Athens Water Supply and Sewerage Company SA (EYDAP) H1 2024 earnings summary

Executive summary

• Turnover rose by 7.2% year-over-year to €174.5m in H1 2024, driven by a 7.5% increase in water consumption due to prolonged high temperatures and drought conditions.

• Profits before taxes surged by 674% to €14.5m, reflecting higher revenues, improved operational efficiency, and lower provisions.

• Net income increased to €10.0m from €0.7m in H1 2023, a 1351% year-over-year rise.

• EBITDA rose 57% to €30.2m, with the EBITDA margin improving to 17.3% from 11.8% in H1 2023.

• Measures to address climate change and water scarcity included alternative water sources and consumer awareness campaigns.

Financial highlights

• Gross profit grew 32% year-over-year to €72.8m, with gross margin improving to 41.7%.

• EBIT turned positive at €8.5m from a loss in H1 2023, with EBIT margin rising to 4.9%.

• Operating expenses remained stable (+0.2%), with personnel costs up 9.6% and utility expenses down 13%.

• Operating costs rose slightly by 1.5% to €166.1m, mainly due to one-off personnel payments and a new collective agreement.

• Operating cash flow was negative at -€4.98m, mainly due to working capital changes, but improved from -€19m in H1 2023.

Outlook and guidance

• Growth initiatives and expansion depend on the implementation of a new regulatory framework and state decisions on expansion into adjacent areas and islands.

• Communication campaigns to reduce water consumption may impact future revenues.

• Consumption is expected to normalize as temperatures drop and conservation efforts increase.