Comments on results of Stalexport Autostrady Group in 2020Q1

In 2020Q1 Group’s revenue amounted to PLN 73,210 thousand and decreased by 7.7% compared to 2019Q1 (PLN 79,310 thousand), mainly due to decrease of revenue from management and operation of motorway (decreased by 7.8%), including toll revenue (decreased by 7.9%) 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 cases, of which the Group has already reported earlier in current reports. While in 2020Q1 Group’s cost of sales (PLN 24,038 thousand) increased by 3.2% (i.e. by PLN 751 thousand) compared to 2019Q1 (PLN 23,287 thousand). Taking into account the above described decrease of revenue and increase of costs, the cumulative gross profit in 2020Q1 amounted to PLN 49,172 thousand and achieved lower level (decreased by 12.2%), than PLN 56,023 thousand in 2019Q1.

In comparison to 2019Q1 (PLN 1,077 thousand), Group’s other income in 2020Q1 (PLN 4,441 thousand) increased by 312.3%, mainly due to higher rental income from passenger service areas. In the same period the Group recorded administrative expenses (PLN 12,883 thousand) at lower level (decreased by 70.1%) than in Q1 of last year (PLN 43,064 thousand). The noticeable difference in administrative expenses is the result of a change in the moment of calculation of amounts due to "Payments to the State Treasury". In previous years, Group recognized as the calculation day 31 March and 30 September respectively (PLN 34,941 thousand was recognised in 2019Q1). Starting from year 2020, Group considers as the day of calculation 30 June and 31 December respectively, therefore Group has not recognised any “Payments to the State Treasury” at the end of 2020Q1. While other expenses in 2020Q1 in the amount of PLN 81 thousand were lower than those in 2019Q1, when they amounted to PLN 249 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 214 thousand). As a consequence, results from operating activities in 2020Q1 amounted to PLN 40,650 thousand and were higher (increased by 194.8%) than the ones achieved in 2020Q1 (PLN 13,787 thousand).

It should also be noted, that the negative balance in financial activities recorded in 2020Q1 (PLN 145 thousand) was lower (by 87.6%) than in 2019Q1 (PLN 1,171 thousand). This was mainly due to reduction in financial expenses, as a result of total repayment of long-term financing for the A4 Katowice - Krakow project financial liabilities in year 2019.

As a result of activities in 2020Q1 Group achieved higher (by 535.9%) net profit at the level of PLN 31,990 thousand, compared to net profit of PLN 5,031 thousand in 2019Q1.

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