Comments on results of Stalexport Autostrady Group in 2019Q1

In 2019Q1 Group’s revenues amounted to PLN 79,310 thousand and increased (i.e. by PLN 3,395 thousand) by 4.5% compared to 2018Q1 (PLN 75,915 thousand), mainly due to increase of revenue from management and operation of motorway, including toll revenue on the toll section of A4 Katowice-Kraków motorway (see detailed report here). While in 2019Q1 Group’s cost of sales (PLN 23,287 thousand) increased by 6.7% (i.e. by PLN 1,458  thousand) compared to 2018Q1 (PLN 21,829* thousand).Taking into account the above described simultaneous increase in revenue and costs, the cumulative gross profit in 2019Q1 amounted to PLN 56,023 thousand and achieved higher level (increased by 3.6%) than PLN 54,086* thousand in 2018Q1.

In comparison to 2018Q1 (PLN 3,747 thousand), Group’s other income in 2019Q1 (PLN 1,077 thousand) decreased by 71.3%, mainly due to recorded in comparative period the reimbursement of real estate tax paid for previous years (PLN 3,005 thousand). In current period the Group recorded administrative expenses (PLN 43,064 thousand) at much higher level (increased by 473.7%) than in Q1 of last year (PLN 7,507* thousand) mainly as a result of the costs incurred in the current period, but not incurred in comparative period, related to “Payments to the State Treasury” (PLN 34,941 thousand net). Other expenses in 2019Q1 in the amount of PLN 249 thousand were lower than those in 2018Q1, when they amounted to PLN 3,051  thousand, mainly due to recorded in comparative period 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, the result from operating activities in 2019Q1 amounted to PLN 13,787 thousand and were lower (decrease by 70.8%) than the one achieved in Q1 of the previous year (PLN 47,262* thousand).

It should be also noted, that the negative balance in financial activities recorded in 2019Q1 (PLN 1,171  thousand) was lower (by 71,0%) than in 2018Q1 (PLN 4,044 thousand). This was due to reduction in financial expenses, as a result of successive repayment of financial liabilities. As a result of activities in 2019Q1 Group achieved lower (by 85.6%) net profit at the level of PLN 5,031 thousand, compared to PLN 35,022* thousand net profit in 2018Q1.

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

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