Despite numerous global economic challenges and in the face of the war in Ukraine, the energy crisis and the on-going fallout of the pandemic, KONČAR Group has achieved another record business year. The 2022 business year is the second consecutive year of significant growth across all segments for KONČAR Group, with a spotlight on the order intake reaching nearly one billion euro, as well as EUR 152 million expansion of export sales year-on-year. Consolidated income generated from the sales of products and services amounts to HRK 5,272.1 million (EUR 699.7 million), the majority of which, 61% is generated in foreign markets.

The war in Ukraine has been impacting overall business conditions since the outbreak in Q1 2022. The prices of commodities, raw materials and energy which had not yet returned to their pre-pandemic levels, have been soaring in the aftermath of the Russian aggression against Ukraine and subsequent sanctions. In spite of all measures, earlier profitability levels have become unattainable, and profitability has gone down by 0.7 percentage points year-over-year (normalized net margin). However, good order intake at the start of 2022 resulted in an expansion of income generated from the sales of products and services across all markets. Consolidated income generated from the sales of products and services amounts to HRK 4,426.0 million (EUR 587.4 million), representing a year-on-year increase of HRK 948.5 million (EUR 125.9 million) or 27.3%.

The integration of Dalekovod resulted in an EBITDA upturn in the amount of HRK 861.7 million (EUR 114.4 million) and it now reaches HRK 5,272.1 million (EUR 699.7 million). A considerable growth of income was matched with rising volumes and rising share of income generated foreign markets, increased profit, order intake reaching HRK 5.9 billion (EUR 787.7 million), and record backlog of HRK 7.3 billion (EUR 976.1 million) at the end of 2022. The company has leveraged growth opportunities stemming from rising demand for power engineering products and equipment, primarily transformers, which has driven significant growth across all markets.

“KONČAR Group started 2022 with ambitious targets which were exceeded across nearly all segments. The 2020+ Integral Strategy set the goal of HRK 4 billion Group sales income by the end of 2024, excluding acquisitions. That goal was reached in 2022 with HRK 4.4 billion of realised sales income, which is the result of the contribution and efforts made by our employees. KONČAR embarks on the new year compelled with optimism and with expectations of good performance. Our goals remain the same – growing the income side and expanding exports, further investments in equipment and new product development, and crucially – investment in people, lifelong learning and professional development as the imperative for the realisation of strategic goals. With the global economy that has been increasingly pivoting towards sustainability, a trend that will accelerate, KONČAR has recognized the green transition as an opportunity for further growth and development of new technologies that will drive the business forward”, said Gordan Kolak, CEO of KONČAR.

Excellent sales results are matched with good financial performance. EBITDA amounts to HRK 396.4 million (EUR 52.6 million), representing an increase of HRK 105.2 million (EUR 13.9 million) year-on-year. The 2022 EBITDA margin stands at 9% and is 0.6 percentage points above the 2021 margin. Compared to 2019, this represents a three-fold rise in EBITDA. With integrated Dalekovod results, EBITDA amounts to HRK 495.5 million (EUR 65.8 million), and EBITDA margin is 9.4%. The investment cycles continued in 2022, directed at investments in new equipment and machinery with a focus on the energy transition and green CAPEX, specifically in further investment in improving energy efficiency and working conditions, primarily investments in photovoltaic power plants and the consumption of renewable energy sources.