In Q4 2024, Grupa Azoty achieved consolidated sales revenue of PLN 3,215 million and an EBITDA result of minus PLN 31 million, with an EBITDA margin of minus 1.0%.

Since the end of March 2024, recovery measures have been implemented across the Group’s Capital Group to ensure financial stability and improve operational performance, which is reflected in the published preliminary results for 2024. In November last year, Grupa Azoty launched the AZOTY BUSINESS Program, under which effective solutions have been introduced in areas such as procurement, sales intensification, cash management, and segmental management.

The 2024 results were largely influenced by external conditions, including the ongoing unfavorable global macroeconomic environment, increasing geopolitical tensions, and resulting supply chain disruptions — notably an unprecedented surge in fertilizer imports from Russia and Belarus — as well as a lack of clear recovery in the Group’s key markets.

Fertilizer imports to the Polish market from Russia and Belarus totaled approximately 1.5 million tonnes in 2024, marking a nearly 2.5-fold increase compared to 2023 and an almost threefold rise compared to 2022. At the same time, during Poland’s Presidency of the Council of the European Union, the European Commission proposed new regulations to raise tariffs on fertilizers and agri-food products originating from Russia and Belarus, with the first measures expected to be introduced in the second half of this year.

‘Since the end of March 2024, our focus has been primarily on stabilizing liquidity and maintaining operations despite nearly PLN 10 billion in debt and a record loss in 2023. Equally important has been boosting sales volumes and improving relationships with our business partners. We also launched the AZOTY BUSINESS Program, a comprehensive transformation of our business model. The first positive effects of the Program are already visible in improved financial results, despite a very challenging environment. Through initiatives under the Program, we have primarily optimized costs and intensified sales activities. High gas prices and market conditions — particularly fertilizer imports from Russia and Belarus — remain our biggest challenges, and we are awaiting the first announced tariff regulations at the EU level,’ said Andrzej Skolmowski, Vice President of the Management Board of Grupa Azoty S.A.

While relatively stable compared to previous periods, natural gas prices fluctuated significantly month-to-month and quarter-to-quarter in 2024. Despite an average price of EUR 34/MWh (TTF DA) for the full year, prices rose sharply in Q4, reaching EUR 43/MWh, with a peak of EUR 45/MWh in December 2024. Compared to December 2023, gas prices were 27% higher.

Demand across the Group’s business segments increased, supporting higher sales volumes, but was insufficient to restore profitability due to continued pressure on product prices.

Q4 2024 Results

Financial performance in Q4 2024 was significantly impacted by the reversal of impairment losses on non-financial fixed assets at subsidiaries Grupa Azoty Puławy and Grupa Azoty Police. Information about the reversal of impairment losses was disclosed in Current Report No. 12/2025 dated April 14, 2025, and Current Report No. 14/2025 dated April 17, 2025.

The total impact of the reversal of previously recognized impairment losses increased Grupa Azoty’s consolidated EBIT for Q4 2024 by approximately PLN 353.7 million. According to Grupa Azoty’s Accounting Policy, impairment reversals are non-cash, one-off events and do not affect the Group’s consolidated EBITDA result.

Key Factors Affecting Financial Results in Q4 2024 by Segment:

Agro Segment

In the Agro Segment, Q4 2024 results were mainly driven by significantly higher volumes of mineral fertilizers sold, a result of measures aimed at regaining market share. Other key factors included higher gas prices compared to both Q3 2024 and Q4 2023, and the unprecedented level of fertilizer imports from the East.

Natural gas prices during the period were relatively stable without major fluctuations, with TTF spot prices averaging EUR 42.9/MWh, 6% higher than in Q4 2023.

Demand for mineral fertilizers was moderately higher, but strong pressure from imported products, particularly from Russia and Belarus, was evident — especially on the Polish market. Russian fertilizers were widely available and price-competitive due to lower production costs. In Q4 2024, fertilizer imports from Russia and Belarus to Poland totaled 370 thousand tonnes (up 44% year-on-year), with about 90% originating from Russia.

These conditions necessitated price adjustments across European markets. Compared to Q4 2023, Grupa Azoty’s fertilizer sales volumes rose, driven by intensified sales efforts and an expanded product portfolio. As a result, the Group’s fertilizer sales volume was 15% higher year-on-year in Q4 2024.

The Agro Segment’s EBITDA margin in Q4 2024 stood at minus 1.5%, an improvement of 2.9 percentage points compared to Q3 2024. Segment results were positively impacted by the reversal of impairment losses.

Chemicals Segment

In Q4 2024, the Chemicals Segment saw signs of increased demand for some products, although overall demand remained weak. Global economic conditions continued to hinder recovery in key target sectors. Weak economic recovery and competition from low-cost imports posed ongoing challenges for the European market. Grupa Azoty’s sales volumes for chemical products were generally higher compared to Q4 2023, and OXO alcohol sales volumes doubled year-on-year. However, demand for sulfur products was significantly lower. Average selling prices across the segment were down 8% year-on-year, with the exception of titanium dioxide, where prices rose by 8%. Due to market conditions, melamine production was marginal in Q4 2024. 

The Chemicals Segment’s EBITDA margin in Q4 2024 was minus 6.3%. Segment results were also positively affected by the reversal of impairment losses.

Plastics Segment

In Q4 2024, the Plastics Segment recorded lower prices for both raw materials (phenol) and products compared to the previous year. The sector continued to struggle with weak demand across all key industries consuming PA6. Low construction activity and subdued automotive production further constrained demand for PA6-related products. Challenging macroeconomic conditions also negatively affected market sentiment.

Due to the difficult market environment, Grupa Azoty Puławy did not resume caprolactam production in 2024.

The Plastics Segment’s EBITDA margin in Q4 2024 stood at minus 33.1%. Grupa Azoty Polyolefins had a major negative impact on segment results, primarily due to underutilized production capacity linked to plant commissioning, process adjustments, and seasonal weakness in the polypropylene market.

The reported figures are preliminary and subject to change. Final results will be presented in the consolidated report for the 12 months of 2024, scheduled for publication on April 29, 2025.