Comments on results of Stalexport Autostrady Group in 2017Q1

In 2017Q1 Group’s revenue (PLN 70,360 thousand) increased by 8.2% compared to 2016Q1 (PLN 65,036 thousand), mainly due to increase of revenue from management and operation of motorway (increase by 8.4%), including toll revenue (increase by 8.5%) 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 2017Q1 amounted to PLN 821 thousand and are on a lower level compared to 2016Q1 (PLN 860 thousand).

In 2017Q1 Group’s cost of sales (PLN 10,522 thousand) increased by 286.3% (i.e. by PLN 7,798 thousand) compared to previous year (PLN 2,724 thousand). A decisive impact on such situation was due to increase of accrued cost of provision for motorway resurfacing by the amount of PLN 6,904 thousand, which comprised of a negative variance between the effects of estimates changes in relation to the provision recorded during the periods subject to comparison (PLN 8,412 thousand) and lower current accrued cost of the provision recorded in 2017Q1 (decrease of PLN 1,508 thousand).

Taking into account the above described increase in revenue and costs, the cumulative gross profit in 2017Q1 amounted to PLN 59,838 thousand and was slightly lower (decrease by 4%) compared to PLN 62,312 thousand in 2016Q1.

In 2017Q1 Group’s other income was at similar level (PLN 868 thousand), as in 2016Q1 (PLN 864 thousand). Whereas in 2017Q1, the Group recorded administrative expenses (PLN 7,607 thousand) where at higher level (increase by 2.5%) than in 2016Q1 (PLN 7,420 thousand), mainly due to higher employee benefit expenses. Other expenses in 2017Q1 in the amount of PLN 52 thousand were higher than in 2016Q1, when they amounted to PLN 33 thousand, but due to their low share in the cost structure such did not have significant impact on Results from operating activities in 2017Q1 (PLN 53,047 thousand).

It should also be noted, that the negative balance in financial activities recorded in 2017Q1 (PLN 4,787 thousand) was lower (by 8.5%) than in 2016Q1 (PLN 5,233 thousand). This was mainly due to reduction in financial expenses as a result of successive repayment of loan liabilities.

As a result of activities in 2017Q1 Group achieved lower (by 5.7%) net profit of PLN 38,986 thousand compared to net profit of PLN 41,345 thousand in 2016Q1.

Separate and consolidated condensed financial statements of Stalexport Autostrady for 2017Q1 can be found here.