ENGCON increased profit margin by over 3.5% in 2020 despite the pandemic-related challenges.
The tiltrotator manufacturer reported a ‘marginal’ reduction in net sales (from approximately SEK 1.35 billion to SEK 1.23 billion. However, operating profit was SEK 218 million (2019: SEK 194.6).
Krister Blomgren, CEO of Engcon Group, said, “Before the pandemic hit, we estimated that 2020 had the potential to be another record year in turnover and potential profit, but in connection with the economic downturn, we had to re-adjust and deal with the pandemic and its effects. Just as for 2019, we made sure that our offensive establishment strategy in the non-Nordic markets addressed any potential decrease in turnover, but above all our overall result means that during the pandemic we improved our profitability.
“At the same time, we are entering a new phase, where we need to be prepared to manage an increase in demand and higher costs to meet this demand.
“Another reason why Engcon came through the pandemic year 2020 in such good shape was because of our employees. Despite a tough year that placed high demands on all of us, our employees have stepped forward and shown proof of their loyalty and drive. I am extremely proud to see how hard everyone has worked for us to remain number one and continue to improve everyday life for all excavator operators out there in the world. It is thanks to this work that we are now strong enough to meet a regrowth and increased demand in the global market.”