The Group generated consolidated operating income in the amount of HRK 1,626.0 million, representing a year-on-year surge by 18.3%. Export sales continued to grow and amounted to HRK 983.6 million, representing an increase of HRK 86.2 million (9.6%) compared to the first half of 2020. The share of export in total revenue from the sale of products and services was 62%. Newly contracted business amounted to HRK 2,178.1 million, which was HRK 691.8 million (46.5%) rise compared to 2020. Book-to-bill ratio for the period January-June 2021 is 1.37.

In addition to these sales results, the Group has also achieved excellent financial results. EBITDA amounted to HRK 129.7 million, representing a growth of HRK 46 million compared to the period January-June 2020. EBITDA margin was 8.1% (6.2% in the same period of 2020).  Operating profit stood at HRK 81.3 million and the consolidated net result of the Group amounted to HRK 74.3 million, which is HRK 41.2 million more compared to the same period of the previous year.

Backlog at the end of June was HRK 4.8 billion, representing a 13.8% increase compared to the beginning of the year. Sales revenue plan is fully met by the existing contracts and the Group also expects new contracts to be concluded before the end of the year and performed in 2022 and onwards. At the end of the half-year period, the backlog of contracts to be performed in the upcoming years amounts to HRK 3 billion.

In addition to great financial results, the Group signed several important contracts in Q2, including a contract worth HRK 330 million for the revitalisation of HPP Senj and a significant contract which represents a step forward in the Asian market. After two years of continued tendering and negotiation, for the first time in our history, we won a contract in the complex Japanese market. In the context of that project, KONČAR will provide services to a Japanese client which include design, manufacture and supervision of assembly of three generators for two different small hydropower plants. Deliveries of low-floor trams to Latvia launched in the first half of this year.

Our companies in the transformer segment realised twenty-fold year-on-year growth in sales, maintaining their good financial results despite a significant disruption in the prices of raw materials and supplies, primarily copper, aluminium, steel and transformer sheet metal.

End-of-year business forecasts have been made at the Group level. We expect income to reach the planned volumes and to further expand newly contracted business. Low levels of indebtedness, alignment in the sources of finance and investments, combined with overall financial stability, enable us to realise our objectives. We are confident that the Group will continue to grow and develop in the upcoming period.