ECONOMIC RESULTS OF THE ŠKODA TRANSPORTATION GROUP FOR 2020
Since it has been part of PPF Group, its backlog has increased to a record 68.7 billion CZK
The largest Central European manufacturer of rolling stock, the Škoda Transportation group, already knows its audited financial result for 2020. Thanks to new contracts for rail and wheeled vehicles, as well as electrical equipment and the modernization and repair of vehicles, Škoda's backlog increased to about 3 years, reaching a total value of 68.7 billion CZK. 2020 was also notable for the group in terms of new investments in research and development, which reached a total of almost two billion korunas, and in production, where investments reached 0.85 billion CZK. This led to the creation more than 600 new jobs. The group's operating result before depreciation and one-off non-cash expenses (Adjusted EBITDA) reached 0.38 billion CZK, which is a year-on-year increase of 18.6 %. Sales increased year-on-year by 11.3 % to 11.03 billion CZK. In 2020 the group also repaid bonds in the amount of 2.3 billion CZK.
"I want to thank every single Škoda employee for the past year, which was extremely challenging. Unfortunately, the current covid-19 pandemic and related measures have had a negative impact on the implementation of our contracts and investments. The technical and material preparation of projects and some deliveries from subcontractors were affected, and the usable capacity in production, testing and homologation was reduced due to illness. Restrictions on travel and restrictions in other countries played a significant role in foreign contracts. All the restrictions have also affected our recruitment plans. However, we have tried to minimize these impacts. Our ambitions for 2020 were higher with regard to the capacity plan and the concurrence of many projects, but I believe the result we achieved is very good in view of the circumstances," says Petr Brzezina, President and Chairman of the Board of Škoda Transportation.
In 2020, the group invested a total of 0.85 billion CZK to expand and streamline production companies in Plzeň, Ostrava, Šumperk and Otanmäki, Finland. This included a test room, a paint shop, a chassis fabrication shop, machining centers, assembly lines, etc. More large investments are being made in all companies this year again. More than 600 new jobs with high added value were created, from developers, programmers and designers to blue-collar professions. The group also invested 1.73 billion CZK in research and development of its products.
Adjusted EBITDA increased by 18.6% year-on-year to 0.38 billion CZK due to a greater order backlog. EBITDA in 2020 was significantly affected by one-off non-cash expenses in the amount of 1.17 billion CZK, which primarily consisted of provisions for long-term intangible assets, receivables and inventories of materials. The above-mentioned extraordinary provisions are related to historical development costs and contracts. With these one-off non-cash expenses, the operating profit before depreciation (EBITDA) is -0.79 billion CZK, and the financial result is -1.42 billion CZK.
The results of the first quarter of 2021 further confirm the positive trend, the group concluded new orders for CZK 6.8 billion, the operating result before depreciation (EBITDA) reached CZK 0.26 billion and the company reported a positive economic result.