Throughout 2022, Grupa Azoty generated PLN 24.7bn in consolidated sales revenue and PLN 2.55bn in EBITDA. The net profit amounted to nearly PLN 584 million.
A year earlier, in 2021, Grupa Azoty posted PLN 15.9bn in revenue, PLN 1.95bn in EBITDA and PLN 633.7m in net profit.
Grupa Azoty assessed in the report that the supply and demand situation in the European fertilizer and chemical industry throughout 2022 was determined by the market consequences of Russia’s armed aggression against Ukraine and the high prices of raw materials and energy media, which resulted in production restrictions by European producers.
“As a consequence of the macroeconomic situation, an increase in the level of product prices was recorded in all business segments, accompanied by a decrease in sales volumes and a disruption of the current demand-supply balance,” it said.
“In terms of profitability, the fourth quarter was a big challenge, in which each of the three key segments, and to the greatest extent the Agro Segment, had a negative EBITDA result. resulted in a reduction in the volumes sold” – added, quoted in the press release, Vice-President Marek Wadowski.
As stated, the Grupa Azoty Group’s consolidated operating profit and net profit were negatively impacted by impairment losses on non-financial non-current assets and inventories of finished products, semi-finished products and raw materials.
The impact of write-downs on inventories created in 2022 resulted in a decrease in consolidated EBIT and EBITDA by PLN 428 million. The impact of impairment losses on non-financial non-current assets resulted in a decrease in the Grupa Azoty Group’s consolidated EBIT for 2022 by PLN 924m. Pursuant to the Accounting Policy in force at the Grupa Azoty Group, these write-downs are one-off non-monetary events.
“Last year’s results were determined primarily by the situation on the European raw materials market. The disruption of the demand-supply balance, which we have observed in all segments since the fourth quarter, results in adjusting the production volume of the Capital Group companies to the current market situation (…). We continue the implementation of projects in as part of Grupa Azoty’s strategy until 2030,” said Tomasz Hinc, CEO of Grupa Azoty, quoted in the press release.
He added that the implementation of the Group’s key project, i.e. Zielony Azoty, remains a priority, which will directly translate into increased competitiveness. The investment, Polimery Police, which is to be launched this year, is to strengthen the business.
In 2022, the Fertilizers Segment recorded revenues of PLN 15.1 billion and an EBITDA margin of 9%. In the Agro Segment, the main determinants of the results were large fluctuations in the prices of raw materials, including natural gas, supply and demand imbalance, and decreases in the prices of agricultural produce. The average prices of raw materials and products in the segment were significantly higher compared to the previous year, while the sales volume was significantly lower.
The EBITDA margin of the Agro Segment, generated in the fourth quarter of 2022, decreased significantly compared to the fourth quarter of 2021 and amounted to minus 5.3%.
In 2022, the Chemicals segment recorded revenues of PLN 6.4 billion (an increase of 38.5% yoy) and an EBITDA margin of 12.1%. (decrease by 2.5 pp yoy).
The EBITDA margin of the Chemicals Segment generated in the fourth quarter of 2022 amounted to minus 3.9 percent.
In 2022, the Plastics Segment recorded revenues of PLN 2.08 billion (an increase of 13.9% yoy) and an EBITDA margin of minus 2.2%. (decrease by 13.1 pp y/y).
The EBITDA margin of the Plastics Segment generated in the fourth quarter of 2022 amounted to minus 43.4%. (PAP Business)
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