Comments on results of Stalexport Autostrady Group in 2022

In 2022 Group’s revenue amounted to PLN 413,890 thousand and increased by 14.9% compared to 2021 (PLN 360,162 thousand), mainly due to increase of revenue from management and operation of motorway (increased by 15%), including toll revenue (increased by 15%) on the toll section of A4 Katowice-Kraków motorway (see detail report here).

In 2022 Group’s cost of sales (PLN 191,354 thousand) increased by 52.9% (i.e. by PLN 66,222 thousand) compared to 2021 (PLN 125,132 thousand), mainly as a result of increase of cost of creating a provision for resurfacing works (PLN 78,335 thousand in current period, compared to PLN 19,722 thousand in the previous year). The increase in this position is a consequence of rising prices in the construction market. The company successively makes updates of the costs of works related to the pavement replacement, which it is obliged to carry out by the end of the concession period. As the result of that, there was not only an increase in the cost of creating an accounting provisions, but also a significant transfer of funds to cash reserve account for pavement replacement, which in turn influenced the level of cash constituting the basis for the calculation of "Payments to the State Treasury" referred to below. Taking into account the above described increase of revenue and costs, the cumulative gross profit in 2022 amounted to PLN 222,536 thousand and achieved lower level (decreased by 5.3%) than PLN 235,030 thousand in 2021.

In comparison to 2021 (PLN 5,072 thousand), Group’s other income in 2022 (PLN 6,368 thousand) increased by 25.6%, mainly due to higher other revenues. In the same period the Group recorded administrative expenses (PLN 119,388 thousand) at higher level (increased by 5.2%) than in 2021 (PLN 113,522 thousand), which is mainly a combined effect of lower “Payments to the State Treasury” (PLN 63,249 thousand in year 2021, PLN 47,372 thousand in year 2022) and higher “Other external services”. Other expenses in 2022 in the amount of PLN 3,229 thousand were higher than those in 2021, when they amounted to PLN 658 thousand, mainly as a effect of discontinued investments recognized in previous reporting periods as a utilization of provision (PLN 1,503 thousand) and net loss on disposal of property, plant and equipment and intangible assets (PLN 1,221 thousand). Impairment losses on trade and other receivables in 2022 amounted to PLN 21 thousand, compared to PLN 589 thousand in the previous year. As a consequence, results from operating activities in 2022 amounted to PLN 106,266 thousand and were lower (decreased by 15.2%) than the ones achieved in the previous year (PLN 125,333 thousand).

The Group recorded positive balance in financial activities in 2022 (PLN 9,870 thousand) in contrast to the negative balance in 2021 (PLN 1,718 thousand). This result is the combined effect of higher interest income on cash but also non-current deposits and higher costs of discounting provisions caused by increases in the interest rates. As a result of the above, profit before income tax in 2022 amounted to PLN 116,217 thousand and was lower (decreased by 6%) than the one achieved in the previous year (PLN 123,630 thousand).

As a result of activities in 2022 Group achieved net profit at the level of PLN 85,669 thousand, which is at lower level (decreased by 10.2%) when compared with the net profit in 2021 (PLN 95,415 thousand).

Separate and consolidated financial statements of Stalexport Autostrady for 2022 can be found here.