Comments on results of Stalexport Autostrady Group in 2022H1

In 2022H1 Group’s revenue amounted to PLN 187,720 thousand and increased by 18.2% compared to 2021H1 (PLN 158,847 thousand), mainly due to increase of revenue from management and operation of motorway (increased by 18.3%), including toll revenue (increased by 18.3%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). In 2022H1 Group’s cost of sales (PLN 93,597 thousand) increased by 73.9% (i.e. by PLN 39,785 thousand) compared to 2021H1 (PLN 53,812 thousand), mainly as a result of increase of cost of creating a provision for resurfacing works (PLN 36,760 thousand in current period, compared to PLN 1,114 thousand in 2021H1). The increase in this position is a consequence of rising prices in the construction market. The company updated 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  significant  transfer of funds to cash reserve account, 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 2022H1 amounted to PLN 94,123 thousand and achieved lower level (decreased by 10.4%) than PLN 105,035 thousand in 2021H1.

In comparison to 2021H1 (PLN 2,627 thousand), Group’s other income in 2022H1 (PLN 2,718 thousand) increased by 3.5%, mainly due to higher rental income from passenger service areas and higher gain from the sale of property, plant and equipment. In the same period the Group recorded administrative expenses (PLN 27,817 thousand) at lower level (decreased by 34.6%) than in H1 of last year (PLN 42,545 thousand), mainly due to lack of “Payments to the State Treasury” which occurred in the comparative H1 of last year (PLN 20,944 thousand). Other expenses in 2022H1 in the amount of PLN 262 thousand were higher than those in 2021H1, when they amounted to PLN 156 thousand. Impairment losses on trade and other receivable in 2022H1 amounted to PLN 3 thousand, compared to losses of PLN 454 thousand in 2021H1. As a consequence, results from operating activities in 2022H1 amounted to PLN 68,759 thousand and were higher (increased by 6.6%) than the ones achieved in 2021H1 (PLN 64,507 thousand).

The negative balance in financial activities recorded in 2022H1 (PLN 1,691 thousand) achieved a lower level (by 90.2%) than in 2021H1 (PLN 889 thousand). This result is the combined effect of higher interest income on cash and non-current deposits and higher costs of discounting provisions caused by increases in the interest rates used to discount these provisions. As a result of the above, profit before income tax in 2022H1 amounted to PLN 67,130 thousand and was higher (increased by 5.5%) than the one achieved in 2021H1 (PLN 63,642 thousand).

As a result of activities in 2022H1 Group achieved net profit at the level of PLN 48,976 thousand, which is at comparable level to net profit in 2021H1 (PLN 48,819 thousand).

Separate and consolidated condensed interim financial statements of Stalexport Autostrady for 2022H1 can be found here.