KONČAR Group’s business operations in Q3 2021 were marked by double-digit growth rates in all key performance indicators. Total income increased by 18.3%, net profit tripled compared to the same period in the previous year, and the backlog reached record-breaking HRK 5.2 billion.

Exceptional key performance indicators

The Group generated consolidated operating income in the amount of HRK 2,484.7 million, representing a year-on-year increase by HRK 387.2 million or 18.5%. Export sales continued to grow and amounted to HRK 1,494.5 million, representing an increase of HRK 149 million (11.1%) compared to Q1-Q3 2020. The share of export in total revenue from sale of products and services was 62%. Newly-contracted transactions amounted to HRK 3,362.5 million, which was HRK 1,137.4 million (51.1%) more compared to the same period last year.

Apart from these sales-related results, the Group also achieved excellent financial results. EBITDA amounted to HRK 230 million, representing an increase by HRK 110 million compared to Jan-Sep 2020. Operating profit amounted to HRK 157.2 million and the consolidated net result of the Group amounted to HRK 154.5 million, having more than tripled compared to the same period of the previous year (in 2020 it amounted to HRK 49.2 million).

Backlog at the end of September reached record-breaking HRK 5,197.2 million, representing a 22.4% increase compared to the value at the beginning of the year. The backlog of contracts to be performed in 2022 and in subsequent years amounted to HRK 3,918.8 million.

KONČAR Group 2020+ Integral Strategy

KONČAR Group 2020+ Integral Strategy sets the development direction and the strategic objectives intended to contribute to KONČAR Group utilising all its potentials and defining its strategic priorities for the upcoming period. The strategy includes a compelling new four-year development and investment cycle, improvement of employee qualifications and competencies structure by bringing in significant number of new engineers over the next four years, and a further increase in exports with the opening of new capital markets. By 2024, through expanding the services portfolio and offering integrated solutions that have greater added value, the Group plans to generate consolidated revenue around HRK 4 billion, in terms of organic growth.

Simultaneously with the process of developing the Integral Strategy, the Company’s Management Board continued with implementing changes in the Group’s structure. Companies with similar product ranges were merged, joint venture with the Chinese partner (KONČAR – XD) was wound up in mutual consent of both partners and a new company was established (KONČAR – Digital). The establishment of the new company represented a continuation of developing new solutions that will be in our focus for the next 10+ years. This pertains primarily to digitisation of products, services and business processes.