KONČAR achieves record results
KONČAR has continued its trend of growth in the second quarter of 2024, closing the first half of 2024 with new business milestones.
Mr. Gordan Kolak, President of the KONČAR Management Board (Image credit: KONČAR Group)
Croatia, Zagreb: KONČAR has continued its trend of growth in the second quarter of 2024, closing the first half of 2024 with new business milestones. Consolidated revenues from product and service sales reached €478.7 million, an increase of 25% compared to the same period in 2023. Successes were also achieved in exports, which increased by 37%, reaching €351.3 million and accounting for 73.4% of total product and service sales revenues. Newly contracted projects amounted to €866.2 million, while the order backlog set a record at €1.8 billion.
The most significant increase in export revenue was seen in the EU market, where exports rose by €82.4 million, amounting to €274.9 million (78.2% of total exports). Within KONČAR Group’s business segments, the largest growth was in the power transmission and distribution sector, notably KONČAR – Distribution and Special Transformers, as the energy transition has resulted in high demand for transformers.
Strong sales results have led KONČAR to achieve record net profit and EBITDA, along with corresponding margins. The net profit was €73.8 million, €48.0 million higher than in the same period in 2023. EBITDA was €90.5 million, €53.8 million higher than in 2023, with an EBITDA margin of 18.9%, up 9.3% from 2023.
“Strategic and operational changes in recent years, along with timely adaptation to the new era of energy, have resulted in outcomes several times higher than those achieved four years ago. We are particularly pleased that the amount of newly contracted projects and backlog continues to grow, ensuring further growth and giving us a solid basis for optimism in the coming period. The green and digital transformation also requires additional investments in developing solutions, products, and services,” said Mr. Gordan Kolak, President of the KONČAR Management Board.
In Q2 of 2024, financial advancements were complemented by contracts of strategic importance. These include the €80 million contract for the revitalization of the Vidraru hydroelectric plant in Romania, a €14.2 million contract with the Croatian Transmission System Operator (HOPS d.d.) for equipment delivery and works on the reconstruction of the Velebit reversible hydroelectric plant, and the selection of Dalekovod as the most competitive bidder for the construction of a new 420 kV transmission line on the Vik-Sogndal section in Norway, worth over €14 million.
Source: KONČAR Group