Comments on results of Stalexport Autostrady Group in 2024Q1

In 2024Q1 Group’s revenue amounted to PLN 127,197 thousand and increased by 23.1% compared to 2023Q1 (PLN 103,298 thousand), mainly due to increase of revenue from management and operation of motorway (increased by 23.3%), including toll revenue (increased by 23.3%) on the toll section of A4 Katowice-Kraków motorway (see detailed report here).

In 2024Q1 Group’s cost of sales (PLN 46,853 thousand) increased by 8.8% compared to 2023Q1 (PLN 43,060 thousand), mainly as a result of increasing depreciation and amortisation costs (increase by PLN 3,889 thousand) and employee benefit expenses (increase by PLN 1.172 thousand), which were accompanied by decreasing costs of provision for resurfacing works (decrease by PLN 1.436 thousand).

In comparison to 2023Q1 (PLN 3,957 thousand), Group’s other income in 2024Q1 (PLN 1,341 thousand) decreased by 66.1%, mainly due to reimbursement of costs of protection against the effects of mining damage in 2023Q1, which were not recorded in the current quarter. In the same period of 2024Q1 the Group recorded administrative expenses (PLN 15,973 thousand) at lower level (decreased by 13.7%) than in Q1 of last year (PLN 18,498 thousand), which is mainly due to changes in expenses due to motorway renovation and maintenance services (lower by PLN 3,890 thousand) and Employee benefit expenses (increase by PLN 1,155 thousand).

Other expenses in 2024Q1 in the amount of PLN 116 thousand were at a lower level, compared to the costs incurred in 2023Q1 (PLN 147 thousand), mainly due to lower costs of repair of damages and penalties and compensations. Impairment losses on trade and other receivables in 2024Q1 amounted to PLN 14 thousand, compared to PLN 17 thousand in the first quarter of the previous year.

In consequence of above the results from operating activities in 2024Q1 amounted to PLN 65,582 thousand and were higher (increased by 44%) than those achieved in 2023Q1 (PLN 45,533 thousand).

The Group recorded a positive balance in financial activities in 2024Q1 in the amount of PLN 4,094 thousand, which was lower compared to the balance achieved in 2023Q1 (PLN 4,556 thousand). This result is mainly the effect of lower interest income on cash and cash equivalents (including non-current) by PLN 1,899 thousand, lower costs of discounting provisions (decrease by PLN 1.943 thousand) and higher interest expense on liabilities measured at amortised cost (increase by PLN 489 thousand). As a result of the above, profit before income tax in 2024Q1 amounted to PLN 69,683 thousand and was higher (increased by 39%) than the one achieved in 2023Q1 (PLN 50,136 thousand).

As a result of activities in 2024Q1 Group achieved net profit at the level of PLN 59,177 thousand, which is at a higher level (increased by 45.8%), when compared with the net profit in 2023Q1 (PLN 40,587 thousand).

It should be mentioned that the data for the comparative period were restated in connection with the changes described in note 5 to the condensed consolidated interim financial statements.

Condensed separate and consolidated interim financial statements of Stalexport Autostrady for 2024Q1 can be found here.