Comments on results of Stalexport Autostrady Group in 2019Q1-Q3

In 2019Q1-Q3 Group’s revenue amounted to PLN 266,206 thousand and increased by 4.3% compared to 2018Q1-Q3 (PLN 255,207 thousand), mainly due to increase of revenue from management and operation of motorway (increased by 4.3%), including toll revenue (increased by 4.4%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). While in 2019Q1-Q3 Group’s cost of sales (PLN 64,528 thousand) increased by 57.4% (i.e. by PLN 23,539 thousand) compared to 2018Q1-Q3 (PLN 40,989 thousand*), mainly as a result of increase of cost of provision for resurfacing works (PLN 20,183 thousand). Taking into account the above described simultaneous increase in revenue and costs, the cumulative gross profit in 2019Q1-Q3 amounted to PLN 201,678 thousand and achieved lower level (decreased by 5.9%), than PLN 214,218 thousand* in 2018Q1-Q3.

 In comparison to 2018Q1-Q3 (PLN 5,683 thousand), Group’s other income in 2019Q1-Q3 (PLN 3,455 thousand) decreased by 39.2%, 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 118,748 thousand) at much higher level (increased by 383.5%) than in 2018Q1-Q3 (PLN 24,558 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 88,800 thousand net). Other expenses in 2019Q1-Q3 in the amount of PLN 409 thousand were lower than in 2018Q1-Q3, when they amounted to PLN 3,175 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 2019Q1-Q3 amounted to PLN 85,966 thousand and were lower (decreased by 55.3%) than the ones achieved in 2018Q1-Q3 (PLN 192,109 thousand*).

 It should also be noted, that the negative balance in financial activities recorded in 2019Q1-Q3 (PLN 4,470 thousand) was lower (by 58.2%) than in 2018Q1-Q3 (PLN 10,700 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 2019Q1-Q3 Group achieved lower (by 67.9%) net profit at the level of PLN 46,825 thousand, compared to net profit of PLN 145,926 thousand* in 2018Q1-Q3.

 Separate and consolidated condensed financial statements of Stalexport Autostrady for 2019Q1-Q3 can be found here.

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