ČD Group profits record, freight boosted

ČD Group profits record, freight boosted
© ČD

České dráhy (ČD) Group has reported record profits, boosted by strategic expansion in freight transport, including successful ventures into international markets.

České dráhy (ČD), the Czech national railway operator, achieved a remarkable pre-tax profit of approx EUR 153 million last year, its highest ever under International Financial Reporting Standards (IFRS). This financial milestone was supported by all segments, including a historic performance in passenger transport. According to Michal Krapinec, CEO of ČD, this success underlines the effectiveness of the company's strategic direction, especially in difficult economic times.

"The last year was a period of extraordinary success, confirming the right direction of our strategy. After difficult years from 2020 to 2022, we achieved a profit of almost four billion (CZK)," Krapinec stated. He highlighted that the profitability extended across all corporate divisions, reflecting the comprehensive strength of ČD's operations.

Significant investments continued, with almost approx EUR 437 million spent on new trains to improve service quality and capacity. Krapinec emphasised the importance of these investments: "The new trains are essential for us, and the money we earn goes directly to their purchase. They guarantee a higher demand for our services".

A notable highlight of the year, however, was the performance of ČD Cargo, which alone generated a pre-tax profit of EUR 29 million, an increase of EUR 17 million on the previous year. Tomáš Tóth, Chairman of the Board of Directors of ČD Cargo, attributed this success to robust growth on international markets and strategic responses to changing customer requirements. "Our performance abroad is growing by tens of percentage points, reflecting our strategic expansion into foreign markets," said Tóth.

Despite a decline in domestic transport volumes, mainly due to a reduction in the transport of fossil fuels, ČD Cargo's proactive shift towards new market segments, such as biomass and circular economy products, has begun to mitigate these effects. "The structure of goods transported by rail is gradually starting to change," said Tóth, pointing to the strategic shift towards sustainable transport options.

This strategic foresight has enabled ČD Cargo and its subsidiaries to close the year in the black, despite the wider challenges facing the European rail sector, and provides a positive outlook for the future of the company's freight operations.

Financial Results Before Taxation (in EUR million)
Entity 2023 2022 2021 2020
ČD Group 153.04 15.84 -80.48 -172.24
ČD, a.s. 118.48 0.56 -87.92 -160.52
ČD Cargo, a.s. 29.32 12.40 15.52 -8.64
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