KONČAR Group’s successful 2023
For KONČAR Group, the business year 2023 was extremely successful.
Gordan Kolak (Image credit: Davor Puklavec, Pixsell)
Croatia, Zagreb: Despite the challenges that the global economy has been facing, KONČAR Group achieved excellent business results exceeding the high targets set at the beginning of 2023. Rapid adjustments of development, production, and business processes to the new era of electrical energy resulted in a record number of new orders.
Growth in key business indicators was achieved by all business segments, especially the electricity transmission and distribution segment. The continued demand for transformers led to great results. Advancements were achieved in other business areas. Of €1.31 billion in newly contracted jobs, as much as 76.6% relates to exports. KONČAR secured several new orders, particularly in the markets of Germany, Sweden, Austria, Norway, and the Netherlands. Growth in contract volume was also experienced in other markets, notably the United States, where new jobs were contracted for a total of €30.9 million. The backlog amounts to €1.42 billion, with emphasis that the order book is also filling for the year 2025, for which new jobs worth €465.2 million have already been contracted.
Revenue growth generated excellent financial results. Consolidated revenues from the sale of products and services amounted to €901.1 million, a 28% increase compared to 2022. The export share is high, accounting for over 65% of total sales revenues. Compared to the same period last year, revenues from the sale of products and services in exports increased in all markets, with the most significant increase in revenues recorded in the EU, where exports increased by €113.5 million. Exports to EU countries amounted to €426 million, 73% of total exports.
“Despite positive trends, 2023 was marked by global events that inevitably had an impact on business. However, we enter the new business year with justified optimism and expect further business growth and good results. The goals remain the same – revenue growth, particularly from exports, further investments in equipment and new product development, and investments in human resources, lifelong learning, and professional development as prerequisites for achieving all set goals,” emphasized Mr. Gordan Kolak, President of the KONČAR Management Board.
The sales results enabled growth in profitability. The reported net profit amounted to €73.2 million, 48.9% more than in 2022. Normalized net profit amounts to €86 million, double compared to 2022. Normalized EBITDA amounts to €111.3 million, 83.8% more than in 2022. The normalized EBITDA margin is 12.4%, while in the same period last year, it was 8.6%.
Source: KONČAR Group