Europe | April 28, 2023

KONČAR Group concludes Q1 2023 with record backlog of $1.3 B

Croatia, Zagreb: Croatian electrical equipment manufacturer KONČAR Group has published its business results for Q1 2023.

 

KONČAR flags

Image source: KONČAR Group

Croatia, Zagreb: Croatian electrical equipment manufacturer KONČAR Group has published its business results for Q1 2023.

The company has reported a continuing growth of all indicators, listing order intake in the amount of $445.98 (€404.7 M) to be twice as high as in the same period last year. The release particularly emphasizes the backlog that has reached a record figure of $1.32 B (€1.2 B) or $256.8M (€233.1 M) higher than at the end of 2022, thus representing a foundation for further company growth in the following quarters.

“The customers, primarily those in the demanding market of the European Union, have recognised the quality and reliability of KONČAR’s solutions, and the reputation built over the years has prompted a record number of orders. Although the prices of energy and raw materials are stabilizing, and inflationary pressures are easing, uncertainty continues, which largely depends on the further course of the war in Ukraine. In the case of KONČAR, financial stability and excellent contracts enable further business growth, the continuation of the investment cycle and persistence in the further implementation of the Integral Strategy of the KONČAR Group. This year, we plan to continue the investment cycle that we have already started with investments in the amount of over €60 M,” said KONČAR’S Management Board President Gordan Kolak.

In the press release, the company also stated that despite the strong expansion of sales income across all segments and all markets, pressures on profitability continued throughout the first quarter of 2023. Surging prices of commodities, services and energy have reflected on profit margins. The reported profit before taxes, interest and depreciation (EBITDA) decreased by 15.2 % compared to the same period last year, while the reported operating profit was realized in the amount of $11.8 M (€10.7 M), i.e., lower by $4.7 M (€4.3 M).

 

Source: KONČAR Group