Comments on results of Stalexport Autostrady Group in 2021Q1

In 2021Q1 Group’s revenue amounted to PLN 73,083 thousand and decreased by 0.2% compared to 2020Q1 (PLN 73,210 thousand), mainly due to decrease of revenue from management and operation of motorway (decreased by 0.2%), including toll revenue (decreased by 0.1%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). It should be noted that maintaining the revenue at a similar level as in 2020Q1 was with persistent limitations of social and economic activity, caused by the spread of SARS-CoV-2 coronavirus and COVID-19 cases, which appeared for the first time at the turn of 2020Q1/2020Q2. While in 2021Q1 Group’s cost of sales (PLN 26,992 thousand) increased by 12.3% (i.e. by PLN 2,954 thousand) compared to 2020Q1 (PLN 24,038 thousand), mainly due to the increase in amortisation and depreciation costs. Taking into account the above described stable level of revenue and increase of costs, the cumulative gross profit in 2021Q1 amounted to PLN 46,091 thousand and achieved lower level (decreased by 6.3%) than PLN 49,172 thousand in 2020Q1.

In comparison to 2020Q1 (PLN 4,441 thousand), Group’s other income in 2021Q1 (PLN 1,379 thousand) decreased by 68.9%, mainly due to lower rental income from passenger service areas primarily in terms of land tax settlement with the tenant of the above-mentioned property. In the same period the Group recorded administrative expenses (PLN 9,984 thousand) at lower level (decreased by 22.5%) than in Q1 of last year (PLN 12,883 thousand), primarily due to the decline in the cost of land taxes and fees. Other expenses in 2021Q1 in the amount of PLN 99 thousand were higher than those in 2020Q1, when they amounted to PLN 81 thousand, mainly due to repair of damages costs. Reversal of impairment losses on trade and other receivable in 2021Q1 amounted to PLN 6 thousand, compared to PLN 1 thousand in first quarter of the previous year. As a consequence, results from operating activities in 2021Q1 amounted to PLN 37,393 thousand and were lower (decreased by 8%) than the ones achieved in 2020Q1 (PLN 40,650 thousand).

The negative balance in financial activities recorded in 2021Q1 (PLN 269 thousand) was higher (by 85.5%) than in 2020Q1 (PLN 145 thousand). This result is the effect of lower costs of discounting provisions and lower interest income on cash, long-term deposits and debt financial instruments.

As a result of activities in 2021Q1 Group achieved lower (by 6.5%) net profit at the level of PLN 29,916 thousand, compared to net profit of PLN 31,990 thousand in 2020Q1.

Separate and consolidated condensed interim financial statements of Stalexport Autostrady for 2021Q1 can be found here.