|
Unit |
2018/2019 |
2017/2018 |
Change |
||||
|---|---|---|---|---|---|---|---|---|
Total sales |
EUR mill. |
160.0 |
137.8 |
16.1% |
||||
EBIT |
EUR mill. |
10.9 |
9.3 |
17.2% |
||||
Investments in property, plant and equipment and intangible assets |
EUR mill. |
11.3 |
5.9 |
91.5% |
||||
Workforce (on average) |
FTE |
1,618 |
1,554 |
4.1% |
||||
Invoiced drinking water volume |
m3 mill. |
47.6 |
46.3 |
2.8% |
||||
Invoiced waste water volume |
m3 mill. |
44.2 |
43.8 |
0.9% |
General conditions in the Czech Republic
In the Water segment, the favourable macroeconomic data and higher water distribution due to heat and dry conditions were reflected in a positive sales development and in increasing services business order volumes. There were no significant changes as part of the annual adjustment of the pricing regime in the Czech Republic, which focuses on the appropriate profit of operating and infrastructure companies. Due to weather conditions, sales in heating were slightly impaired by the mild winter.
However, the generally very positive economic development in the Czech Republic drives competition on the labour market, as is reflected in the unemployment rate in the Czech Republic – the lowest in the European Union. This situation on the labour market is particularly challenging in view of the high average age of the Czech subsidiaries' workforce.
The Czech koruna remained largely stable in the course of the 2018/2019 fiscal year.
Business development in the Czech Republic segment
Sales revenues in the newly created Czech Republic segment totalled to EUR 160.0 million in the water and district heating sectors in the 2018/2019 fiscal year. EBIT amounted to EUR 10.9 million in the reporting period.
The significant increase in sales revenues and EBIT in the Czech Republic segment was primarily attributable to the integration of the heating activities in the Czech Republic and from increases in the core business of drinking water supply and waste water disposal. Service sales revenues were above the previous year's level. Moreover, growth was achieved in construction assembly services and in wholesale revenues.
Due to the higher than average temperatures and resulting lower sales volumes in the reporting period, the income generated by the heat-related business in the Czech Republic was slightly lower than in the previous year.
Stable development in the Czech Republic
In the Czech Republic segment, a total of 47.6 million m3 of drinking water and 44.2 million m3 of waste water were invoiced; this is equivalent to a slight increase on the previous year's figures. As at 30 September 2019, around 921,000 inhabitants were supplied with drinking water; waste water disposal was handled for around 714,000 inhabitants.
Invoiced drinking water volume
in m3 mill.
Invoiced waste water volume
in m3 mill.
Like every year, fee negotiations with the municipal contracting parties were scheduled for numerous operator contracts in the water business during the reporting period. Smaller bidding procedures took place place in a number of supply areas in the course of the fiscal year. The number of operating or concession agreements, and heat supply agreements has remained constant since the beginning of the fiscal year.
In the areas of research, development and innovation, the focus in the 2018/2019 fiscal year continued to be on reducing non-revenue water as well as on digitalising operations and customer services. Significant development steps were taken in each of these areas. For the first time in the Czech Republic, area-wide water leak detection was carried out using satellite technology in the Beroun district. In the smart water meter sector, the application “Water under Control”, developed by ČEVAK a.s., is a trend-setting solution for water customers and suppliers; it is already developing excellently shortly after the market launch.
The heat sales volume in the Czech Republic, which was previously allocated to the Energy segment, amounted to 175 GWh in the reporting period, remaining stable. As at 30 September 2019, some 48,000 inhabitants were supplied with heat.