In 9m of 2019, the company observed a 2% decrease in operating revenues, a decrease of 36% in EBITDA and a decrease of 72% in net profit.
In the first nine months of 2019, Končar recorded sales of HRK 1.87bn, representing a 1% increase YoY. Meanwhile operating revenues amounted to HRK 1.94bn, which is a decrease of 2%. The mentioned decrease could be attributed to the prolongation and blockade of several significant deals, which include the construction of a hydroelectric power plant in Bosnia and Herzegovina and a delay in the contract realization of equipment to an Iranian buyer (due to sanctions implemented to Iran).
On the domestic market, Končar recorded sales of HRK 721.2m, accounting for 38.6% of the total sales. There, sales of goods and services to HEP account for the majority of the sales.
On the foreign market, Končar recorded sales of HRK 1.15bn, accounting for 61.4% of the total sales. The most significant exports were made to Germany, Sweden, Austria, United Arab Emirates and Hungary.
For the FY 2019, the company expects to record sales of HRK 3.1bn (+8% YoY).
Operating expenses amounted to HRK 1.92bn, representing an increase of 1% YoY. Consequently, EBITDA observed a decrease of 36%, amounting to HRK 87m. EBITDA margin stood at a low 4.5%, representing a decrease of 2.4 p.p. YoY. Meanwhile, D&A remained flat at HRK 68.4m.
Going further down the P&L, operating profit amounted to HRK 18.6m, representing a sharp decrease of 73% YoY.
In 9m 2019, the company observed a net financial gain of HRK 3.6m, compared to a loss of HRK 7.13m in 9m 2018, which helped lessen the decrease of the net profit for the period.
Net profit amounted to HRK 20.1m, representing a decrease of 72% YoY. Such a decrease could be attributed to the lower topline performance compared to the previous period.