Tallinna Vesi (TVE1T) Q4 2024 earnings summary

Executive summary

• Q4 2024 sales reached €17.7 million, up 13.8% year-over-year, with net profit at €4.2 million, €1.2 million higher than Q4 2023, driven by price increases and stable consumption.

• Full-year net profit was €13.28 million, with sales of €64.38 million, a 5.3% increase; water services accounted for 90.5% of revenue.

• Investments in 2024 totaled €49.53 million, with €16.1 million invested in Q4, supporting major infrastructure upgrades and service continuity.

• Water quality compliance remained high at 99.5% in Q4 and 99.6% for the year; over 60% of customers now use smart water meters.

• Major projects included pipeline reconstruction, treatment plant upgrades, and completion of methane tanks and clarifiers.

Financial highlights

• Q4 2024 sales: €17.7 million; net profit: €4.2 million, up 39.4% year-over-year; full-year net profit: €13.28 million.

• Gross profit for Q4 increased 24.8% to €7.38 million; gross margin improved to 41.7%.

• Staff costs increased by 8.3% due to salary adjustments and new positions; administrative and marketing expenses rose by 21.2%.

• Cash position at end of Q4: €3.6 million, lower due to investment outflows; cash balance decreased by €2.8 million from previous quarter.

• Debt to total capital employed rose to 61.7% at year-end (2023: 58.5%).

Outlook and guidance

• 2025 investment estimate is €61 million, with 85% impacting the regulated asset base; focus on network reconstruction and wastewater treatment.

• No significant increase in water service sales expected for 2025 due to stable consumption and macroeconomic conditions.

• No clear deadline for the next price application approval; process is ongoing.

• Stormwater network development is financed by the City of Tallinn, and customer connections by connection fees.