Comments on results of Stalexport Autostrady Group in 2020Q1-Q3

In 2020Q1-Q3 Group’s revenue amounted to PLN 215,752 thousand and decreased by 19% compared to 2019Q1-Q3 (PLN 266,206 thousand), mainly due to decrease of revenue from management and operation of motorway (decreased by 19.1%), including toll revenue (decreased by 19.2%) 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 2020Q1-Q3 Group’s cost of sales (PLN 75,768 thousand) increased by 17.4% (i.e. by PLN 11,240 thousand) compared to 2019Q1-Q3 (PLN 64,528 thousand), mainly as a result of increase of cost of provision for resurfacing works (PLN 10,402 thousand). Taking into account the above described decrease in revenue and increase in costs, the cumulative gross profit in 2020Q1-Q3 amounted to PLN 139,984 thousand and achieved lower level (decreased by 30.6%), than PLN 201,678 thousand in 2019Q1-Q3.

In comparison to 2019Q1-Q3 (PLN 3,455 thousand), Group’s other income in 2020Q1-Q3 (PLN 8,264 thousand) increased by 139.2%, mainly due to higher rental income from the service areas. In the same period the Group recorded administrative expenses (PLN 55,060 thousand) at lower level (decreased by 53.6%) than in 2019Q1-Q3 (PLN 118,748 thousand) mainly as a result of lower “Payments to the State Treasury” (PLN 14,880 thousand this year, compared to PLN 88,800 thousand in the same period of last year). The noticeable difference in "Payments to the State Treasury" is a result of both 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, as well as change in the moment of calculation of these amounts. In previous years, Group recognized as the calculation day 31 March and 30 September respectively. Starting from year 2020, Group considers as the day of calculation 30 June and 31 December respectively. Other expenses in 2020Q1-Q3 in the amount of PLN 169 thousand were lower than in 2019Q1-Q3, when they amounted to PLN 409 thousand. As a consequence, results from operating activities in 2020Q1-Q3 amounted to PLN 92,985 thousand and were higher (increased by 8.2%) than the one achieved in 2019Q1-Q3 (PLN 85,966 thousand).

It should also be noted, that the negative balance in financial activities recorded in 2020Q1-Q3 (PLN 953 thousand) was lower (by 78.7%) than in 2019Q1-Q3 (PLN 4,470 thousand). This was mainly due to reduction in financial expenses, as a consequence of the full repayment by company SAM, at the end of third quarter of 2019, of credit obligations under the Loan Agreement concluded.

As a result of activities in 2020Q1-Q3 Group achieved higher (by 88.2%) net profit at the level of PLN 88,137 thousand, compared to net profit of PLN 46,825 thousand in 2019Q1-Q3.

Separate and consolidated condensed interim financial statements of Stalexport Autostrady for 2020Q1-Q3 can be found here.