Končar Group Plans a 14 Percent Increase in Export Sales Revenue in 2016

The management of Končar – Electrical Industry presented the company’s business outlook for this year and the business plan for 2016 at today’s press conference.

– We announced 2015 as a good year because we had a very high level of contracts. We finished with a growth of 15 compared to the previous year, of which 43 percent was from exports. Our exports have slightly decreased due to increased activities in the domestic market. It is very important that we have contracted 2.9 billion kuna in new jobs on 3 billion kuna in revenue, which is very good. We have been quite engaged in exports, having participated in 21 fairs and events around the world, and we achieved all this with the same number of employees, so our revenue per employee is around 830 thousand kuna – said CEO Darinko Bago.

He emphasized that they invested over 120 million kuna, of which 40 percent was invested in development. He presented the most important projects from this and last year, including the delivery of 16 low-floor trains for HŽ, announcing that next year they plan revenue growth of between two and three percent, depending on the success of contracting. The consolidated gross profit for 2015 amounts to around 150 million kuna, which is in line with the plan, while for the next year they plan a growth of 19 percent, or a consolidated gross profit of 178 million kuna.

According to the adopted plan for 2016, the companies of the Končar Group plan to achieve sales revenue of products and services amounting to 3.12 billion kuna, which is 73.8 million kuna or 2.4 percent more than the estimated realization for 2015. At the same time, sales revenue in the domestic market is estimated at 1.63 billion kuna, which is 6.2 percent less than the estimated realization this year, while an increase in export sales revenue of 13.9 percent is planned, to 1.49 billion kuna. The share of exports in total revenue would thus increase by five percentage points compared to the estimate for this year, with Germany (166.5 million kuna), Sweden (154.7 million kuna), Slovenia (105.3 million kuna), and Bosnia and Herzegovina (98.7 million kuna) being cited as the countries to which the largest portion of products and services is planned to be exported.