Comments on results of Stalexport Autostrady Group in 2019H1

In 2019H1 Group’s revenue amounted to PLN 167,962 thousand and increased by 4.8% compared to 2018H1 (PLN 160,244 thousand), mainly due to increase of revenue from management and operation of motorway (increased by 4.8%), including toll revenue (increased by 5.0%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). While in 2019H1 Group’s cost of sales (PLN 45,837 thousand) increased by 126.9% (i.e. by PLN 25,640 thousand) compared to 2018H1 (PLN 20,197 thousand*), mainly as a result of increase of cost of provision for resurfacing works (PLN 23,714 thousand). Taking into account the above described simultaneous increase in revenue and costs, the cumulative gross profit in 2019H1 amounted to PLN 122,125 thousand and achieved lower level (decreased by 12.8%), than PLN 140,047 thousand* in 2018H1.

 In comparison to 2018H1 (PLN 4,910 thousand), Group’s other income in 2019H1 (PLN 1,987 thousand) decreased by 59.5%, mainly due to recorded in comparative period of last year reimbursement of real estate tax paid for previous years (PLN 3,005 thousand). In the same period the Group recorded administrative expenses (PLN 62,766 thousand) at much higher level (increased by 278.4%) than in 2018H1 (PLN 16,588 thousand*) mainly as a result of the costs incurred in the current period, but not in comparative period of the last year, related to “Payments to the State Treasury” (PLN 44,356 thousand net). Other expenses in 2019H1 in the amount of PLN 321 thousand were lower than in 2018H1, when they amounted to PLN 3,110 thousand, mainly due to recorded in comparative period of last year 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 2019H1 amounted to PLN 61,009 thousand and were lower (decreased by 51.3%) than the one achieved in 2018H1 (PLN 125,200 thousand*).

 It should also be noted, that the negative balance in financial activities recorded in 2019H1 (PLN 2,063 thousand) was lower (by 73.6%) than in 2018H1 (PLN 7,826 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 2019H1 Group achieved lower (by 60%) net profit at the level of PLN 37,541 thousand, compared to net profit of PLN 93,963 thousand* in 2018H1.

 Separate and consolidated condensed interim financial statements of Stalexport Autostrady for 2019H1 can be found here.

 * Restated due to due to change of treatment with regard to "Concession fees"