Comments on results of Stalexport Autostrady Group in 2014Q1

In 2014Q1 Group’s sales revenue increased by 13,1% compared to 2013Q1, mainly due to the increase of revenue from management and operation of motorway, including the revenue on toll collection (increase by 13.3%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). While Group’s revenue from the activity not related to the motorway in 2014Q1 amounted to PLN 872 thousand and were higher by 4.9% than in the corresponding quarter of the previous year (PLN 831 thousand).

In addition, in 2014Q1 Group’s cost of sales slightly increased(by 6.3%) in comparison to 2013Q1, mainly due to higher (increased by 49.1%) cost of resurfacing provisions.

Taking into account the above described increase in revenues as well as the level of costs, the cumulative gross profit on sales in 2014Q1 amounted to PLN 29,136 thousand and increased (by 18.4%) compared to PLN 24,618 thousand in the corresponding quarter of previous year.

Moreover, in comparison to 2013Q1 (PLN 854 thousand), Group’s other income in 2014Q1 (PLN 1,707 thousand) has increased (by 99.9%), mainly due to reversal of provisions and write-offs. Other operating expenses in 2014Q1 at the amount of PLN 51 thousand were lower (by 60.1%) than in 2013Q1 when amounted to PLN 128 thousand.

It should also be noted that the negative balance in financial activities recorded in 2014Q1 was lower (by 33.3%) than in year 2013Q1. This was mainly due to reduction in the Group's net debt balance and reduced short-term interest rates which resulted in lower loan interest as well as lower value of the discount on provisions.

As a result of activities in 2014Q1 the Group achieved much higher net profit of PLN 14,484 thousand compared to net profit of PLN 6,711 thousand in the corresponding quarter of the previous year.

The condensed interim separate and consolidated financial statements of Stalexport Autostrady for 2014Q1 can be accessed here.