Czech Republic Segment

Framework conditions in the Czech Republic

Economic growth in the Czech Republic stagnated slightly in the first half of 2023/2024. Inflation also declined in the reporting period falling to 2.2% by the end of the first half of the 2023/2024 fiscal year. The unemployment rate remained near full employment, as during the 2022/2023 fiscal year.

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 continued to apply. Now that energy prices on the procurement market have stabilised at a significantly lower level, the discontinuation of the price cap will not have any impact on the Czech Republic Segment.

In the area of electricity procurement for drinking water supply, wastewater disposal and the heating sector in the Czech Republic Segment, the lower market prices compared to the first half of 2022/2023 had a positive effect on the matching expense items.

The Czech koruna declined in the first half of the 2023/2024 fiscal year compared to the same period of the previous year. The exchange rate was around EUR/CZK 25.25 towards the end of the reporting period, with the closing rate on 31 March 2023 being EUR/CZK 23.50.

Business development in the Czech Republic Segment

In the first half of the 2023/2024 fiscal year, the Czech Republic Segment generated sales revenues of EUR 121.5 million in its water and heating business. This was equivalent to a slight increase of 1.0% compared with the previous year (previous year: EUR 120.3 million), which was mainly attributable to the price increase 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 7.8 million in the reporting period. This is equivalent to an increase of 62.5% (previous year: EUR 4.8 million), which is primarily attributable to lower expenditure on energy compared to the first half of 2022/2023. Energy prices have fallen to a significantly lower level since the past fiscal year.

Stable development of sales volumes in the Czech Republic

In the Czech Republic Segment, a total of 24.4 million m³ of drinking water and 22.8 million m³ of waste water were invoiced in the reporting period. This corresponds to the previous year's level.

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 Hluboká nad Vltavou and in Zliv (both with ČEVAK a.s.).

To compensate for high energy prices, energy efficiency campaigns were successively launched at operational subsidiaries in the 2022/2023 fiscal year. By the end of the 2022/2023 fiscal year, further energy savings had already been achieved by renewing the aeration system at the VS Chrudim a.s. wastewater treatment plant. Similar campaigns will subsequently be implemented at other plants in the Czech Republic Segment. In order to make the heat supply more sustainable and efficient, a second biomass boiler was put into operation at EAG Teplo Vimperk s.r.o. Environmentally friendly heat generation options are also being planned and driven forward at other locations. In addition, PV projects are being pushed forward with mainly proprietary infrastructure with a view to reducing requirements for external energy.

The heat sales volume in the Czech Republic amounted to 141 GWh in the reporting period, which is 3.4% below the previous year's figure (146 GWh) due to the mild winter and additional customer savings.