Pardubice, East Bohemia, July 20 (CTK) – Explosia explosives producer upped after-tax profit by almost Kc36m (73 percent) to Kc83.9m last year and sales from own products and services rose by 16 percent to Kc1.05bn, a record in the company’s new-time history, CEO Josef Tichy told CTK.
The profit was significantly influenced by some accounting operations, however, he added.
Growth in production of ammunition casings which it supplies, for example, for Howitzer 155m for the Polish military, is important for the company.
“We have foreign clients which want there products. Unfortunately, the Czech Republic does not have these howitzers. We have developed the products, they are fully comparable with rivals, they are qualified for NATO,” Tichy said.
Export makes up some 60 percent of Explosia’s revenues. Explosives are sold mainly on the domestic market and to the neighbouring states. “As for ammunition, we operate practically in the whole world,” he added.
The size of the profit was favourably influenced by the fact that last year, the company included in revenues dissolution of a Kc13m reserve for future liquidation of IExplosives subsidiary in Slovakia.
Explosia also acquired again a contract for the supply of a plastic explosive for the Czech army. The company expects to raise turnover and make a profit also this year.
Explosia had 694 employees at the end of last year, 81 more than in 2016. Wage costs increased from Kc285m to Kc322m, that is by some 13 percent.
The average wage grew by 5 percent in blue-collar professions and by 11 percent in technical professions. The average age of the company’s employees is gradually decreasing to the current 46 years.
Last year in November, Explosia launched operation of a research and development centre, it paid Kc100m for it and part of the costs were covered from EU subsidies.
The company was founded in 1920 and since 2004 is fully owned by the state.
The Research Institute of Industrial Chemistry is part of the company. Explosia used to have two subsidiaries in Slovakia, one of them, IExplosives, is in liquidation since March 2017.