In 2021, the Group expects operating income to reach HRK 3.4bn, representing an increase of 10% compared to their current FY 2020 estimate.

Končar Group published yesterday their adopted 2021 business plan on the ZSE. The business plan for 2021 is based on the substantial number of contracts concluded, with which Končar ends the 2020 business year.

The value of transactions contracted (backlog) at the end of 2020 amounts to HRK 4.4bn, which represents a significant increase of c.31% since the beginning of the year when backlog stood at HRK 3.35bn.

In 2021, the KONČAR Group companies plan to generate operating income in the amount of HRK 3.4bn, which is a 10% increase compared to the business assessment for the current year. Revenue from sales in the Croatian market are planned to amount to HRK 1.4bn, which represents a 23% increase compared to the business assessment for 2020. The planned train delivery to HŽ Passenger Transport has a significant impact on the increase of revenue in the Croatian market. Further increase of export revenue is planned, in the amount of HRK 1.9bn. The share of export in total revenue from sales is 59%. The planned major export destinations are Germany, Sweden, Austria, Latvia, Hungary, North Macedonia and the United Arab Emirates.  The total planned value of newly contracted transactions in 2021 is HRK 3.1bn, with a share of 58% in the foreign market.

Končar further adds that despite the pandemic, the Group has proved to be resilient to the crisis, primarily due to the functioning of the entire system and due to the capabilities and dedication of its employees. Although the uncertainty regarding further development and consequences of the pandemic remains great, the 2021 business plan predicts further business growth and improvement of operational efficiency.

The substantial number of contracts concluded, ensured liquidity and a stable balance sheet enable further growth and development of the Group in the next business year.