Comments on results of Stalexport Autostrady Group in 2014Q1-Q3

In 2014Q1-Q3 Group’s sales revenue increased by 8.5% compared to 2013Q1-Q3, mainly due to the increase of revenue from management and operation of motorway, including the revenue on toll collection (increase by 8.5%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). Whereas Group’s revenue from the activity not related to the motorway in 2014Q1-Q3 amounted to PLN 2,563 thousand and was higher by 2.0% than in 2013Q1-Q3 (PLN 2,513 thousand).

In parallel, in 2014Q1-Q3 Group’s cost of sales increased (by 43.6%) in comparison to 2013Q1-Q3, mainly due to higher cost of resurfacing provisions in connection with a change in estimates.

Taking into account the above the described increase in revenues as well as the level of costs, the cumulative gross profit on sales in 2014Q1-Q3 amounted to PLN 99,808 thousand and decreased compared to PLN 107,155 thousand in the corresponding quarter of previous year.

In comparison to 2013Q1-Q3 (PLN 3,703 thousand), Group’s other income in 2014Q1-Q3 (PLN 3,167 thousand) has decreased (by 14.5%), mainly due to less interest on receivables and lower reversal of provisions and write-offs. Whereas also in the same period, the Group recorded administrative expenses (PLN 19,737 thousand) at almost the same level (decrease by 0.3%) as in the previous year (PLN 19,788 thousand). Other operating expenses in 2014Q1-Q3 at the amount of PLN 371 thousand were higher than in 2013Q1-Q3 when amounted to PLN 132 thousand, mainly due to loss from the liquidation of property, plant and equipment.

It should also be noted that the negative balance in financial activities recorded in 2014Q1-Q3 (PLN 20,561 thousand) was lower (by 24.9%) than in 2013Q1-Q3 (PLN 27,390 thousand). This was mainly due to reduction in net debt and interest rates which both resulted in lower loan interest, lower value of the discount on provisions as well as lower interest revenue on bank accounts and deposits.

As a result of activities in 2014Q1-Q3 the Group achieved slightly lower (by 1.6%) net profit of PLN 50,233 thousand compared to net profit of PLN 51,050 thousand in 2013Q1-Q3.

The condensed interim separate and consolidated financial statements of Stalexport Autostrady Group for 2014Q1-Q3 can be accessed here.