Comments on results of Stalexport Autostrady Group in 2020

In 2020 Group’s revenue amounted to PLN 289,545 thousand and decreased by 18% compared to 2019 (PLN 351,487 thousand), mainly due to decrease of revenue from management and operation of motorway (decreased by 17.8%), including toll revenue (decreased by 17.8%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). The observed decreases in revenues is a consequence of the limitations of social and economic activity, caused by the spread of SARS-CoV-2 coronavirus and COVID-19 illness cases, of which the Group informs in special weekly current reports. While in 2020 Group’s cost of sales (PLN 96,069 thousand) increased by 7.8% (i.e. by PLN 6,972 thousand) compared to 2019 (PLN 89,097 thousand), mainly as a result of increase of cost of provision for resurfacing works (PLN 6,781 thousand). Taking into account the above described decrease in revenue and increase in costs, the cumulative gross profit in 2020 amounted to PLN 193,476 thousand and achieved lower level (decreased by 26.3%), than PLN 262,390 thousand in 2019. 

In comparison to 2019 (PLN 6,313 thousand), Group’s other income in 2020 (PLN 8,103 thousand) increased by 28.4%, mainly due to higher rental income from the service areas. In the same period the Group recorded administrative expenses (PLN 101,033 thousand) at lower level (decreased by 27.3%) than in 2019 (PLN 139,033 thousand), mainly as a result of lower “Payments to the State Treasury” (PLN 44,610 thousand this year, compared to PLN 88,800 thousand last year). The noticeable difference in "Payments to the State Treasury" is a result of smaller basis for calculations of these payments in the current period, as a consequence of the impact of the SARS-CoV-2 coronavirus and COVID-19 illness cases on the activity of the Group. Other expenses in 2020 in the amount of PLN 225 thousand were lower than in 2019, when they amounted to PLN 514 thousand. As a consequence, results from operating activities in 2020 amounted to PLN 100,291 thousand and were lower (decreased by 22.3%) than the one achieved in 2019 (PLN 129,153 thousand). 

It should also be noted, that the negative balance in financial activities recorded in 2020 (PLN 1,368 thousand) was lower (by 69.7%) than in 2019 (PLN 4,518 thousand). This was mainly due to reduction in financial expenses, as a consequence of the full repayment by company Stalexport Autostrada Małopolska S.A., at the end of third quarter of 2019, of credit obligations under the concluded Loan Agreement and lower costs of discounting provisions. It should be noted, however, that as a result of decreasing interest rates, the Group recorded lower interest on deposits.

Apart from the factors described above, the results were significantly influenced by the recognition, by the Group, of “Payments to the State Treasury” as deductible expenditures, including with regard to payments made in previous years. As a result of this change in treatment, the Group was reimbursed in 2020 for overpaid corporate income tax for years 2018-2019 in the total amount of PLN 17,995 thousand, which was reflected in the income tax expense item.

As a result of above Group achieved higher (by 13.8%) net profit at the level of PLN 91,456 thousand, compared to net profit of PLN 80,396 thousand in 2019.

Separate and consolidated financial statements of Stalexport Autostrady for year 2020 can be found here.