Europe | October 28, 2022

KONČAR continues achieving good business results

KONČAR Group, Croatian power engineering company, ends Q3 2022 with $84.4 M growth in consolidated income from the sales of products and services year-on-year.

 

KONČAR acquires Telenerg

Image source: KONČAR Group

Croatia, Zagreb: KONČAR Group, the largest Croatian exporter and the regional leader in power engineering ends Q3 2022 with $84.4 M (HRK 635.9 M) or 26.4 % growth in consolidated income generated from the sales of products and services year-on-year.

The majority of the income, 61.1 %, is generated in foreign markets, which represents the backbone of KONČAR’s operations. Excellent sales results are matched with good financial performance. The consolidated net profit of KONČAR Group amounts to $36.8 M (HRK 277.3 M), up by $16.44 M (HRK 123.9 M) or 80.7 % year-on-year.

Despite unprecedented global challenges and market uncertainties, KONČAR Group ends Q3 2022 with good business results, which are reflected in growing income, a significantly higher order intake, greater net profit and realized EBITDA. The integration of Dalekovod resulted in an upturn in sales income of $59.6 M (HRK 524.3 M) and it now reaches $472.9 M (HRK 3,562.7 M). Income generated in the domestic market amounts to $157.2 M (HRK 1,184.2 M), which is $35.6 M (HRK 268.1 M) (29.3 %) growth year-on-year. Sales in the domestic market account for 38.9 % of the total sales income. Income generated from the sales of products and services in foreign markets amounts to $247.2 M (HRK 1,862.3 M), representing a gain of $48.8 M (HRK 367.8 M) or 24.6 % year-on-year. Exports account for 61.1 % of the total product and service sales income.

Year-over-year, product and service export income increased across all markets. The most significant growth in exports was realized in the EU market with an expansion of $28.7 M (HRK 215.9 M). Exports to the European Union countries amount to $178.3 M (HRK 1,343.4 M) and account for 72.1 % of the total exports.

Finally, EBITDA amounts to $49.6 M (HRK 373.7 M), representing an increase of $19.8 M (HRK 144.8 M) compared to the period Q1-Q3 2021. EBITDA margin is 12.3 % (compared to 9.5 % in Q1-Q3 2021). Normalized EBITDA amounts to $29.1 M (HRK 219.5 M) and is $3.5 M (HRK 26.2 M) higher year-on-year. Normalized EBITDA margin is 7.2 %. The integration of Dalekovod resulted in an EBITDA upturn in the amount of $3.3 M (HRK 24.6 M) and it now reaches $52.9 M (HRK 398.3 M).

“Our results come on the back of tailwinds in the face of all negative and complex macroeconomic conditions that businesses have been experiencing in the last two and half years. The war in Ukraine and economic sanctions against Russia add on to the consistent pressures from supply chain disruptions. In such an uncertain and volatile environment, KONČAR Group management was agile to respond and organize efficient and better operations that can absorb unprecedented external shocks. Encouraging indicators that boost optimism are the growth of order intake and book-to-bill ratio. In an environment where forecasting options have been increasingly precarious, we expect to end the business year on plan. Moving forward into the next year, our priority is to maintain export orientation and an upward growth trajectory while boosting profitability and continuing the rolled out investment cycle”, said Gordan Kolak, President of the Management Board.