Sergei Gordeev, President of PIK Group, said:

«In the first 6 months of 2019, PIK showed excellent financial performance. The company's revenue reached almost 104 billion rubles, EBITDA increased by 50%, net profit increased almost 5 times.

High construction rate — completions in the first half of 2019 almost doubled compared to the same period of 2018 — will continue in the second half of the year. In 2019, PIK plans to complete more than 2 million square meters, which is a record indicator for the company and the entire industry. To replenish the land bank, PIK acquired projects with a combined net selling area of almost 1 million square meters in the current regions of presence.

Despite being allowed to remain within the previous legislation framework, PIK among the first companies in the industry began a gradual and smooth transition to project financing, thereby once again confirming its reliability and leading position in the market. To date, the company has received approval for the provision of project financing for the construction of more than 1 million square meters.

The company has successfully adapted to the new legislation requirements, which, of course, creates the prerequisites for increasing its market share and increasing shareholder value, while PIK confirms the commitment of its development strategy as a public company. Implemented innovative digital services, as well as proprietary IT solutions actively developed by the Company create additional opportunities for the growth of PIK business efficiency.»

The Consolidated Financial Statements, prepared in accordance with IFRS, for 6 months ended June 30, 2019 can be found under the following link

Conference call details:
Date: August 29, 2019
Time: 16:00 Moscow / 14:00 London / 09:00 New York
Title: PIK Group 1H2019 IFRS results
Passcode: 29524011#
Domestic line: +7 495 646 93 15
UK international tel.: +44 207 194 37 59

Enquiries:

PIK Group
Investors 

Polina Kurshetsova
Tel: +7 495 505 97 33 ext. 3785
E-mail: ir@pik.ru

Media

E-mail: media@pik.ru