Comments on results of Stalexport Autostrady Group in 2015Q1-Q3

In 2015Q1-Q3 Group’s revenue (PLN 195,071 thousand) increased by 16.9% compared to 2014Q1-Q3 (PLN 166,867 thousand), mainly due to increase of revenue from management and operation of motorway (increase by 17.2%), including toll revenue (increase by 17.0%) 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 2015Q1-Q3 amounted to PLN 2,510 thousand and was lower by 2.1% then in 2014Q1-Q3 (PLN 2,563 thousand).

In 2015Q1-Q3 Group’s cost of sales (PLN 45,448 thousand) decreased by 32.2% (i.e. by PLN 21,611 thousand) compared to the same period of previous year (PLN 67,059 thousand). A decisive impact on such situation was due to level of costs of created provision for resurfacing works included in cost of sales (external services) which was lower by PLN 22,808 thousand compared to the same period of last year.

Taking into account above described increase in revenue as well as decrease in costs, the cumulative gross profit in 2015Q1-Q3 amounted to PLN 149,623 thousand and increased by 49.9% compared to PLN 99.808 thousand in 2014Q1-Q3.

In comparison to 2014Q1-Q3 (PLN 3,167 thousand), in 2015Q1-Q3 Group showed other income (PLN 6,160 thousand) higher by 94.5%, due to higher lease revenues for use of the property within the motorway roadstrip A4 Katowice-Krakow caused by reimbursements of land tax costs for previous years. Whereas in the same period, the Group recorded administrative expenses (PLN 23,934 thousand) at higher level (increase by 21.3%) than in the same period of last year (PLN 19,737 thousand). This was mainly due to the increase of land tax costs in connection with the payment of taxes for previous years. Other expenses in 2015Q1-Q3 in the amount of PLN 106 thousand were lower than in 2014Q1-Q3 when they amounted to PLN 371 thousand, but due to their share in the cost structure they did not have significant impact on results from operating activities in 2015Q1-Q3 (PLN 131,743 thousand).

It should also be noted that the negative balance in financial activities recorded in 2015Q1-Q3 (PLN 16,666 thousand) was lower (by 18.9%) than in 2014Q1-Q3 (PLN 20,561 thousand). This was mainly due to the gradual repayment of liabilities from loans while increasing long-term investments and cash, and reduction in interest rates which in addition to lowering interest on loans but also bank accounts and deposits, also reduced amount of the discount on provisions.

As a result of activities in 2015Q1-Q3 Group achieved higher (by 85.9%) net profit of PLN 93,376 thousand compared to net profit of PLN 50,233 thousand in 2014Q1-Q3.

Separate and consolidated condensed financial statements of Stalexport Autostrady for 2015Q1-Q3 can be found here.