KONČAR Group on the verge of its third consecutive record year
Croatia's largest net exporter, the KONČAR Group, is on the brink of its third consecutive record year.
Gordan Kolak, KONČAR CEO
Croatia, Zagreb: Croatia’s largest net exporter, the KONČAR Group, is on the brink of its third consecutive record year.
This can be seen in the group’s business results from the first nine months of 2023. Consolidated revenues from the sale of products and services amounted to €601.1 million, an increase of €128.2 million (27.1%) compared to the same period last year. Of this amount, export revenues account for 67%. High expectations are justified by the backlog, which has increased by 45% to a record €1.412,7 million.
All business segments of the KONČAR Group achieved growth in revenue and profit, with the electricity transmission and distribution business particularly standing out. In this area, KONČAR successfully maintains its status as a regional leader and strengthens its role as a relevant European manufacturer of high-tech products and solutions the green energy transition in the EU. In addition to accounting for a high 67% of total sales revenues, export results continued to grow in all markets, including an EU market increase of €60.1 million.
Excellent sales results enabled further growth in KONČAR’s profitability, with a reported net profit of €48.3 million, 29.8% more than last year’s achievement. The normalized net profit increased by €23.7 million, more than doubling compared to the same period last year, with a total value of €40.4 million. Furthermore, the normalized EBITDA is €56.1 million, a 73.7% increase compared to the normalized EBITDA achieved for the first nine months of 2022.
“Along with excellent financial results, we are especially pleased with the state of newly contracted jobs that exceeded one billion euros, mainly in markets outside Croatia. Decades of reliability and trust have secured us a record amount of new orders, especially in the demanding markets of Germany, Sweden, and Austria. The backlog is €1.412,7 million, and it should be emphasized that by the end of September, the amount of contracts that will generate revenue next year reached €741 million. The steps taken are the result of changes and activities we have launched in the last four years, with a focus on adapting to market trends and needs and investing in people. By the end of the year, we expect revenues to exceed our plans,” emphasizes Gordan Kolak, CEO of KONČAR.
KONČAR also highlighted an important success on domestic soil: an €18.5 million contract for the procurement of 10 new low-floor trams for the modernization of the tram fleet in Osijek with the Gradski prijevoz putnika (Osijek Passenger Transport). In terms of exports, it should be emphasized that a larger part of the tender was secured in a competition between renowned European manufacturers of power transformers for the German and Swedish branches of the E.ON Group, worth €50 million.
At the Supervisory Board and Management Board meeting held on October 31, in addition to accepting the business results for January-September 2023, the offer of the company Construction Line Limited (CL) was also accepted to buy a stake in the company Napredna energetska rješenja (NER, Advanced Energy Solutions), which owns 75.16% of the shares of the company Dalekovod.
Source: Končar