Comments on results of Stalexport Autostrady Group in 2016Q1

In 2016Q1 Group’s revenue (PLN 65,036 thousand) increased by 19.9% compared to 2015Q1 (PLN 54,263 thousand), mainly due to increase of revenue from management and operation of motorway (increase by 20.1%), including toll revenue (increase by 20.3%) 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 2016Q1 amounted to PLN 860 thousand and remained on a similar level as in 2015Q1 (PLN 841 thousand).

In 2016Q1 Group’s cost of sales (PLN 2,724 thousand) decreased by 86,4% (i.e. by PLN 17,369 thousand) compared to previous year (PLN 20,093 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 17,954 thousand compared to the same period last year.

Taking into account the above the described increase in revenue as well as decrease of costs, the cumulative gross profit in 2016Q1 amounted to PLN 62,312 thousand and increased by 82.4% compared to PLN 34,170 thousand in 2015Q1.

In comparison to 2015Q1 (PLN 923 thousand), Group’s other income in 2016Q1 (PLN 864 thousand) decreased by 6.4%, mainly due to lower income on interests from receivables. Whereas in 2016Q1, the Group recorded administrative expenses (PLN 7,420 thousand) at higher level (increase by 19.6%) than in 2015Q1 (PLN 6,203 thousand), mainly due to higher depreciation and amortisation and higher other external. Other expenses in 2016Q1 in the amount of PLN 33 thousand were higher than in 2015Q1 when they amounted to PLN 18 thousand, but due to their share in the cost structure such did not have significant impact on Results from operating activities in 2016Q1 (PLN 55,723 thousand).

It should also be noted that the negative balance in financial activities recorded in 2016Q1 (PLN 5,233 thousand) was lower (by 12.1%) than in 2015Q1 (PLN 5,956 thousand). This was mainly due to reduction in interest rates. Although it had a neutral impact on the balance of interest on deposits and loans, it however resulted in lower unwinding amount of the discount on provisions.

As a result of activities in 2016Q1 Group achieved higher (by 119.2%) net profit of PLN 41,345 thousand compared to net profit of PLN 18,859 thousand in 2015Q1.

Separate and consolidated condensed financial statements of Stalexport Autostrady for 2016Q1 can be found here.