During 2023, Kraš recorded revenue growth of 13% YoY, an EBITDA increase of 27%, and a net income of EUR 6.7m, an increase of 39% YoY.
Last week, Kraš published its FY 2023 results, and in this overview, we’re bringing you the highlights. Starting off, revenue amounted to EUR 171.6m, representing an increase of 13% YoY. Of this, revenue from the domestic market amounted to EUR 94.3m, an increase of 12.8% YoY, while revenue from the international markets amounted to EUR 75m, growing by 13.4% YoY. On the domestic market, a 3.9% increase in sales volume was recorded, while in the international markets, an increase of 5.8% was recorded.
This would mean that on the domestic market, only 30% of the sales revenue growth came from higher volumes sold, while 70% came from higher prices. The situation is a little bit better in the international markets, with 44% of the sales revenue growth coming from higher volumes, while 66% came from higher prices. As such, the majority of the revenue growth during the year came from higher prices.
In terms of operating expenses, they amounted to EUR 170.8m, a 15% increase YoY. Kraš noted that through a strong focus on optimizing internal resources and rationalization of all expense segments, they were able to keep cost growth under control. Inside the OPEX, material expenses increased the most, growing by 18% YoY to EUR 116m, due to the higher costs of commodities and materials used for production, while staff costs remained roughly the same, at EUR 33.2m (-0.2% YoY). While no breakdown of this is available, the no. employees was reduced by 5.4% YoY to 2,071 at the end of 2023. As such, staff expenses remaining unchanged would be under the influence of higher wages offered, and lower no. employees employed.
Moving on, EBITDA amounted to EUR 17.9m, an increase of 27% YoY, implying an EBITDA margin of 10.5%, an improvement of 1.13 p.p. YoY. In terms of the financial income, it declined by 35% YoY to EUR 833.4k, under the influence of lower FX gains. A similar situation is presented for the financial expenses, which declined by 48% YoY to EUR 626.5k, also under the influence of lower FX losses. As a result, the net financial result amounted to EUR 206.9k, an improvement of 169% YoY.
As a result of all of the above-described developments, Kraš’s net income amounted to EUR 6.7m, an increase of 39% YoY. This would also mean that the net income margin amounted to 3.9%, an increase of 0.72 p.p. YoY.
Kraš key financials (2023 vs. 2022, EURm)
Source: Kraš, InterCapital Research
