Comments on results of Stalexport Autostrady Group in 2018

In 2018 Group’s revenue (PLN 336,529 thousand) increased by 5.6% compared to 2017 (PLN 318,831 thousand), mainly due to increase of revenue from management and operation of motorway (increased by 5.6%), including toll revenue (increased by 5.6%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). Whereas Group’s revenues from the activity not related to the motorway in 2018 amounted to PLN 3,250 thousand and are on a comparable level to 2017 (PLN 3,236 thousand).

In 2018 Group’s cost of sales (PLN 52,198 thousand) decreased by 26.0% (i.e. by PLN 18,309 thousand) compared to 2017 (PLN 70,507 thousand), mainly as a result of decrease of cost of provision for resurfacing works (by PLN 25,647 thousand).

Taking into account the above described increase in revenue and decrease in costs, the cumulative gross profit in 2018 amounted to PLN 284,331 thousand and achieved higher level (increased by 14.5%), than PLN 248,324 thousand in 2017.

In comparison to 2017 (PLN 5,926 thousand), Group’s other income in 2018 (PLN 10,396 thousand) increased by 75.4%, mainly due to rental income from passenger service areas (PLN 6,756 thousand) and reimbursement of real estate tax paid for previous years (PLN 3,005 thousand). In the same period the Group recorded administrative expenses (PLN 48,687 thousand) at higher level (increased by 35.8%) than in 2017 (PLN 35,845 thousand) mainly as a result of the costs related to “Payments to the State Treasury” incurred for the first time in 2018 (PLN 5,912 thousand net) and of the increase in taxes and charges (PLN 3,001 thousand) and in employee benefit expenses (PLN 2,781 thousand). Other expenses in 2018 in the amount of PLN 3,282 thousand were higher than in 2017, when they amounted to PLN 2,047 thousand, mainly due to the reversal of rental income from passenger service areas for previous periods due to reimbursement of real estate tax paid (PLN 3,005 thousand). As a consequence, results from operating activities in 2018 amounted to PLN 242,701 thousand and were higher by 12.1% than in 2017 (PLN 216,409 thousand).

It should also be noted, that the negative balance in financial activities recorded in 2018 (PLN 7,740 thousand) was substantially lower (by 57.5%) than in 2017 (PLN 18,196 thousand). This was mainly due to reduction in financial expenses, as a result of successive repayment of financial liabilities.

As a result of activities in 2018 the Group achieved higher (by 17.4%) net profit of PLN 186,428 thousand, compared to net profit of PLN 158,780 thousand in 2017.

Separate and consolidated financial statements of Stalexport Autostrady for 2018 can be found here.