Throughout the Group, remedial actions aimed at ensuring financial stability and improving operating performance continued during the first quarter. These efforts are reflected in the published preliminary results. A key pillar of these remedial actions is the AZOTY BUSINESS Program, which involves a comprehensive transformation of the business model. The program implements effective solutions in corporate areas such as procurement, intensified sales efforts, cash management, and segmental management.

‘A positive EBITDA in the Agro Segment is an encouraging sign, particularly given the high gas prices in Q1 and the challenges posed by fertilizer imports from Russia and Belarus. Regardless of the market protection efforts underway and the anticipated introduction of EU-level tariffs on fertilizers from those countries, we intensified our sales activities — and that is reflected in the results. Imports, especially from China, remain a major challenge for us in the Plastics and Chemicals Segments,’ said Andrzej Skolmowski, Acting President of the Management Board.

In Q1 2025, the Group’s raw material situation was shaped by a significant increase in natural gas prices — up 75% compared to the same period last year. Electricity prices also rose. Conversely, unit coal consumption costs dropped significantly year-on-year. Imports from eastern markets had a notably negative impact on the Group’s performance.

Key financial performance drivers by segment in Q1 2025 compared to Q1 2024:

Agro Segment

In Q1 2025, compared to the same period of the previous year, the Agro Segment saw a significant increase in production and sales volumes, a slight increase in product prices, and a sharp rise in natural gas prices.

A major factor impacting performance — for Grupa Azoty and other EU producers — remains the continued surge in fertilizer imports from Russia and Belarus. Grupa Azoty has long been taking protective measures, especially to defend the Polish market. Intensified sales efforts and a broader product portfolio have delivered measurable benefits, including an 18% year-on-year increase in total fertilizer sales volume and a 22% increase in nitrogen fertilizer sales.

Gas prices initially trended upward in the quarter, followed by a marked decline mid-quarter. The average TTF spot price in Q1 was EUR 46.9/MWh — 75% higher than in Q1 2024. Sulfur prices also rose, while prices of other raw materials remained largely unchanged year-on-year. Potash prices declined, and unit coal consumption costs dropped significantly. The Group’s nitrogen fertilizer prices increased slightly, while compound fertilizer prices declined slightly.

The Agro Segment’s EBITDA margin in Q1 2025 stood at 3.6%, up 2.4 percentage points compared to the same period last year.

Chemicals Segment

In Q1 2025, the Chemicals Segment experienced a year-on-year decline in sales volumes, a rise in product prices, and a drop in most raw material prices — offset, however, by rising gas costs.

The main drag on performance continues to be the lack of a meaningful recovery in global economic conditions and weak demand for chemical products. The sulfur market was characterized by reduced refinery output, rising global demand, and concerns about potential tariffs. The OXO alcohols and plasticizers markets saw good product availability but weak demand. The titanium dioxide market also remained subdued, though demand is expected to pick up in the coming months.

Product prices in most categories increased year-on-year, with the highest gains seen in technical-grade urea and sulfur. Plasticizer prices recorded the steepest drop. Raw material prices were generally lower year-on-year, but higher gas prices negatively affected the segment’s performance.

Due to the ongoing market imbalance, Grupa Azoty Puławy did not resume melamine production in Q1 2025.

The Chemicals Segment’s EBITDA margin was minus 10.2% in Q1 2025 — an improvement of 4.7 percentage points compared to the previous year, despite remaining negative.

Plastics Segment

In Q1 2025, the Plastics Segment posted higher year-on-year sales volumes and lower prices for both products (polyamide and polypropylene) and raw materials (phenol and propane).

In the European market, base demand in most industries using polyamide and polypropylene remained stable but low. Only the packaging industry recorded strong demand — especially relevant for polypropylene. The automotive sector, the key application area for polyamide in Europe, continued to struggle amid uncertainty over U.S. trade tariffs and potential international retaliation.

Due to market conditions, Grupa Azoty Puławy did not resume caprolactam production in Q1 2025.

The Plastics Segment posted an EBITDA margin of minus 23.4% in Q1 2025 — down 10 percentage points from the same period last year. The main drag on performance came from Grupa Azoty Polyolefins, largely due to underutilized production capacity related to commissioning and tuning of the installation, and seasonal market weakness in the polypropylene segment.

All figures are preliminary and subject to change. Final results will be published in the consolidated Q1 2025 report scheduled for release on May 28, 2025.