Croatian Koncar Group Earns 124% Higher Net Profit in First Half of 2021

Lauren Simmonds

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As Novac writes, in the first half of the year, the well known Croatian Koncar Group generated an impressive net profit of 74.3 million kuna, which is an increase of 41.2 million kuna or 124.3 percent when compared to the same period last year, according to the company’s financial report published on Thursday.

“The Croatian Koncar Group ended the first half of 2021 with excellent results and all key business indicators show growth compared to the same period last year,” said Gordan Kolak, President of the Management Board of Koncar Elektroindustrija, in a comment on the aforementioned financial report.

In that period, consolidated operating revenues grew by 18.3 percent to 1.6 billion kuna.

According to the data from the financial report, the companies operating under the wider umbrella of the large Croatian Koncar Group generated consolidated revenues from the sale of products and services in the amount of 1.6 billion kuna in the first half of the year, which is 251.9 million kuna or 18.8 percent more than in the same period last year.

Revenues here on the Croatian market amounted to 609.5 million kuna, which is 37.3 percent more, while revenues from sales to foreign markets increased by 9.6 percent, to 983.6 million kuna. Thus, the share of exports in total revenues from sales of products and services stands at 61.7 percent.

The most significant exports were realised on the demanding German market, amounting to 181.6 million kuna or 18.5 percent of total exports, followed by Sweden, to which goods and services were exported in the amount of 145.4 million kuna or 14.8 percent of total exports, and then Austria with 78.8 million kuna or 8 percent of total exports.

Koncar pointed out that in addition to sales, excellent financial results were achieved – EBITDA amounted to 129.7 million kuna and was higher by 46 million kuna when compared to the first half of last year, and their EBITDA margin amounted to 8.1 percent (in the same period last year it stood at 6.2 percent).

Operating profit amounted to 81.3 million kuna, while the Croatian Koncar Group’s net consolidated result amounted to 74.3 million kuna, which is 41.2 million kuna more than in the same period last year.

In the first half of the year, the companies of the wider Koncar Group contracted new business (contracts) in the amount of 2.2 billion kuna, which is 691.8 million kuna or 46.5 percent more new business compared to last year. Of the total amount of contracted work, 956 million kuna (43.9 percent of the total contracted work) was contracted for the domestic market, and 1.12 billion kuna (56.1 percent of the total contracted work) referred to export contracts.

The backlog at the end of June amounted to 4.8 billion kuna, which is 13.8 percent more than at the beginning of the year.

The sales revenue plan is fully covered by the contracted works, and by the end of the year, the contracting of new works for realisation in 2022 and the following years is expected. At the end of the first half of the year, the backlog for realisation in the following years amounts to 3 billion kuna, it is stated.

The further growth of newly contracted business in the first half of the year, the balance of contracted business (backlog) and the growth of all business indicators are a reflection of a series of activities undertaken by the Croatian Koncar Group in this very complex economic situation, said Kolak.

He also pointed out that in an environment that still contains many uncertainties related to the coronavirus pandemic, they have shown resilience and focus on business partners, employees, production and commercial activities and are satisfied with what has been achieved in the first six months of this business year.

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