Comments on results of Stalexport Autostrady Group in 2023Q1

In 2023Q1 Group’s revenue amounted to PLN 103,298 thousand and increased by 13.3% compared to 2022Q1 (PLN 91,211 thousand), mainly due to increase of revenue from management and operation of motorway (increased by 13.2%), including toll revenue (increased by 13.1%) on the toll section of A4 Katowice-Kraków motorway (see detail report here).

In 2023Q1 Group’s cost of sales (PLN 49,476 thousand) increased by 29.4% compared to 2022Q1 (PLN 38,248 thousand), mainly as a result of increase of cost of creating a provision for resurfacing works (PLN 20,038 thousand in current period, compared to PLN 10,508 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. Taking into account the above described increase of revenue and costs, the cumulative gross profit in 2023Q1 amounted to PLN 53,822 thousand and achieved higher level (increased by 1.6%) than PLN 52,963 thousand in 2022Q1.

In comparison to 2022Q1 (PLN 1,546 thousand), Group’s other income in 2023Q1 (PLN 3,957 thousand) increased by 156%, mainly due to the reimbursement of the costs of protection against the effects of mining damage, increase in interest on receivables and higher other income. In the same period the Group recorded administrative expenses (PLN 18,498 thousand) at higher level (increased by 52%) than in Q1 of last year (PLN 12,167 thousand), which is mainly due to higher costs of other external services (PLN 8,413 thousand in current period, compared to PLN 3,200 thousand in 2022Q1). Other expenses in 2023Q1 in the amount of PLN 147 thousand were higher than those in 2022Q1, when they amounted to PLN 110 thousand, mainly as a effect of repair of damages. Impairment losses on trade and other receivables in 2023Q1 amounted to PLN 17 thousand, compared to PLN 5 thousand in first quarter of the previous year. As a consequence, results from operating activities in 2023Q1 amounted to PLN 39,117 thousand and were lower (decreased by 7.4%) than the ones achieved in 2022Q1 (PLN 42,227 thousand).

The Group recorded positive balance in financial activities in 2023Q1 (PLN 6,893 thousand) in contrast to the negative balance in 2022Q1 (PLN 2,076 thousand). This result is the combined effect of higher interest income on cash but also non-current deposits and higher costs of discounting provisions mainly due to increase in the interest rates. As a result of the above, profit before income tax in 2023Q1 amounted to PLN 46,057 thousand and was higher (increased by 14.7%) than the one achieved in 2022Q1 (PLN 40,168 thousand).

As a result of activities in 2023Q1 Group achieved net profit at the level of PLN 37,283 thousand, which is at higher level (increased by 15.4%) when compared with the net profit in 2022Q1 (PLN 32,305 thousand).

Separate and consolidated condensed interim financial statements of Stalexport Autostrady for 2023Q1 can be found here.