Czech Republic Segment

Framework conditions in the Czech Republic

The development in economic growth in the Czech Republic was at a moderate level in the 2023/2024 fiscal year. While inflation was at 6.9% at the start of the fiscal year, it had dropped to 2.6% by the end of the fiscal year. Unemployment levels were at 3.9% at the end of the reporting period.

In the first quarter of the 2023/2024 fiscal year (1 October 2023 to 31 December 2023), the price cap on electricity and gas introduced by the Czech government applied. Stabilisation of the energy prices on the procurement market at a significantly lower level lead to the discontinuation of the price cap on energy prices not impacting on earnings in the Czech Republic Segment. As markets cooled, the companies in the Czech Republic segment restored stability in their business activities. Due to lower market prices, electricity procurement for the entities in the Czech Republic Segment had a favourable effect on the corresponding expense items compared with the 2022/2023 fiscal year.

The Czech koruna declined slightly in the reporting period compared with the same period of the previous year. The exchange rate of the Czech koruna to the euro was EUR/CZK 24.96 in the reporting period, compared with EUR/CZK 23.94 in the same period of the previous year.

Business development in the Czech Republic Segment

In the 2023/2024 fiscal year, the Czech Republic Segment generated sales revenues of EUR 235.1 million. This was equivalent to a slight increase of 2.4% compared with the previous year (previous year: EUR 229.7 million), which was mainly attributable to the price increase and higher sales volumes in the Drinking Water and Waste Water unit during the reporting period, and to higher sales revenues in the services sector.

The EBIT in the Czech Republic Segment amounted to EUR 11.4 million in the reporting period. This is equivalent to an increase of 8.6% (previous year: EUR 10.5 million), which is mainly attributable to higher sales volumes and higher earning contributions in the water and waste water sector. The services sector focuses on construction services for the municipal water management infrastructure, sewer services, smart meters and other services, and also showed a positive development in the 2023/2024 fiscal year. In contrast to this, expenses, impairments and provisions due to flood damage caused by the storms in September 2024 had a negative influence on EBIT.

Stable volume development in the Czech Republic

In the Czech Republic Segment, a total of 49.0 million m³ of drinking water and 45.6 million m³ of waste water were invoiced in the reporting period.

Invoiced drinking water volume

in m³ mill.

Invoiced waste water volume

in m³ mill.

All major tenders for drinking water and wastewater in the reporting period were won. The most important contract extensions were in the cities Písek, Hluboká nad Vltavou and in Zliv (all with ČEVAK a.s.).

Progress was made on the energy efficiency projects initiated a year earlier in the 2023/2024 fiscal year. Beyond the renovation of the sewage gas cogeneration plant in České Budějovice (ČEVAK a.s.), further new energy projects were launched. It also proved possible to implement comparable measures for the energy-intensive aeration systems of wastewater treatment plants at other locations by continuing the energy efficiency programs launched in the 2022/2023 fiscal year. In the heating sector, for example, the installation of the second biomass reactor in Vimperk (Energie AG Teplo Vimperk s.r.o.) led to a significant increase in the use of biogenic energy. Environmentally friendly heat generation options are also being planned and implemented at other locations. The tender for supplying heat to the hospital was won at the Kolín site (Energie AG Kolín a.s.). In the 2023/2024 fiscal year, further PV projects were extended in order to reduce external energy requirements. Beyond this, electromobility is becoming increasingly important. Due to this, work on expanding the e-mobility charging infrastructure at the company’s own locations is being accelerated. It proved possible to plan and implement further smart meter projects in cooperation with communities, towns and water boards.

The heat sales volume in the Czech Republic amounted to 187 GWh in the reporting period; this is 5.1% below the previous year’s figure (197 GWh) due to a mild winter and customer savings. In part, the lower heat sales volume was compensated for by new customer connections, such as those in Vimperk and Kolín.