In 2019 Končar recorded an increase in sales of 12.8% YoY, a decrease in EBITDA of 27% and a decrease in net profit of 55.8%.

In 2019, Končar recorded an increase in sales of 12.8%, amounting to HRK 2.81bn. Of that, revenues on the domestic market account for HRK 1.16bn, which is an increase of 10.2% YoY. There, sales of goods and services to HEP account for the majority of sales.  

On the foreign market, Končar recorded sales of HRK 1.65bn, representing an increase of 14.7% YoY. Of that, most exports were realized in EU countries (65.2%), followed by Asian & African countries (6.5%).

Compared to 2018, a significant increase in sales was witnessed in Bulgaria (by HRK 56.9m), Guinea (by HRK 55.6m), Austria (by HRK 38.9m).

It is worth noting that in 2019, concluded deals increased by 16.8% or HRK 450m, while the backlog on 31 December 2019 amounted to HRK 3.34bn (+9% YoY).

When observing operating expenses, they amounted to HRK 2.9bn, which is an increase of 12.9% YoY. Of that material costs went up by 16.3% or HRK 274m. Higher operating expenses ended up being the driver of the results being lower throughout the P&L compared to 2018.

In 2019, EBITDA amounted to HRK 130.88m, representing a decrease of 27% YoY. This puts the EBITDA margin at 4.65% (-2.59 p.p. YoY). The company attributes such a decrease mostly to one-off value adjustment, mostly in fixed assets.  Operating profit amounted to 39.42m, showing a decrease of 57% YoY.

Net financial result of the Končar Group stood at HRK 14.5m compared to HRK -5.3m in 2018, which could be attributed to lower FX loss in 2019.

It is also worth noting that share of profit from undertakings with participating interest decreased by HRK 34.34m to HRK 13.71m. Končar notes that restructuring of the non-core part of the Group was continued in 2019. As a result, the shares of Končar – Kučanski aparati have been sold and are no longer the part of the Group.

In 2019, Končar recorded a net profit of HRK 52.7m, representing a decrease of 55.8%. Such a result puts the net profit margin at 1.8% (-2.7 p.p. YoY).