In 2022, Kraš recorded a sales revenue growth of 8.7% YoY, an EBITDA growth of 22.4%, and a net income to majority of HRK 44.9m, an increase of 49% YoY.
Starting off with the revenue, sales revenue amounted to HRK 1.2bn, an increase of 8.7% YoY. Of this, sales on the domestic market amounted to HRK 630.3m, an increase of 9.9% YoY, while sale revenue abroad amounted to HRK 498.3m, an increase of 6.7% YoY. The revenue growth was recorded across all product categories, while the volume of products sold is slightly lower on a YoY basis. In fact, the total sales volume amounted to 36.4k tonnes, which is 1.4% or 505 tonnes less YoY. Of this, the domestic market recorded a decrease in volume of 1.9%, while the volume on the international market recorded a 4% decrease.
This would imply that the growth in sales revenue came as a result of higher prices of products, and given that the revenue increased by 8.7% while the volume decreased by 1.4%, proves that Kraš is on average able to charge higher prices for their products with negligible reduction in volume. Furthermore, this can also show us that Kraš has solid market shares across its product segments, which combined with its effort of inventory optimization led to the aforementioned increase in sales.
Moving on, the EBITDA amounted to HRK 116.2m, an increase of 22.4% YoY, implying an EBITDA margin of 10.20%, an increase of 1.15 p.p. YoY. This growth was primarily driven by several things. Firstly, higher material expenses, which increased by 16.3% YoY and amounted to HRK 744.5m. Secondly, higher reservations (in this case, for retirement, severance packages, and other similar liabilities to employees), which increased by over 3x, to HRK 23.5m. Lastly, the changes in the value of the inventory of products in production but also finished products amounted to HRK -36.5m in 2022 (2021: HRK 919k).
Finally, the net profit amounted to HRK 44.9m, an increase of 49% YoY, implying a net profit margin of 3.94%, an increase of 1.07 p.p. YoY. In fact, this growth was really supported in the last quarter, as the Company recorded a net profit of HRK 8.7m in Q4 2022, while in the same period last year, they recorded a net loss of HRK 4.07m.
Kraš key financials (2022 vs. 2021, HRKm)
Source: Kraš, InterCapital Research