The sales revenue of the general contracting and construction company Conres rose by 19.5% last year and reached a record sum of EUR 100 million. Although issues prevailing in the sector hindered the growth of profits, the company predicts that this year will be better: it intends to increase both revenues and profits.
‘Although the market was volatile and unstable last year, we managed to secure a portfolio of works and income. However, the projects that continued from 2021 had a negative impact on the profit results of 2022, which ended with significant price increases,’ says Lukas Laukaitis, the CEO of Conres.
Despite this, L. Laukaitis is happy that the company’s activities remained profitable, even though this year was not an easy one. He singled out the main difficulties: inefficient price indexation on the market, broken supply chains, growing prices on construction materials and a lack of a skilled labour force.
‘When implementing projects signed before the war, the energy crisis and record inflation, the customers agreed to compensate part of the increased costs, but in relation to the most financially difficult projects, we ourselves covered the substantial increases in costs of materials, at the expense of our own profit,’ says the company’s CEO.
In 2022, Conres earned EUR 762,238 in net profit – 55% less than in 2021 when its net profit was EUR 1.69 million.
The war in Ukraine, economic slowdown and high inflation dictated another difficult year, but the company has shown resilience and plans stable revenue and profit growth this year. ‘The situation is more predictable this year, as there is no significant increase in prices and material supply chains have been restored. Though it is still not ideal, it is significantly more stable. More predictable costs, decreasing inflation and our ongoing projects allow us to believe that the financial results will be better than last year. We see that the situation will be better both in terms of income and profit, and we plan to return to the average profitability of the company,’ says L. Laukaitis. In total, Conres has currently secured works worth over EUR 110 million. The company does not wish to stop there; it continues to receive projects, participate in tenders, continues its work and this year still hopes to sign new cooperation agreements.
The CEO of the company notes that the team is already working on compiling a portfolio of next year’s projects: ‘Project numbers are decreasing and the market itself is slowing down – an early form of stagnation can be felt – so right now our priority is to receive new orders for the coming year as well.’
About the company
The general contracting and construction company Conres (formerly Conresta) has been operating since 2009. Conres is successful in the construction of industrial, residential, public and administrative buildings as well as cultural heritage and special purpose buildings. The general contracting company is currently working on the construction of the Vilnius Combined Heat and Power Plant (Vilnius CHP), the Lidl logistics centre, the K22 Business Centre, the modernisation of the Medininkai Border Crossing Point and it is implementing the Design-Build project of the Omniva logistics centre.