Coventry firm Severn Trent has posted lower annual profits of £266.3 million.
The figure, which was down 3.3% on the previous year, is being put down to investment in infrastructure - and customers using less water.
The company said farmers relied less on supplies because of the wet summer.
Outgoing chief executive Tony Wray, who will retire from the group next spring - said it was a "good financial performance".
Severn Trent, which supplies 4.2 million households and businesses across the Midlands and parts of Wales, recently rejected an approach from an overseas consortium headed by Canadian infrastructure investment group Borealis, but today gave no clues over a fresh bid.
Coventry-based water company Severn Trent, has rejected a preliminary takeover offer from several international investors, including Borealis infrastructure and the Kuwait Investment Office, saying the offer undervalued the business.
"The board of Severn Trent has reviewed the proposal with its advisers and concluded that it completely fails to recognise the existing and potential value of Severn Trent," the company said.
On Tuesday, the water company announced it had received a takeover approach. Financial News magazine reported that it could be around £5billion.
Midlands water firm Severn Trent's underlying pre-tax profits have fallen by 4.6% to £275.3million in the year.
At the FTSE 100 company’s annual financial results, they announced revenues for the period were £1.77 billion, up from £1.71 billion.
Severn Trent supplies water to eight million customers across the Midlands and have pledged to invest an extra £150million into its network.
More than a thousand bottles of illegal alcohol seized by Derbyshire trading standards in December is going to be turned into electricity.
Severn Trent will mix the contaminated alcohol with chemicals to generate enough energy to power hundreds of homes.
British Waterways has warned that there's not enough water in some Leicestershire canals to keep boats afloat.
Many parts of the Midlands are experiencing the impact of months of dry weather.
Today Severn Trent said the situation has got so bad it's looking to transfer water from wetter areas to those that have been hit by the drought.
Peter Hearne, drain cleaner for Severn Trent.
"I'll have a bet with you. You pick 10, I bet you 8 of them are blocked".
"And what was the cause of this blockage?"
"Baby wipes, sanitary products, fat. Fat and grease mainly. People are using these sanitary wipes, cleansing wipes, make up wipes, all throwing it down. That's what it is. The drains just aren't made for it."
A number of Derbyshire schools have closed this afternoon because of problems with the water supply in the Long Eaton area.
West Park Leisure Centre has cancelled swimming sessions and some public toilets are closed.
Severn Trent says its engineers are working to solve the problem.