Viadukt Increased Profit by More than 13 Percent

Viadukt Group achieved a pre-tax profit of 3.6 million kuna last year, representing a growth of 13.1 percent compared to the previous year, according to data from the consolidated preliminary unaudited financial report of the company published on the Zagreb Stock Exchange.

The Group generated total revenues of 898.1 million kuna in 2012, which represents a growth of six percent compared to the previous year. Sales revenues amount to 862.8 million kuna and are up seven percent. In these revenues, the share of the domestic market accounts for 81.5 percent, while the share of the foreign market is 18.5 percent (projects in Bosnia and Herzegovina). Financial revenues amount to 11.2 million kuna and are down seven percent.

The Group increased total expenses by six percent last year, to 894.5 million kuna. Material costs recorded a growth of seven percent, to 583.9 million kuna, accounting for 65.3 percent of total costs. Employee costs decreased by 2.4 percent, to 139.2 million kuna, while financial expenses increased by 42.7 percent, to 21.47 million kuna.

Regarding the expected development of the company in the upcoming periods, the report states that the core activity of Viadukt is the execution of works on infrastructure projects, and since these works are predominantly under the jurisdiction of the public sector, namely the state and regional and local government units, better times can only be expected with an increase in investment activities. The report notes that there are indications of a positive change, which provides some optimism.

They also note that several years ago they began implementing two strategic goals – entering foreign markets, which resulted in contracting projects in Libya, Bosnia and Herzegovina, and Algeria, and expanding activities, gaining references, and contracting works on maritime projects, wastewater treatment and disposal projects, as well as municipal waste management projects.

The project in Libya is stalled, while the project in Bosnia and Herzegovina is nearing completion, and in Algeria, they have begun the realization of the project. They are also actively engaging in activities related to Russia and Turkmenistan, where opportunities for expansion into those markets are opening up.

The second strategic goal, expanding activities on maritime projects, wastewater treatment and disposal projects, and municipal waste management is being successfully achieved, they emphasize in the company. They also note that alongside their core activity of building roads, highways, bridges, tunnels, and sustainably expanding into new markets and new activities, they expect stable operations in the upcoming period.

Viadukt Group consists of the parent company Viadukt d.d., and the subsidiaries Viadukt Banovina d.o.o., Viadukt Projekt d.o.o., and Viadukt Konstrukcije d.o.o.