Comments on results of Stalexport Autostrady Group in 2016H1

In 2016H1 Group’s revenue (PLN 137,643 thousand) increased by 19.9% compared to 2015H1 (PLN 119,237 thousand), mainly due to increase of revenue from management and operation of motorway (increase by 15.6%), including toll revenue (increase by 15.7%) 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 2016H1 amounted to PLN 1,706 thousand and was higher by 1.7% compared to 2015H1 (PLN 1.678 thousand).

In 2016H1 Group’s cost of sales (PLN 23,683 thousand) decreased by 41.8% (i.e. by PLN 17,022 thousand) compared to 2015H1 (PLN 40,705 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 18,238 thousand compared to the same period last year.

Taking into account above the described increase in revenue as well as the decrease of costs, the cumulative gross profit in 2016H1 amounted to PLN 113,960 thousand and reached higher level (increased by 45.1%) than PLN 78,532 thousand in 2015H1.

In comparison to 2015H1 (PLN 3,939 thousand), Group’s other income in 2016H1 (PLN 1,747 thousand) decreased by 55.6%, mainly due to lease revenues for use of the property within the motorway roadstrip A4 Katowice-Krakow, where in contrary to current year, last year demonstrated additional revenues from the land tax costs for previous years re-invoiced to lessees. In the same period the Group recorded administrative expenses (PLN 15,079 thousand) at lower level (decrease by 4.3%) than in 2015H1 (PLN 15,756 thousand). Other expenses in 2016H1 in the amount of PLN 66 thousand were also lower than in 2015H1 when they amounted to PLN 82 thousand, nonetheless due to their share in the cost structure such did not have significant impact on Results from operating activities in 2016H1 (PLN 100,562 thousand).

It should also be noted that the negative balance in financial activities recorded in 2016H1 (PLN 10,305 thousand) was lower (by 9.1%) than in 2015H1 (PLN 11,307 thousand). Such reduction resulted from decrease in interest rates (influencing the balance of interest on deposits and loan and unwinding of discount on provisions) and repayment of the loan.

As a result of activities in 2016H1 Group achieved higher (by 62.6%) net profit of PLN 73,243 thousand compared to net profit of PLN 45,048 thousand in 2015H1.

Separate and consolidated condensed financial statements of Stalexport Autostrady for 2016H1 can be found here.