LSR sees 10% rise in 1H16 sales but 22% drop in EBITDA

Russia’s LSR Group reported a 10 per cent increase in sales in 1H16 to RUB31.618bn. However, EBITDA fell by 22 per cent to RUB4.486bn and the company’s EBITDA margin stood at 14 per cent. Profit for the period decreased by 72 per cent to RUB1.1bn. The company’s net debt/EBITDA ratio was 1.09, according to a company press release.

Andrey Mochanov, CEO and chairman of the Executive Committee of LSR Group, said: “The first half of 2016 brought many positive changes for us. The real estate market demonstrated recovery on the back of bottoming out economic environment and mortgage subsidy program. We have successfully expanded our presence in Moscow and saw increasing demand in our projects in the capital. We have strengthened our reputation as a reliable homebuilder of mass-market and elite projects in the home region. We have implemented a number of important organisational and structural changes, including the approval of the new financial strategy, which are focussed on delivering sustainable predictable growth over the long term. We are open to change, and are committed to maximising shareholder value."