Source - EQS

PJSC PIK Group / Half-yearly Results
PJSC PIK Group: 1H2016 CONSOLIDATED FINANCIAL RESULTS (news with additional features)

30-Aug-2016 / 10:37 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EquityStory.RS, LLC - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.



Moscow, August 30, 2016 - PIK Group (LSE: PIK), ('The Group' or 'PIK'), one of the leading Russian residential developers, today announces its unaudited Consolidated Financial Statements prepared in accordance with IFRS, for the 6 months ended June 30, 2016.

1H2016 Financial Highlights:

- Total cash collections increased by 39.5% to RUB 41.8 billion (1H2015: RUB30.0 billion);

- New sales contracts to customers increased by 77.6% to 405 th. sqm.
(1H2015: 228 th. sq. meters);

- Transfers of real estate to customers increased by 2.6% to 196,000 square meters (1H2015: 191,000 square meters)

- Total revenue decreased by 14.2% to RUB18.9 billion (1H2015: RUB22.1 billion). Revenue from sale of real estate decreased by 15.5% to RUB15.7 billion
(1H2015: RUB18.6 billion);

- Gross profit margin amounted to 29.2% (1H2015: 39.4%);

- Adjusted EBITDA decreased by 57.4% to RUB3.0 billion (1H2015: RUB7.1 billion). Adjusted EBITDA margin amounted to 15.9% (1H2015: 32.0%);

- Net profit for the year amounted to RUB1.7 billion
(1H2015: RUB4.1 billion);

- Net cash flow from operations amounted to RUB2.0 billion (1H2015: RUB3.8 billion);

- Net debt as of June 30, 2016 was negative and amounted to (RUB6.6 billion) (December 31, 2015: negative (RUB3.9 billion);

Additional documents:
The Consolidated Financial Statements, prepared in accordance with IFRS, for 6 months ended June 30, 2016 can be found under the following link:

Conference Call Dial-In Details:

PIK Group's Management will host a conference call for investors and analysts followed by a Q&A session.

Date: Wednesday, August 31, 2016
Time: 15:00 Moscow / 13:00 London / 8:00 New York
Title: PIK Group 1H2016 IFRS Results
Conference ID: 8770958
Domestic line: +7 495 213 0979
UK international tel.: +44 20 3427 1913


PIK Group

Investors Media
Polina Kurshetsova Natalia Mikhna
Tel: +7 495 505 97 33 ext. 3785 Tel: +7 909 913 14 70
E-mail: [email protected] E-mail: [email protected]


Management review of financial condition for the 6 months ended June 30, 2016

Group revenues in 1H2016 decreased by 14.2% to RUB 18.9 billion compared to RUB22.1 billion in 1H2015. The decline was driven by lesser amount of high margin projects recognized in the reported period. Revenues from real estate sales accounted for 83.2% of total revenues compared to 84.4% in 1H2015.

Sales revenue by segment

In RUB billion 1H2015 1H2016 Change, %
Revenue from sale of real estate 18.6 15.7 (15.5%)
Revenue from construction services 1.2 1.2 2.2%
Revenue from sale of construction materials and other sales 2.2 2.0 (12.9%)
Total revenue 22.1 18.9 (14.2%)

Source: IFRS

PIK Group's core revenues come from the sale of apartments. In 1H2016, they were 15.5% lower due to absence of high margin Moscow projects recognized in the revenues. The implied revenue per square meter decreased by 17.6% to 80.3 thousand rubles.

Implied revenue per sq. meter of transferred properties (1)

  1H2015 1H2016 Change, %
Revenue from sale of real estate, RUB bn 18.6 15.7 (15.5%)
Transfers to customers, 000' sqm 191 196 2.6%
Implied revenue per sq. meter of transferred property, 000' RUB/sqm 97.5 80.3 (17.6%)

Note: (1) calculated as revenue from apartment sales divided by transfers to customers
Source: IFRS

Gross profit decreased by 36.5% to RUB5.5 billion from RUB8.7 billion. The Group's gross profit margin decreased to 29.2% from 39.4% in 1H2015 due to lower margin of the development segment.

In 1H2016, administrative expenses increased by 14.5% and amounted to RUB1.4 billion (1H2015: RUB1.2 billion).

Factors above resulted that adjusted EBITDA from core activities decreased by 57.4% to RUB3.0 billion from RUB7.1 billion in 1H2015, whilst adjusted EBITDA margin decreased to 15.9% from 32.0%.

Adjusted EBITDA reconciliation

    1H2015   1H2016
    RUB mln   RUB mln
Net profit for the year   4,080   1 667
Depreciation and amortization   353   586
Interest expense   1,490   1 002
Interest income   (891)   (1 036)
Income tax expense   1,100   293
EBITDA   6,132   2 512
Adjustments   926   493
Adjusted EBITDA   7,058   3 005
Adjusted EBITDA margin, %   32.0%   15.9%

Source: IFRS

As a results of the above factors, profit for the period (net profit) decreased to RUB1.7 billion from RUB4.1 billion.

Discussion of Group's current financial position, cash flows and liquidity

Net cash from operating activities in 1H2016 reached RUB2.0 billion (1H2015: RUB3.8 billion).

As of June 30, 2016, the Group had RUB13.2 billion of gross debt (as of December 31, 2015 - RUB13.2 billion). Net debt as of June 30, 2016 was negative and amounted to (RUB6.6 billion), down from negative (RUB3.9 billion) at the end of 2015.

Directors' Responsibility Statement

The attached Financial Report (Consolidated Financial Statements) and the financial information contained herein, are the responsibility of, and have been approved by, the directors of PIK Group. The directors are responsible for ensuring that management prepares the Financial Report in accordance with the IFRS and the Listing Rules of the Financial Conduct Authority.

Notice to readers

The calculation of certain measures used in this announcement may be different from the calculation used by other companies and therefore comparability may be limited. Some of the measures (e.g. EBITDA, adjusted EBITDA, normalized net income, net debt, free cash flow) are not measures of financial performance under IFRS.

Some of the information in this press release may contain guidance, projections or other forward-looking statements regarding future events or the future financial performance of PIK Group. You can identify forward-looking statements by terms such as 'expect,' 'believe,' 'anticipate,' 'estimate,' 'intend,' 'will,' 'could,' 'may' or 'might,' or the negative of such terms or other similar expressions. These statements are only predictions and actual events or results may differ materially. PIK Group does not intend to or undertake any obligation to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in PIK Group's projections, guidance or forward-looking statements, including, among others, general economic and market conditions, PIK Group's competitive environment, risks associated with operating in Russia, rapid market change, and other factors specifically related to PIK Group and its operations.

This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of PIK Group, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of PIK Group.


Additional features:

Document title: PIK Group 1H2015 IFRS statements

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Language: English
Company: PJSC PIK Group
19 bld 1 Barrikadnaya Street
123242 Moscow
Phone: +7 (495) 505 97 33
Fax: +7 (495) 229 90 11
E-mail: [email protected]
ISIN: US69338N2062, RU000A0JP7J7
Listed: Foreign Exchange(s) London, Moscow
Category Code: IR
Sequence Number: 3363
Time of Receipt: 30-Aug-2016 / 10:37 CET/CEST
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497001  30-Aug-2016