KONČAR Group: Croatia’s most successful exporter of high-tech solutions

Following the record 2021, in which KONČAR Group celebrated a century of excellence and achieved the historically best operating revenue, 2022 started equally successfully.

KONČAR Group maintained a strong global presence, particularly in the largest global markets such as North America, where the company continues to deliver high – tech products to some of the leading energy utilities in the USA and Canada. A signal of further successful operations of KONČAR Group comes from the youngest subsidiary, KONČAR Digital, which signed a Cooperation Agreement with RITTAL Croatia at Hannover Messe 2022, the key international platform and hub of industrial transformation.

 A year to remember, and Q1 to build on

Excellent results achieved last year have enabled KONČAR Group to successfully defeat unpredictable and exceptional situations, such as the pandemic and the Russian invasion of Ukraine, and further financially strengthen the position of the Group. Along with a strong financial position, excellent order intake has created the basis for revenue growth realised from the sales of products and services across all key markets.

In Q1 2022, sales revenues amounted to 117.9 million euros, which represents a 27.9% increase year-on-year. Revenues generated from sales of products and services in international markets were 14.8% up year-on-year and amounted to 70.4 million euros. The share of exports in revenues from the sales of products and services amounted to 60%, two thirds of which had been realized in the EU market. Order intake matched good sales performance. The Book-to-bill ratio was 1.6. The excellent market performance is reflected in the financial results. The realized net profit for Q1 2022 amounts to 15 million euros, which is 9.5 million euros more than the realized profit in the same period in 2021. The realized EBITDA amounted to 18.6 million euros and the EBITDA margin is 15.8 percent (in Q1 2021 it amounted to 8.9 percent). Normalized EBITDA amounted to 10.7 million euros, which is 3.5 million euros more than in the comparable period of 2021. Normalized EBITDA margin amounts to 9.1 percent. The priorities of KONČAR Group in the upcoming period remain the same – strong revenue and profitability growth, orientation on export markets, and the continuation of the investment and development cycle with a focus on sustainable development.

Maintaining strong presence in North America

In 2020, KONČAR – Generators and Motors (GIM) delivered four synchronous generators with a contactless excitation system and the associated equipment to the small hydro power plant (SHPP) Madison Dam, Montana, USA. The delivery was completed in partnership with an Austrian turbine company and in addition to four 4100 kVA, 4000 V and 300 rpm generators, it also included excitation systems, automatic bearing lubrication systems and generator earthing systems. The project enabled GIM to establish good cooperation with colleagues in the USA, and it was compelling for GIM because of its technical specifications and requirements of the end customer. Supervision over the commissioning of the first generator was completed last December, while the last, fourth generator was successfully commissioned in March 2022.  GIM is exceptionally proud of its first delivery and commissioning of compact generators for the US market.

Besides that, last year GIM also completed a technically demanding prequalification process for the Canadian company Ontario Power Generation (OPG) – one of the largest clean power generators in the region, whose portfolio includes 66 hydro power plants in Canada and 87 across the USA.

Cooperation Agreement between KONČAR – Digital and RITTAL

KONČAR – Digital and RITTAL Croatia signed a cooperation agreement at Hannover Messe on May 31st, which creates new opportunities for the development of IT infrastructure and efficient management of data centers in Croatia and the region. KONČAR – Digital is a KONČAR Group member, focused on green energy transition and digital transformation projects. KONČAR experts have extensive experience in successfully developing digital solutions for energy management, critical and urban infrastructure, and smart cities. The company’s digital solutions are delivered to Europe, Asia, Africa, and South America. Furthermore, the company has launched new digital solutions for critical infrastructure management developed on the new software platform PROZA HAT, an innovative open-core software platform that supports complete SCADA functionality for monitoring and management of critical infrastructure, data centers, power generation, and transmission and distribution systems. On the other hand, RITTAL Croatia is a subsidiary of the German company Rittal GmbH & Co. KG, a member of the Friedhelm Loh Group, the world’s leading supplier of enclosures, power distribution systems, climate control and IT infrastructure.

Photo: Končar Group


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