Grupa Azoty (ATT) Q1 2025 earnings summary

Executive summary

• Revenue increased by 12.4% year-over-year to PLN 3,822 million in Q1 2025, but the Group posted a net loss of PLN 325 million, with negative EBITDA of PLN 8 million and a margin of -0.2%.

• The Agro segment was the only one with positive EBITDA; all other key segments reported negative profitability.

• Results were heavily impacted by higher gas and electricity prices, and increased imports of fertilizers from Russia and Belarus.

• The Group is implementing a transformation program focused on cost efficiency, business model resilience, and development, with stabilization agreements in place with key partners and financing institutions.

• Ongoing negotiations with financial institutions have secured temporary waivers and stabilization agreements to maintain liquidity.

Financial highlights

• Q1 2025 consolidated revenues increased 12.4% year-over-year to PLN 3,822 million.

• EBITDA for Q1 2025 was minus PLN 8 million, an improvement of PLN 42 million year-over-year; adjusted for Polyolefins, EBITDA would be PLN 186 million.

• Net loss: PLN 324.97 million, compared to a net loss of PLN 332.83 million in Q1 2024.

• Net debt increased slightly by PLN 180 million; cash at quarter-end was PLN 324 million.

• Asset value at Q1 2025 stood at PLN 24.18 billion, up PLN 91 million from March 2024.

Outlook and guidance

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

• The Group expects continued market challenges due to global macroeconomic headwinds, high energy costs, and ongoing trade tensions.

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

• The AZOTY BUSINESS program is expected to drive cost optimization, business restructuring, and improved financial stability.

• The Group anticipates further volatility in raw material prices and exchange rates, with potential impacts from new EU tariffs on Russian and Belarusian fertilizers starting July 2025.