In Q1 the company recorded increase in sales of 13.2% YoY, decrease in EBITDA of 30% and a decrease in net income of 63.4%.
In Q1 2019, Končar reported sales of HRK 606.6m, which represents an increase of 13.2% YoY. Meanwhile operating revenues increased by 8.2%, amounting to HRK 623.7m. When observing the revenues by segment, exports made for 65% of the operating revenues. Looking at individual markets, exports to Sweden recorded HRK 49.5m, to Germany recorded HRK 46.8m, to U.A.E recorded HRK 42.2m, to Austria recorded HRK 33.2m and to the Netherlands recorded HRK 26.3m.
The whole foreign market observed an increase of 27% YoY, amounting to HRK 394.7m. On the domestic market, the company observed a decrease of 5.9%, amounting to 211.9m. Of that, HRK 65.8m represents sales of goods and services to members of HEP.
In Q1, Končar contacted new deals worth HRK 759.4m, which represents an increase of 16.6%. Of that, 30% was contracted on the domestic market, while 70% on the foreign market. In 2019, HRK 698.3m of the mentioned deals will be realized, while the rest will be realized in the following years.
Operating Revenues (Q1 2019 vs Q1 2018) (HRK m)
Going Further down the P&L, the company observed an increase in operating expenses of 11%, amounting to HRK 617.8m. The increase could be mostly attributed to the rise in material costs of HRK 30.4m and changes in inventories of work in progress and finished goods which went from HRK -70m in Q1 2018 to HRK -37.5m.
Consequently, EBITDA observed a decrease of 30%, amounting to HRK 29.3m.
In Q1 the company realized a net financial gain of HRK 2.5m, compared to Q1 2018 when they recorded a loss of HRK 7m.
Net income amounted to HRK 5m, which represents a decrease of 63.4% YoY.