Grupa Azoty (ATT) Q1 2025 earnings summary

Executive summary

• Q1 revenue rose 12.4% YoY to PLN 3,821.7m; EBITDA was -PLN 8.1m and net loss was PLN 325.0m.

• Turnaround and restructuring initiatives continued, but significant uncertainty remains over ongoing operations, lender support and resolution of the Polimery Police project.

Financial highlights

• Revenue reached PLN 3,821.7m versus PLN 3,398.8m YoY; gross profit fell to PLN 219.8m from PLN 265.8m.

• EBITDA loss narrowed to PLN 8.1m from PLN 50m; EBITDA margin improved to -0.2% from -1.5%.

• Operating loss widened to PLN 291.8m from PLN 259.6m; net loss narrowed to PLN 325.0m from PLN 332.8m, with basic EPS of -PLN 2.91 versus -PLN 2.97.

• Variable costs rose 16.5% to PLN 3.112bn, fixed costs increased 3.0% to PLN 1.008bn and total costs rose 12.8% to PLN 4.120bn.

• Operating cash flow was PLN 1,608.7m, investing outflow PLN 148.8m and financing outflow PLN 1,499.9m; cash ended Q1 at PLN 649.8m.

Outlook and guidance

• AZOTY BUSINESS entered implementation on 1 March, with 500 initiatives targeting cost efficiency, commercial performance, subsidiary consolidation and tighter CAPEX control.

• CAPEX Control Tower recommended a substantial reduction in the investment portfolio; transformation initiatives are being implemented.

• Stepped EU tariffs on selected Russian and Belarusian fertilizers are scheduled to begin 1 July 2025, with rates rising by product and period through July 2028.

• High European gas costs, soft demand in several chemical markets and uncertainty over US trade policy are expected to affect costs and sales.