In Q1, Končar recorded an increase in sales of 7%, increase in EBITDA of 23.5% and a net loss to majority of HRK -7m.

In Q1 Končar recorded an increase in sales of 7% YoY, amounting to 604.2m. Of that, the domestic market generated HRK 222.7m, representing an increase of 23%. In Q1 sales of products and services to companies within HEP ​​amounted to HRK 82.3m, which is an increase by HRK 16.5m.

On the foreign market, the company generated HRK 381.8m in sales, remaining relatively flat.

When observing exports by individual market, the most significant export was realized on the German market, amounting to HRK 41.8m or 11% of total exports. Next come Sweden amounting to HRK 38m or 10%, Guinea HRK 32m or 8.4%, Austria HRK 30.3m or 7.9%. Compared to the same period of the previous year, a significant increase in sales in export occurred is in the following markets: Guinea (HRK +31.5m), USA (HRK +18.4m), Iraq (HRK +14.2m) and Slovenia (HRK +10.9m).

In Q1, the Končar Group companies contracted new business in the amount of HRK 676.1m. Of the total contracted amount, 29.2% was contracted for domestic market and 70.8% relates to export contracts. Backlog on 31 March 2020 amounted to HRK 3.4bn, which is an increase of 2.2% YoY.

Operating expenses amounted to HRK 614m, representing a slight decrease of 1% YoY. As a result of the above mentioned, EBITDA observed an increase of 23.5% YoY, amounting to HRK 34.7. Such a result puts the EBITDA margin at 5.6%.

Going further down the P&L,  Končar recorded a net financial result of HRK 9.48m (HRK +7m), which mostly came on the back of FX gains.

In Q1, the company’s bottom line was affected by the realized loss in the associate of HRK 13.6m According to Končar’s estimates by the end of the year, the associate should end the year with a positive result as planned. Therefore, in Q1, Končar recorded a net profit of HRK 0.54m (-89%). When looking at the net profit to majority, the company recorded a loss of HRK -7m.

Regarding the current Covid-19 sitaution the company adds that the possible negative impact on the Group’s operations depends primarily on the length of the extraordinary measures in Croatia as well as in the world, since the Group’s market activity is exposed to worldwide disruptions in the supply chain and the delivery of products.