Grupa Azoty (ATT) Q1 2025 earnings summary

Executive summary

• Revenue increased 12.4% year-over-year to PLN 3,822 million in Q1 2025, but the Group posted a net loss of PLN 325 million and negative EBITDA of PLN 8 million, reflecting continued market headwinds and high raw material costs.

• The Agro segment generated positive EBITDA and led growth, while Plastics, Chemicals, and Energy segments reported negative margins, with competitive pressure from Eastern imports and surging gas and electricity prices impacting results.

• The Group is implementing the AZOTY BUSINESS transformation program, focusing on cost optimization, restructuring, and tighter capex control to restore financial stability.

• Regulatory engagement led to positive impacts, including EU Parliament approval of tariffs on fertilizers from Russia and Belarus, effective July 2025, supporting the European fertilizer industry.

• Management Board changes and stabilization agreements with key partners and financing institutions were implemented and extended.

Financial highlights

• Group revenue rose 12.4% year-over-year to PLN 3,822 million in Q1 2025; net loss narrowed to PLN 324.97 million from PLN 332.83 million year-over-year.

• EBITDA for Q1 2025 was minus PLN 8 million, an improvement from PLN -50 million year-over-year; EBITDA margin improved from -1.5% to -0.2%.

• Net debt as of March 31, 2025, was PLN 4,209 million; cash at quarter-end was PLN 324 million.

• Total assets reached PLN 25,183 million, with equity at PLN 4,948 million and liabilities at PLN 20,235 million.

• Normalized fixed costs fell by PLN 58 million year-over-year, while variable costs increased 16.5%.

Outlook and guidance

• Management aims for positive EBITDA in 2025, with ongoing cost-cutting, restructuring, and corrective actions.

• EU tariffs on fertilizers from Russia and Belarus, effective July 2025, are expected to support domestic producers.

• Moderate chances for product price improvement and normalization of natural gas prices are expected with the new season starting June 1.

• The Group expects continued volatility due to global trade tensions, high energy costs, and geopolitical risks.

• Interest rates in Poland and Europe are expected to decline, potentially reducing financing costs.