Comments on results of Stalexport Autostrady Group in 2015

In 2015 Group’s revenue (PLN 262,508 thousand) increased by 18.0% compared to 2014 (PLN 222,543 thousand), mainly due to increase of revenue from management and operation of motorway (increase by 18.3%), including toll revenue (increase by 18.1%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). Whereas Group’s revenue from the activity not related to the motorway in 2015 amounted to PLN 3,364 thousand and was lower by 2.0% then in 2014 (PLN 3,432 thousand).

In 2015 Group’s cost of sales (PLN 65,584 thousand) decreased by 26.8% (i.e. by PLN 23,959 thousand) compared to previous year (PLN 89,543 thousand). A decisive impact on such situation was due to level of costs of created provision for resurfacing works included in cost of sales (external services) which was lower by PLN 25,365 thousand compared to the same period of last year.

Taking into account above described increase in revenue as well as decrease in costs, the cumulative gross profit in 2015 amounted to PLN 196,924 thousand and increased by 48.1% compared to PLN 133,000 thousand in 2014.

In comparison to 2014 (PLN 4,603 thousand), in 2015 Group showed other income (PLN 7,321 thousand) higher by 59.0%, mostly due to higher lease revenues for use of the property within the motorway roadstrip A4 Katowice-Krakow caused by reimbursements of land tax costs for current period and previous years. Whereas in the same period, the Group recorded administrative expenses (PLN 34,182 thousand) at higher level (increase by 14.9%) than last year (PLN 29,746 thousand). This was mainly due to the increase of land tax costs in connection with the payment of taxes for current period and previous years. Other expenses in 2015 in the amount of PLN 351 thousand were lower than in 2014 when they amounted to PLN 597 thousand, but due to their share in the cost structure they did not have significant impact on results from operating activities in 2015 (PLN 169,712 thousand).

It should also be noted that the negative balance in financial activities recorded in 2015 (PLN 21,696 thousand) was lower (by 19.2%) than in 2014 (PLN 26,859 thousand). This was mainly due to the gradual repayment of liabilities from loans while increasing long-term investments and cash, and reduction in interest rates which in addition to lowering interest on loans, bank accounts and deposits, also reduced amount of the discount on provisions.

As a result of activities in 2015 Group achieved higher (by 82.6%) net profit of PLN 119,410 thousand compared to net profit of PLN 65.403 thousand in 2014.

Separate and consolidated financial statements of Stalexport Autostrady for 2015 can be found here.