Končar Adopts 2023 Business Plan

Končar plans to realize a revenue of EUR 760m in 2023, with the value of backlog at the end of 2022 expected at EUR 1bn. Order intake for 2023 is forecast at above EUR 610m.

At the Supervisory Board session held yesterday, 15 December 2022, the consolidated Business Plan of Končar Group for 2023, at the proposal of the Company’s Management Board. The Company notes that the plan for the next year was prepared in uncertain and complex global circumstances impacted by the pace of the industrial post-Covid recovery, the duration of the Russian aggression against Ukraine, and the ensuing energy crisis and inflation trends. Despite these circumstances, further growth and development are expected by the Company in 2023.

According to the Company, on the basis of good order intake at the end of 2022, Končar Group plans to realize over EUR 760m in income in 2023. The value of the backlog at the end of 2022 is expected to reach EUR 1bn. Order intake for 2023 is forecast in the amount above EUR 610m, indicating that it accounts for 80% of the planned income from sales of products and services. Exports, primarily to European Union countries, continue to dominate in the total income. The majority of the planned EUR 434m income realized in the foreign markets is planned from Sweden, Germany, Spain, and Austria. Compared to the previous years, the export plan to Norway has significantly expanded, primarily as a result of the integration of Dalekovod into the Končar Group.

In addition to growing the income side, one of the four strategic goals set out in the Končar Group 2020+ Strategy is an investment in the development of products, technologies, and manufacturing capacities as the driver for the realization of sales planes. The Company notes that the investment cycle continues in 2023, with a focus on investments in new equipment and machinery. Energy transition and green CAPEX result in investments in improved energy efficiency and working conditions, primarily investments in photovoltaic power plants and the use of renewable energy sources. Investment in research and development is recognized as a long-term investment with the aim of creating a sustainable and profitable business and building up new competencies, which will contribute to the stability and further growth of the Končar Group.

The most significant planned projects include the continued development of environmentally friendly products in power engineering, the development of equipment and components for battery and hybrid trains, and projects in the field of digital technologies. The 2023 investment plan amounts to more than EUR 60m.

Investments in human resources, lifelong learning, professional development, and upskilling remain the Company’s priority goals. In 2023, EUR 1.2m is allocated toward learning and training costs. The Group plans to hire 205 new people, primarily highly educated employees, which would bring the total headcount to 4,885 by the end of 2023.

Category : Flash News

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