Money Buzz! Europa

Category: Prague

  • Growth of sale of non-food goods in Czechia in June 2020

    Growth of sale of non-food goods in Czechia in June 2020

    In June, sales decreased in real terms (at constant prices) by 2.0%, year‑on‑year. Sales in retail trade increased by 0.2%, month-on-month.

    Seasonally adjusted sales in retail trade, except of motor vehicles increased in real terms (at constant prices) by 0.2%, m-o-m, in June. Sales for sale of automotive fuel increased by 7.6%, while sales for sale of food decreased by 0.3% and sales for sale of non-food goods dropped by 0.7%.

    Sales in retail trade adjusted for calendar effects decreased by 2.0%, y-o-y. Sales for sale of automotive fuel decreased by 10.8% and sales for sale of food dropped by 3.8%, while sales for sale of non-food goods increased by 1.4%.

    There were two working days more in June 2020 compared to June 2019.

    Non-adjusted sales in retail trade stagnated, y-o-y. Decrease of sale of automotive fuel (by 8.4%) and food (by 3.3%) was compensated by growth of sale of non-food goods (by 4.7%).

    The highest sales growth was in retail sale via mail order houses or via Internet (by 27.8%)

    In specialised stores with non-food goods, sales increased for sale of other household equipment (by 9.9%), information and communication equipment (by 6.1%), cultural and recreation goods (by 4.3%), and dispensing chemist, medical and orthopaedic goods (by 2.3%).

    On the other hand, sales decreased in stores with clothing, footwear and leather goods (by 16.4%).

    Sales for sale of food decreased in specialised stores by 2.4% and in non-specialised stores with food, beverages or tobacco predominating they decreased by 3.4%.

  • Skoda achieves operating profit of 228 million euros in H1 2020

    Skoda achieves operating profit of 228 million euros in H1 2020

    The Skoda Auto Group’s sales revenue was €7.55 billion in the first six months, but the operating profit still amounted to €228 million – despite the 39-day shutdown of the Czech plants and the disruption to the sales channels, particularly in April.

    Against this background, the return on sales stood at 3.0%. Skoda Auto delivered a total of 426.700 vehicles to customers from January to June.

    Provided the COVID-19 situation does not deteriorate significantly again, Skoda Auto expects the conditions on the world markets to stabilise gradually over the coming weeks and months.

    Investments in tangible assets remained at a high level of 261 million euros over the past six months.

    The manufacturer plans to launch 30 new models, derivatives, product upgrades or variants between 2019 and the end of 2022. 

  • Skoda Parts Centre Mladá Boleslav at its 20th anniversary

    Skoda Parts Centre Mladá Boleslav at its 20th anniversary

    Skoda Parts Centre storage area covers 105.000 square metres – roughly the size of 13 football pitches, making it the largest warehouse for genuine parts in the Czech Republic.

    Around 550 employees work in three shifts every day at the Skoda Parts Centre, processing more than 28.000 order items.

    Service businesses in the Czech Republic are supplied with genuine parts overnight, and Skoda partners throughout Europe usually receive their deliveries within 24 hours of ordering.

    In addition to the Czech Republic and Slovakia, it now also serves the Baltic markets, Poland, Russia, Sweden and Norway.

    From September 2020, the Skoda Parts Centre Mladá Boleslav will also supply Volkswagen, Audi and Volkswagen Commercial Vehicles genuine parts to Belarus.

    Every day, around 200 lorries deliver components from 2.000 suppliers from 45 countries to the centre. The parts are shipped by land, water or air freight – 140 HGVs transport the parts daily, and around 50 containers are sent overseas each month.

    Parts from Mladá Boleslav destined for service centres in New Zealand currently travel the longest distance – 18,135 kilometres.

    How Skoda Parts Centre was built

    During the socialist era and the first few years after the revolution, the state enterprise Mototechna was responsible for supplying Skoda vehicles with genuine parts.

    In 1992 the Skoda Auto parent plant in Mladá Boleslav took over the responsibility for distributing genuine parts. At that time, parts orders were processed in different halls, and goods intended for export had to be transported over half a kilometre.

    In 1998, the foundation stone for a new parts warehouse was laid at Řepov near Mladá Boleslav, and two years later the Skoda Parts Centre was officially opened.

    Initially, the floor space covered 36.000 square metres before being expanded to 74.000 square metres in 2013. In 2018 the facility reached its current size of 105.000 square metres of storage space.

    The eleven aisles of the 42-metre tall building hold 40.000 pallets, and storing and retrieving genuine parts and accessories is fully automated.

    In addition to the high-bay warehouse, Skoda Auto also operates a block warehouse with 8.000 pallet slots at Řepov.

    The oldest genuine part currently in stock since 1976

    The oldest genuine part currently in stock is part number 6U0905851B – an ignition switch, which first appeared on 1 August 1976 for Skoda models 105/120/130/135/136, the coupé GARDE and later the FAVORIT/FORMAN and FELICIA series.

    Every year the Skoda Parts Centre ships up to 3,000 of these ignition switches to help keep older ŠKODA models on the road.

  • New housing has become more expensive in most European countries in 2019

    New housing has become more expensive in most European countries in 2019

    New housing has become more expensive in most European countries over the last years, including 2019. Among 23 countries participating in Deloitte Property Index Study, 20 showed growth in prices of new dwellings and only three of them saw a price decrease.

    Experts in the residential real estate market expected the growth trend to continue in 2020, but they became less optimistic in the context of COVID-19 pandemic.

    Thus, in almost half of participating countries, the residential market is expected to stagnate this year in terms of price and experts in only six countries have positive expectations.

    Luxemburg recorded the biggest price increase

    The biggest price increase on the residential market was recorded in Luxemburg, a country which participated in the survey for the first time, with an advance of about 13 percent in 2019 compared to the previous year, followed by France (+12.6 percent) and Spain (+12.4 percent).

    Serbia is on the opposite side, with a 7.4 percent decrease in housing prices in the same period.

    Among the Central and Eastern European countries (CEE), dwellings in Hungary (+11.5 percent), Slovakia (11 percent) and Poland (9.7 percent) recorded the largest price increase on the residential market.

    Czechia, the most expensive market in CEE

    In the CEE, in countries such as Slovakia, Croatia, Poland, Hungary and Serbia, prices range from 1.000 EUR/sqm to 2.000 EUR/sqm.

    In this region, only prices in the Czech Republic exceed the threshold, reaching 2.602 EUR/sqm, especially due to the high share of Prague in the national average.

    Paris is the most expensive city

    In 2019, Paris was the most expensive city in terms of transaction prices of new dwellings, with 12.863 EUR/sqm, in a slight decline (0.4%) compared to 2018.

    By comparison, a square meter of a new dwelling in the city of Nis (Serbia) costed only 790 EUR and was the cheapest among the examined cities in 2019. The average price across all the 67 examined cities was of 3,758 EUR/sqm.

    The ninth edition of Deloitte Property Index, Overview of European Residential Markets, analyzes the evolution of the residential real estate market in 23 European countries and 67 cities during 2019.

  • Czech automotive industry experienced a slight recovery in June 2020

    Czech automotive industry experienced a slight recovery in June 2020

    The Czech automotive industry experienced a slight recovery in June 2020, yet 32.5% fewer motor vehicles produced this year than in 2019.

    In June, bus manufacturers Iveco CR and SOR Libchava were particularly successful, achieving a significant growth of 12.7%.

    Cars

    A total of 503.615 passenger cars were produced in Czechia in the first half of the year, which is 32.6% less than in the same period of 2019.

    Skoda produced 337.580 (- 28.2%). The gradual increase in production caused by the coronavirus pandemic contributed to a gradual increase in its production in June, when the carmaker produced 73.991 more vehicles compared to previous months.

    Nošovický Huyndai produced a total of 96.390 cars (- 39.9%) in the first half of the year, while TPCA produced a total of 69.645 cars, 40.3% less than in the first half of last year.

    Buses and trucks

    In June 2019, Vysokomýtské Iveco produced 37 more buses than in June 2019. SOR Libchavy increased production by 73.3% in June and produced 223 buses.

    Together with KH Motor Centrum Opava, which has produced 9 buses since the beginning of the year, all manufacturers produced 516 buses in June (+ 12.7%).

    Tatra produced a total of 628 trucks in the first half of the year, 143 more than in the first half of last year (i.e. + 29.5%).

    Motorcycles

    The only motorcycle manufacturer, Týnecká JAWA, produced 249 motorcycles in the first half of the year. Compared to the previous year, it saw a decrease in production of 637 units (- 71.9 %).

    Trailers and semi-trailers

    The segment of trailers has not suffered much from the coronavirus pandemic so far.

    Total production in all categories increased slightly by 1.9% in the first half of the year to a total of 15.454 trailers.

    The positive development is mainly due to the increase in production of small trailers produced by Agados to a total of 14.363 vehicles (+ 2.5%).

    Schwarzmüller was successful in the category of large trailers with 908 units produced for January to June (+ 0.5%).

    PANAV, on the other hand, recorded a decrease, both in the trailer category (135 pcs; – 19.2%), and semi-trailers (48 pcs; – 38.5%).

  • The new Czech owner of Slovenian paper mill Vipap bets on flexibility

    The new Czech owner of Slovenian paper mill Vipap bets on flexibility

    While until now newsprint and magazine paper accounted for 90% of the production of Slovenian paper mill Vipap Videm Krško, its share will fall by half within three years.

    As a part of the already started restructuring, the new Czech owner RIDG Holding wants to reorient the company more towards the production of food packaging paper. It invests more than a quarter of a billion Czech crowns in the modern technologies that will enable it.

    RIDG Holding took over Slovenian paper mill last year and the company under its leadership ended the calendar year with a significantly positive operating profit EBITDA of € 7 million and a positive cash flow.

    The new owner, in addition to redesigning the company’s processes, also immediately started investing in technology modernization and employees development, in order to make the company more flexible.

    One of the key innovations in Vipap paper mill is the expansion of the product range

    In addition to newsprint, magazines and advertising leaflets, currently also paper bags, carrier bags and laminated paper is being added.

    This segment of production is on the rise due to the fact that a number of European countries have decided to replace the plastic packaging with paper. In addition, new technologies will make it possible to bring to the market the food packaging, that is durable and at the same time fully recyclable.

    In addition to the expanding product portfolio, the Slovenian government’s support programs also helped Vipap Videm Krško to maintain employment during the coronavirus crisis.

    Like many other countries, including the Czech Republic, it has introduced the so-called kurzarbeit. The extraordinary commitment of employees also played an important role.

    Management of Vipap Videm Krško now estimates that in the event of a favorable development, the company could return to pre-crisis level at the end of this year.

    Completion of the restructuring, which is to direct the paper mill towards long-term competitiveness and growth, is planned for the turn of 2021 and 2022.

  • Skoda Vrchlabí plant launches automated ordering and supply of parts

    Skoda Vrchlabí plant launches automated ordering and supply of parts

    Skoda made another step forward in implementing Industry 4.0 principles into manufacturing at its Vrchlabí component plant: new parts for the CNC processing lines are now ordered automatically.

    They are then transported to the CNC machines by robots guided by Internet of Things (IoT) sensor technology. B

    Parts are now automatically supplied to the CNC processing lines in production. In the warehouse, logistics employees place the required components on a load carrier. Guided by IoT sensor technology, an automatic transport robot then picks up the carrier and takes it to one of the CNC lines.

    On its return journey, the robot takes an empty load carrier with it and automatically reports back to the parts warehouse.

    Due to the use of IoT technologies, the process allows for an automated, continuous supply of parts to where they are needed – further increasing manufacturing productivity.

    Thanks to this system, the CNC machines are able to be supplied with more than 50.000 parts per day. And the costs of this automated process are expected to be covered in less than three years.

    Vrchlabí site modernisation process started in 2012

    In 2012, Skoda comprehensively modernised its Vrchlabí site and converted it into an advanced component plant within just 18 months. In 2015, Vrchlabí was named ‘Factory of the Year’ for its rapid transformation and dynamic development.

    In recent years, Skoda has introduced numerous Industry 4.0 technologies and systematically developed Vrchlabí into a high-tech location. In 2018, for example, the manufacturer started to transport parts between its metrology centre and CNC processing machines using an automatic robot for the first time.

    The component plant in Vrchlabí is set to be the manufacturer’s entirely CO2-neutral production site before the end of this year still. By far the greatest carbon dioxide savings were achieved by switching to using renewable energies. This reduced CO2 emissions from an initial 45,000 tonnes per year to currently only 3,000 tonnes.

  • E.ON sells Innogy’s electricity and gas retail business in Czechia

    E.ON sells Innogy’s electricity and gas retail business in Czechia

    German Energy Company E.ON and MVM Group signed an agreement regarding the sale of Innogy SE’s entire electricity and gas retail business in the Czech Republic for an undisclosed amount.

    The transaction is subject to the approval of the European Commission and is expected to close before year-end.

    Innogy is currently supplying 1.2 million gas customers and 0.4 million electricity customers in the Czech Republic.

    This transaction marks the final step in the fulfilment of the remedies offered by E.ON in the context of the antitrust approval of E.ON’s takeover of Innogy. E.ON has previously entered into agreements for the sale of a significant part of E.ON’s German heating electricity business, part of E.ON’s electricity retail business in Hungary and regarding the discontinuation of the construction and operation of a number of electric-vehicle charging stations on motorways in Germany. 

  • Bernhard Maier to step down as Skoda Auto CEO on 31 July 2020

    Bernhard Maier to step down as Skoda Auto CEO on 31 July 2020

    Bernhard Maier is stepping down as Chairman of the Board of Directors on 31 July 2020 after almost five years of leading Skoda Auto.

    Bernhard Maier began his professional career in 1984 at Nixdorf Computer AG. From 1988 to 2001, Maier held various management positions at BMW AG in Germany and abroad. Among other things, he was project manager for international brand strategy.

    In 2001, Maier took over as Chairman of the Board of Management of Porsche Deutschland GmbH, and in 2010 was appointed Board Member for Sales and Marketing at Dr. Ing. h. c. F. Porsche AG. In this role, Maier radically modernised the trade and sales organisation.

    Under his leadership, the international trade organisation expanded significantly, and worldwide customer deliveries tripled.

    In November 2015, Bernhard Maier was appointed Chairman of the Board of Skoda Auto. Key aspects of the company’s reorientation within the framework of Strategy 2025+ were the areas of electromobility, digitalisation and connectivity, new mobility services and the implementation of a broad-based product campaign for the brand.

    Under Maier’s leadership, Skoda introduced new models such as KODIAQ, KAROQ, KAMIQ and SCALA, developed the ENYAQ iV, the first model designed purely as an electric vehicle, increased sales to approx. 1.3 million vehicles per year and achieved record figures for sales and operating profit.

  • Unemployment rate in Czechia reached 2.5% in May 2020

    Unemployment rate in Czechia reached 2.5% in May 2020

    The unemployment rate of the aged 15–64 years reached 2.5% in May 2020 and increased by 0.4 p.p., year-on-year, Czech Statistical Office shows.

    The male unemployment rate, seasonally adjusted, attained 2.2%; the female unemployment rate reached 2.9%.

    The employment rate of the aged 15–64 years reached 74.4% in May 2020 and decreased by 0.5 percentage point (p.p.) compared to that in May 2019.

    The male employment rate was 81.4%; the female employment rate was 67.2%, both seasonally adjusted.

    The employment rate of persons aged 15–29 years, seasonally adjusted, was 45.7%, in the age group 30–49 years it attained 87.1%, and in the age group 50–64 years it got to 76.2%.

  • Czech Simplebeez becomes OneStream Software implementation partner

    Czech Simplebeez becomes OneStream Software implementation partner

    OneStream Software and Simplebeez announced a strategic partnership to transform Corporate Performance Management (CPM) processes for sophisticated organizations around the globe.

    This new partnership will provide industry-leading software and implementation expertise while driving efficiency in the Office of Finance.

    OneStream provides a unified, SmartCPMTM platform, that simplifies and aligns financial consolidation, planning, reporting, analytics and financial data quality.

    OneStream eliminates the risk and complexity of data integration, validation and reconciliation between multiple products, applications or modules, and makes non-integrated CPM suites a thing of the past.â

    Simplebeez is a Czech based consulting company with a focus on finance transformations.

  • Hostín Development sold over 50% of the homes from Housing Úvaly

    Hostín Development sold over 50% of the homes from Housing Úvaly

    Hostín Development has already sold over 50 percent of the homes from the currently built development project Housing Úvaly.

    Investment manager Arcona Capital started construction of the 20-family houses of different types in April this year.

    The centre of Prague can be reached by car or train, which runs at peak times every 15 minutes and in 25 minutes you can arrive at Masaryk’s railway station.

    Prices of vacant houses range from CZK 7.6 million to CZK 9.9 million including VAT.