Končar Group Achieves Historically Best Results in 2021

Končar Group achieved a net profit of 211.2 million kuna, which is 65.6 percent higher than the previous year, according to data from the company’s consolidated financial report published on Thursday.

– The year in which we celebrated our centenary ended with double-digit growth in all key business indicators. With record revenue growth and significantly higher profit compared to 2020, the set plans were fulfilled and exceeded – emphasized CEO Gordan Kolak while commenting on the business results.

Končar Group’s operations in 2021 demonstrated great resilience and stability, as confirmed by historically best results.

The continuously complex macroeconomic environment continues to be influenced by the COVID-19 pandemic, which primarily reflected in disruptions in supply chains and the rising prices of key raw materials and materials, Kolak noted, emphasizing that timely measures and activities significantly mitigated the negative impact on business.

– A strong financial position, good contract coverage, adaptability to customers and suppliers, adherence to delivery deadlines and payment obligations allowed us to end the year with growth in new orders and in 2022, continuing the positive business trend – he said.

According to the report, the total consolidated revenues of the Group amount to 3.6 billion kuna, which is an increase of 540.7 million kuna or 17.5 percent compared to 2020.

Revenue from the sale of products and services also recorded growth, by 17 percent, to 3.5 billion kuna. In the domestic market, revenues amounted to 1.4 billion kuna, which is a growth of 26 percent. The share of the domestic market in total revenues from the sale of products and services is 40.7 percent.

Revenue from sales in the foreign market amounted to 2.06 billion kuna, an increase of 11.5 percent. The share of exports in total revenues from the sale of products and services is 59.3 percent.

The most significant export was achieved in the German market, amounting to 410.9 million kuna or 19.9 percent of total exports. Goods and services worth 273.5 million kuna or 13.3 percent of total exports were exported to Sweden, and 148.2 million kuna or 7.2 percent of total exports were exported to Austria.

The total expenses of the Group last year amounted to 3.4 billion kuna, which is 14.2 percent higher than the previous year.

Končar Group companies contracted new jobs worth 4.2 billion kuna in 2021, which is an increase of 13.5 percent compared to the previous year. Of the total contracted amount, 1.66 billion kuna (39.2 percent of total contracted jobs) was contracted for the domestic market, while 2.57 billion kuna (60.8 percent of total contracted jobs) relates to export contracts.

– The excellent results achieved in 2021 are proof that even in challenging and unforeseen circumstances, Končar, which primarily means that its employees possess the necessary knowledge, competencies, expertise, and quality. By investing in new technologies, new production processes, and employees, we continue to build our business and develop to the satisfaction of all our stakeholders – emphasized Kolak.