In the first nine months of 2022, the Croatian IT company Ericsson Nikola Tesla posted a consolidated net profit of 79.3 million kuna (€10.5 million), down 30.9 percent year-on-year, the company reported on Thursday.

Consolidated net income totaled 1.58 billion (€210 million) or 1.8 percent up, while expenses totaled 1.47 billion kuna (€195 million) or 3.9 percent up.

Sales revenues were 1.55 billion (€205 million) or 0.8 percent, with domestic sales accounting for 41.4 percent, services for 47.9 percent and “other export markets” for 10.7 percent of all revenue. Exports accounted for 58.6 percent of the company’s total income.

Domestic sales totaled 640.3 million kuna (€85 million), down 12.3 percent from the first nine months of 2021. Foreign sales, without services for parent company Ericsson, totaled 164.7 million kuna (€22 million) or 4.9 percent, while services for Ericsson generated 740.8 million kuna (€98 million) or 14.6 percent up.

Gross margin dropped to 9 percent, “primarily due to sanctions in Belarus,” the company said, and higher costs of energy and raw materials, while operating profit dropped by 22.4 percent to 102.6 million kuna (€13.6 million).

(€1 = 7.53 kuna)