Grupa Azoty hails ‘transformational 2014’ as net profits rise year to year
By Business Wire News
By Business Wire News
Grupa Azoty SA delivered strong annual results, ending 2014 with sales revenues at the level of PLN 9.9bn (PLN 9.8bn in 2013) with net profits of PLN 265m (from adjusted net profits of PLN 245m in 2013). In comparison to the previous year, the EBITDA results have also gone up by nearly PLN 100m, to PLN 822m.
[PLN 1 = $0.25, £0.17]
Commenting on the results announcement, Paweł Jarczewski, Chief Executive Officer, said:
“2014 was a transformational year for us, following the complicated, yet successful consolidation of the chemical industry in Poland and operationalization of our 2020 Strategy, including plans for international expansion to new markets in the region and overseas.
With strong financial results for 2014, we continue to believe that we are on track to expand our business beyond Europe taking our Polish success story further, delivering significant value for shareholders.
We look forward to successful 2015 following closely a number of opportunities for us to grow and expand further, but also key geopolitical events: developments in Eastern Ukraine, free trade negotiations between the European Union and the United States, and the Sustainable Development Goals negotiations at the global level.”
The analysis of the results and margins of individual businesses shows that Fertilizers continue to represent the largest share in profitability across the Group. The level of EBITDA was maintained at 11% year-on-year mainly as a result of cost savings realized on purchases of key raw materials (natural gas, natural phosphates, potassium salt) and energy. This reduced the effect of falling prices across virtually all product categories (mainly urea, NPK fertilizers and ammonium sulphate), also covering the necessary costs linked to the increased export sales.
While the sales, cost of sales and management costs of Plastics were maintained at comparable levels to the previous year, the negative margins were up from -8% to -2%. Margins have benefited from the maximized production and growth in the volume of sales due to the lower cost of energy resources.
Despite the higher sales, Chemicals (including the sale of Siarkopol) showed a decline in EBITDA margin to PLN 45 million, compared to PLN 71 million in 2013. The main reason behind this decline was a revaluation of assets of the Kedzierzyn-Kozle subsidiary (PLN 40 million) in the Q4 of 2014. Considering the post tax result, the EBITDA margin increased due to lower costs of energy resources and better pricing in the granular sulphur market (for export).
Full financial report is available on the Company’s website here.
NOTES TO EDITORS
Listed on the Warsaw Stock Exchange (ticker: WSE:ATT), Grupa Azoty SA is Poland’s largest chemical company and the European Union’s second-largest EU producer of nitrogen and multi-component fertilizers, while such products of Grupa Azoty as melamine, caprolactam, polyamide, OXO alcohols, and titanium dioxide also enjoy a strong position in the chemical sector and find application in different other industries.
Grupa Azoty was founded as a result of the 2014 consolidation of strategic Polish chemical companies. The group consists of such subsidiaries as inter alia: Grupa Azoty S.A. (leading company), Grupa Azoty Zakłady Azotowe „Puławy” S.A, Grupa Azoty Zakłady Chemiczne „Police” S.A., Grupa Azoty Zakłady Azotowe Kędzierzyn S.A.
By the end of the 2014 the Polish government declared Grupa Azoty a ‘strategic asset’, and the Company announced it was seeking to diversify its portfolio through regional and global acquisitions.