Končar concludes first half of 2024 with new record-high revenues and net profit

Končar continues its growth trend in the second quarter of 2024 – in the first six months, consolidated revenues from the sale of products and services amounted to €478.7 million, which is an increase of €95.8 million or 25 percent compared to the same period in 2023. Successes were also achieved in exports, which increased by €94.7 million or 37 percent compared to the first half of 2023, with an amount of €351.3 million accounting for 73.4 percent of total revenues from the sale of products and services.

One of the key confirmations of the strong upward trajectory and also the fundamental basis for further advancements are newly contracted jobs, which in the observed period amount to €866.2 million, while the backlog has reached a new record level of €1.8 billion.

Compared to the same period last year, the most significant increase in revenues from the sale of products and services in exports was achieved in the European Union market, where the export amount increased by €82.4 million compared to the first half of 2023. Exports to EU countries amounted to €274.9 million, accounting for 78.2 percent of the total export achieved.

Looking at the business segments of the Končar Group, the largest growth in the first six months of 2024 was achieved by the business area of transmission and distribution of electricity, where the company Končar – Distribution and Special Transformers stands out. The green energy transition has resulted in exceptionally high demand for transformers, which represent one of the strongest levers of Končar’s business portfolio and a segment in which the Croatian company has established itself among the globally most relevant high-tech manufacturers.

Good sales results have also secured Končar a new record net profit, EBITDA, and consequently achieved margins. The reported net profit for the first half of 2024 amounts to €73.8 million, which is an increase of €48.0 million compared to the same period in 2023. EBITDA amounts to €90.5 million, which is an increase of €53.8 million compared to the EBITDA achieved for the first half of 2023, while the EBITDA margin stands at 18.9 percent, which is even 9.3 percentage points higher than last year.

– Strategic and operational changes in recent years and timely adaptation to the new era of electricity have ensured results that are multiple times higher than those achieved four years ago. We are extremely pleased with the fact that the amount of newly contracted jobs and backlog continues to grow, which ensures further growth and gives us a realistic basis for high optimism in the upcoming period. In addition to opportunities for business and development advancements, the green and digital transformation has also presented us with the need for additional investments in the development of solutions, products, and services. The high level of orders requires us to expand and modernize production capacities, so we have continued a significant investment cycle this year, with CAPEX in the first half being double that of the same period last year, amounting to €18.4 million – emphasizes Gordan Kolak, CEO of Končar.

Končar’s financial advancements in the second quarter of 2024 were further complemented by significant contracts that are of exceptional strategic importance, not only for the Končar Group but also for the entire domestic economy and national industry. Among the more important new contracts, the contract for the revitalization of the Vidraru hydroelectric power plant in Romania worth nearly €80 million stands out, as well as the contract with the Croatian Transmission System Operator (HOPS) for the supply of equipment and works on the reconstruction of the Velebit reversible hydroelectric power plant worth €14.2 million, and the selection of Dalekovod as the most competitive bidder for the contract for the construction of a new 420 kV power line on the Vik – Sogndal section in Norway, worth over €14 million.