Comments on results of Stalexport Autostrady Group in 2020H1

In 2020H1 Group’s revenue amounted to PLN 128,656 thousand and decreased by 23.4% compared to 2019H1 (PLN 167,962 thousand), mainly due to decrease of revenue from management and operation of motorway (decreased by 23.6%), including toll revenue (decreased by 23.7%) 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 has already reported earlier in current reports. In 2020H1 Group’s cost of sales (PLN 44,544 thousand) decreased by 2.8% (i.e. by PLN 1,293 thousand) compared to 2019H1 (PLN 45,837 thousand). Taking into account the above described simultaneous decrease in revenue and costs, the cumulative gross profit in 2020H1 amounted to PLN 84,112 thousand and achieved lower level (decreased by 31.1%), than PLN 122,125 thousand recorded in 2019H1.

In comparison to 2019H1 (PLN 1,987 thousand), Group’s other income in 2020H1 (PLN 5,653 thousand) increased by 184.5%, mainly due to higher rental income from passenger service areas. In the same period the Group recorded administrative expenses (PLN 39,504 thousand) at lower level (decreased by 37.1%) than in 2019H1 (PLN 62,766 thousand) mainly as a result of lower Payments to the State Treasury (PLN 14,880 thousand this year, compared to PLN 44,356 thousand in the same period of last year). Other expenses in 2020H1 in the amount of PLN 141 thousand were lower than in 2019H1, when they amounted to PLN 321 thousand, mainly due to recorded in comparative period of last year reversal of rental income from the rest areas for previous periods due to reimbursement of real estate tax paid (PLN 214 thousand). As a consequence, results from operating activities in 2020H1 amounted to PLN 50,095 thousand and were lower (decreased by 17.9%) than the one achieved in 2019H1 (PLN 61,009 thousand).

It should also be noted, that the negative balance in financial activities recorded in 2020H1 (PLN 665 thousand) was lower (by 67.8%) than in 2019H1 (PLN 2,063 thousand). This was mainly due to reduction in financial expenses as a consequence of the full repayment of credit obligations under the Loan Agreement concluded by the SAM. As a result of activities in 2020H1 Group achieved lower (by 7.8%) net profit at the level of PLN 34,623 thousand, compared to net profit of PLN 37,541 thousand in 2019H1.

Separate and consolidated condensed interim financial statements of Stalexport Autostrady for 2020H1 can be found here.