Last week was marked by the publication of unaudited 2024 reports from ZSE-listed companies, including Končar D&ST [KODT CZ, KODT2 CZ] on Monday, serving as a foreshadowing for the Končar Group [KOEI CZ] release on Wednesday. Therefore, we are bringing you an overview of Končar D&ST’s 2024 performance.
Starting with revenue, the Group’s total operating revenue amounted to EUR 475m, reflecting a 37.9% YoY increase, driven by strong demand due to intensive investments in decarbonization projects, renewable energy sources and electric mobility, particularly in the EU market. Sales reached EUR 467.5m (+36.7% YoY), accounting for 98.4% of total operating revenue. Furthermore, export sales amounted to EUR 446.8m (+43.8% YoY), increasing their share in total sales by 4.8 p.p. to 95.6%, highlighting the Group’s strong export orientation, favorable market positioning and solid reputation abroad.
Moreover, the order backlog increased 32% YoY, reaching EUR 822.4m, providing positive revenue outlook. Meanwhile, new orders in 2024 amounted to EUR 647.7m, reflecting a 4.4% YoY decrease. Consequently, the book-to-bill ratio declined from 1.98 to 1.39 in 2024.
On the cost side, operating expenses amounted to EUR 328.8m, increasing 19.3% YoY. The most significant increase came from employee costs (+42.4% YoY), driven by salary investments, bonuses and new hires. In contrast, material costs increased more moderately by 5.6% YoY, as the Group shifted to variable pricing contracts instead of fixed ones, a strategic move to protect future margins.
Due to revenue growth outpacing cost increases, EBITDA more than doubled, reaching EUR 146.3m, with a 31.3% EBITDA margin (+11.2 p.p. YoY). Normalized EBITDA rose 84.2% YoY to EUR 143.7m, while the normalized EBITDA margin stood at 30.7% (+ 7.9 p.p. YoY). Net profit to majority shareholders amounted to EUR 116.9m, reflecting a 116% YoY increase.
Končar D&ST key financial indicators (2024 vs 2023, EURm)
Source: Končar D&ST, InterCapital Research
Overall, Končar D&ST delivered another outstanding year, achieving robust growth in revenue, operating profitability and net profit. The Group’s strong presence in export markets underscores its recognized quality, strategic positioning and ability to capitalize on the green transition and rising demand for transformers. However, the Group acknowledges that the ongoing macroeconomic challenges in Germany and the EU could, if prolonged, negatively impact transformer demand.
