Following a stellar 2022, solidified by the company’s Audited Financial Statements, KONČAR Group started the new business year on an impressive growth trajectory across all key performance indicators. Order intake in Q1 2023 amounts to EUR 404.7 million, which is a double-digit growth year-on-year. The record backlog reaches EUR 1.2 billion, an upsurge of EUR 233.1 million compared to the balance at 2022 year-end. Such meaningful order intake upturn is an excellent foundation for further growth in the upcoming quarters.

The positive upward trajectory is supported by order intake expansion and strong growth across all key performance indicators. Consolidated income generated from the sales of products and services amounts to EUR 171.5 million, representing a year-on-year increase of EUR 54.2 million or 46.2%. In Q1 2023, the share of exports rose to account for 64% of the total sales income. Year-over-year, income from the sales of products and services in foreign markets expanded across all markets, with significant growth of income recorded in the EU market, where exports rose by EUR 30.8 million. Exports to the European Union countries amount to EUR 79.9 million or 73.2% of the total exports. Exceptionally strong performance was realized in the power transmission and distribution segment. We have recognized and leveraged growth opportunities stemming from rising demand for transformers, driven by the accelerating green transition. New order intake in the EU market is up by EUR 159.9 million year-on-year, which is accompanied by increasing order intake across all markets served.

KONČAR's results for Q1 2023


Customers, primarily in the demanding EU market, have recognized the quality and reliability of KONČAR solutions, and the reputation we have been consistently building over the years has resulted in record-high order intake. Although the prices of energy and raw materials have been stabilizing recently, and inflationary pressures have been easing, uncertainty continues, largely propelled by the on-going war in Ukraine. At KONČAR, financial stability and excellent order intake drive the further growth of operations, foster the continuing investment cycle, and make possible the implementation of the Group Integral Strategy. This year will see the planned continuation of the 60 million euro worth investment cycle”, says Gordan Kolak, KONČAR CEO.

Despite strong expansion of sales income across all segments and all markets, pressures on profitability continued throughout Q1 2023. Surging prices of commodities, services and energy reflect on profit margins. Additionally, Q1 2022 was marked by significant one-off items and profitability therefore must be observed on a normalized basis. Year-over-year, normalized EBITDA is EUR 2.8 million higher and amounts to EUR 13.5 million (Q1 2022: EUR 10.6 million). Normalized EBITDA margin is down by 1.2 percentage points and amounts to 7.9% (Q1 2022: 9.1%). The declining margins have, to some extent, been offset by efforts invested in negotiations with customers and suppliers, and by improved work efficiency and savings realized on other costs. Finally, earnings before interest, taxes, depreciation and amortization (EBITDA) reduced by 15.2% compared to the corresponding period last year. The reporting operating profit of EUR 10.7 million was achieved, down by EUR 4.3 million.