KONČAR has maintained its robust growth trajectory into the second quarter of 2024, achieving new business milestones by the end of the first half of the year. The first six months saw consolidated revenues from the sale of goods and services amount to EUR 478.7 million, a year-on-year increase of EUR 95.8 million or 25% compared to H1 2023. Export performance showed remarkable strength, with a year-on-year increase of EUR 94.7 million or 37%, bringing total exports to EUR 351.3 million and accounting for 73.4% of overall sales revenues. New contracts signed during this period brought in an order intake of EUR 866.2 million, further cementing KONČAR’s growth path and laying a strong groundwork for future expansion. Backlog has achieved a record EUR 1.8 billion, reinforcing the company's steady success and forward-looking potential.
Compared to the corresponding period last year, the most significant increase in export sales revenues was in the European Union market, where export revenues grew by EUR 82.4 million year-over-year. Export to the European Union countries reached EUR 274,9 million or 78,2% of the total export. The power transmission and distribution segment saw the most notable growth, particularly driven by the outstanding performance of our flagship company, KONČAR – Distribution and Special Transformers. The green energy transition has led to a surge in demand for transformers, a cornerstone of KONČAR's business portfolio. This sector has elevated the Croatian company to the ranks of the most globally significant high-tech manufacturers.
Strong sales results have secured KONČAR a new record net profit, EBITDA, and corresponding margins. In the first half of 2024, the net profit surged to EUR 73.8 million, a striking yer-on-year increase of EUR 48.0 million. EBITDA reached an impressive EUR 90.5 million, marking a growth of EUR 53.8 million from H1 2023. The EBITDA margin also saw a significant rise, hitting 18.9%, up by 9.3 percentage points from the previous year.
„The strategic and operational transformations over recent years, along with rapid response to the changing dynamics of the energy sector, have propelled KONČAR to achieve results far surpassing those of four years ago. We are very pleased with the sustained growth in order intake and backlog, which ensures our ongoing development and underpins our positive expectations for the future. Beyond the prospects for business and development, the green and digital transformation has compelled us to invest more in the development of cutting-edge solutions, products, and services.
The substantial volume of order intake mandates the expansion and modernization of our manufacturing capacities, prompting us to continue a significant investment cycle this year. As a result, CAPEX has doubled year-on-year in the first half reaching EUR 18.4 million, emphasized Gordan Kolak, KONČAR CEO.
KONČAR's financial achievements in the second quarter of 2024 have been further bolstered by significant contracts of immense strategic importance, not only for KONČAR Group but also for the entire domestic economy and national industry. Among the notable new contracts, the most prominent include the EUR 80 million contract for the revitalization of the Vidraru hydropower plant in Romania, an EUR 14.2 million contract with the Croatian Transmission System Operator (HOPS d.d.) for the supply of equipment and reconstruction works on the Velebit pumped-storage hydropower plant, and the selection of Dalekovod as the most favourable bidder for the construction of a new 420 kV transmission line on the Vik-Sogndal section in Norway, worth over EUR 14 million.
Driven by favourable market trends, recognized and leveraged potential, and the unwavering commitment of our employees, KONČAR has significantly surpassed its ambitious targets in several segments during the first half of the year. The surge in order intake and a reinforced emphasis on exports underscore KONČAR's crucial role in the global green transition and its growing prominence in the international marketplace.
