Since the end of March 2024, Grupa Azoty’s Management Board has been implementing a recovery plan based on six pillars:

Pillar I – A consistent improvement in financial performance, achieved through strengthening operations across all segments, cost optimization, and effective use of existing assets, including those in maritime logistics at Grupa Azoty Police and Grupa Azoty Fosfory.           
Pillar II – Constructive dialogue with financing institutions.       
Pillar III – Projects related to securing external funding.          
Pillar IV – Discussions concerning the Police Polymers project, which has significantly strained Grupa Azoty’s investment capacity.          
Pillar V – Regulatory engagement on legislative developments affecting the Group’s business.
Pillar VI – The “AZOTY BUSINESS” business model transformation process, aimed at creating an integrated, cost-effective capital group with a strong position in the European market.

‘The significant year-on-year improvement in financial results is the outcome of these recovery efforts. The six pillars underpin both operational strengthening and financial recovery—especially through the AZOTY BUSINESS program—while the Group simultaneously works to implement effective debt reduction measures. A key concern in this area remains the Police Polymers project. Regulatory matters are also of high importance, particularly the introduction of tariffs on fertilizers from Russia and Belarus. Throughout the recovery process, the Group has maintained ongoing dialogue with financial institutions, aiming to reach an agreement that ensures the Group’s long-term operational stability,’ commented Andrzej Skolmowski, Vice President of the Management Board of Grupa Azoty S.A.

The Group’s performance in 2024 was heavily influenced by external factors, including ongoing global macroeconomic challenges, rising geopolitical tensions, and resulting disruptions in supply chains—most notably the unprecedented volume of fertilizer imports from Russia and Belarus—as well as the continued stagnation in key markets relevant to the Group.

Fertilizer imports to the Polish market from Russia and Belarus reached approximately 1.5 million tonnes in 2024, nearly 2.5 times more than in 2023 and almost 3 times more than in 2022. During Poland’s Presidency of the Council of the European Union, the European Commission proposed new regulations to increase tariffs on fertilizers and agri-food products from Russia and Belarus, with the first such measures expected to take effect in the second half of 2025.

Although relatively stable compared to previous periods, natural gas prices fluctuated from month to month and quarter to quarter in 2024. Despite an average price of EUR 34/MWh (TTF DA) for the year, prices rose sharply in Q4 to EUR 43/MWh, peaking in December at EUR 45/MWh—27% higher than in December 2023.

As a result of the recovery actions undertaken, the Group recorded a year-on-year increase in sales volumes across all segments, totaling 690,000 tonnes.

However, demand in the Group’s operating segments was insufficient to restore profitability to positive levels, due to downward pressure on product prices.

Key drivers of financial results in 2024 in key segments:

Agro Segment 
In 2024, the Agro segment saw significantly higher volumes of mineral fertilizer sales, driven by efforts to regain market share, fluctuating gas prices, and extremely high levels of fertilizer imports from eastern markets.

Demand for mineral fertilizers rose, but so did competitive pressure from imports to the EU, particularly from Russia and Belarus. This was especially evident in the Polish market, where Russian fertilizers—produced at lower costs—were widely available and competitively priced. The surge in imports forced a downward adjustment of European prices. Despite the difficult market environment, Grupa Azoty increased fertilizer sales volumes by 19% year-on-year, due in part to intensified sales efforts and a broader product portfolio.

The Agro segment’s EBITDA margin in 2024 was minus 2.3%. While still negative, it marked an improvement of 6.2 percentage points over 2023. Operating results also benefited from the reversal of asset impairment charges.

Chemicals Segment    
In 2024, the Chemicals segment showed modest signs of demand recovery for some products. However, the global economic environment remained unfavorable for a broader rebound in key sectors. Continued economic stagnation and competitively priced imports challenged the European market. Grupa Azoty’s sales volume remained comparable to the previous year. The segment saw the most significant increase in OXO alcohols (+81% y/y), while melamine (-54% y/y) and sulfur (-40% y/y) saw sharp declines. Average product prices were down 18% y/y, with some products (Pulnox, NOXy, Likam) falling by more than 30%.

The Chemicals segment posted an EBITDA margin of minus 9.4% in 2024—an improvement of 8.7 percentage points year-on-year.

Plastics Segment         
In 2024, the Plastics segment experienced price declines for both raw materials (phenol) and polyamide products compared to the previous year. Polypropylene—Grupa Azoty Polyolefins’ key product—was the exception, showing a price increase.

Demand was weak across all major consumer sectors for PA6. Low construction activity and subdued automotive production constrained demand for many PA6-linked products. Unfavorable macroeconomic conditions added further strain.

Due to poor market conditions, caprolactam production at Grupa Azoty Puławy was not resumed in 2024.

The Plastics segment’s EBITDA margin was minus 16.4%, an improvement of 29.8 percentage points y/y. The main negative factor affecting the segment was Grupa Azoty Polyolefins, due in large part to underutilized production capacity caused by start-up and commissioning issues, as well as a seasonal downturn in polypropylene market conditions in the second half of the year.

Q4 Results

In Q4 2024, Grupa Azoty recorded consolidated sales revenue of PLN 3.215 billion and an EBITDA result of minus PLN 31 million, with an EBITDA margin of minus 1.0%.

Q4 performance was significantly impacted by the reversal of impairment charges related to non-financial fixed assets by subsidiaries Grupa Azoty Puławy and Grupa Azoty Police. These reversals increased the Group’s consolidated EBIT for Q4 2024 by approximately PLN 353.7 million.

In accordance with Grupa Azoty’s accounting policy, impairment reversals are treated as one-off, non-cash events and do not affect the Group’s consolidated EBITDA.