Comments on results of Stalexport Autostrady Group in the first quarter of 2013

In the first quarter of 2013 Group’s sales revenue increased by 9.6% compared to the first quarter of 2012, mainly due to the increase (by 14.3%) of revenue from management and operation of motorway, including the revenue on toll collection (increase by 14.5%) on the toll section of A4 Katowice-Kraków motorway (see detail report here). On the other hand, in the first quarter of 2013 Group’s revenue from management of the real property and lease of office spaces decreased (by 64.8%) in comparison to the first quarter of 2012. One must remember that due to the sale of shares of Biuro Centrum in 2012, financial statements of the Group exclude (as opposed to the first quarter of 2012) part of the revenues and costs generated by this entity.

In addition, in the first quarter of 2013 Group’s cost of sales decreased by 31.8% in comparison to the respective period in 2012, mainly due to lower (decreased by 66.3%) cost of resurfacing provisions (provision revaluation due to expected expenses and timetable of construction works). Taking into account the above described increase in revenues as well as the level of costs, the cumulative gross profit on sales in the first quarter of 2013 amounted to PLN 24.618 thousand and increased by 106,4% compared to the first quarter of the previous year.

Moreover, in comparison to the first quarter of 2012, Group’s administrative expenses in the first quarter of 2013 decrease (by 14.7%), mainly due to significant decrease (by 19.5%) in the cost of salaries and employee benefits as a result of reorganization activities initiated in the end of the second quarter of 2012. The abovementioned savings compensated the increase (by 3.0%) in Group’s net finance expenses in the first quarter of 2013 in comparison to the respective period in 2012. The increase of net finance expenses was mainly due to the loss on investments in investment funds which resulted from further devaluation of Idea Premium SFIO fund, as well as additional impairment of shares of Ideon S.A.

As a result of activities in the first quarter of 2013 the Group achieved much higher net profit of PLN 6.711 thousand compared to net loss of PLN 4.919 thousand in the respective period of the previous year.

Condensed interim separate and consolidated financial statements of Stalexport Autostrady for the first quarter of 2013 can be found here.