In Q1, Kraš recorded a 3.4% decrease in sales, an increase in EBITDA of 31.3% and a increase in net profit to majority of 46.7%.

In Q1 of 2020, Kraš’ operating revenues amounted to HRK 215.1m, representing a decrease of 4% YoY. Such a decrease could be attributed to lower sales on the foreign market, which account for 46.2% of total sales. On the domestic market, sales amounted to HRK 113.4m, representing an increase of 4.6% YoY.

The company notes that since the outbreak of the Covid-19 pandemic they insured the continuity of supply of raw materials as well as delivery to customers on the both domestic and foreign market. Kraš also noted that they prepared a diverse program for the Easter season (April) which was not realized according to plan due to the pandemic.

Operating expenses recorded a 6% YoY decrease, amounting to HRK 203.98m, which mostly came on the back of lower employee expenses (by 21% or HRK 19.4m). As a result of the lower operating expenses, EBITDA recorded a solid increase of 31.3%, amounting to HRK 23.4m. Such a result puts the EBITDA margin at 10.9%, representing an improvement of 2.9 p.p. YoY.

Going further down the P&L, Kraš recorded a net financial result of HRK -1.5m compared to HRK 1m in Q1 2019. Such a result could mostly be attributed to a net FX loss.  In the first 3 months of 2020, the company recorded a net profit to majority of HRK 7.12m representing an increase of 46.7%.