Polish chemicals and fertilizer group Grupa Azoty SA, Tarnów, reported full-year 2020 net profit of Pln355 million (approximately $93.2 million at current exchange rates), 13 percent down on the year and in line with its preliminary estimate at the start of April (GM April 2, p. 27). Consolidated revenues were down 7 percent, to Pln10.5 billion, and also in line with the company’s preliminary estimate. Full-year EBITDA came in at Pln1.3 billion, also down 7 percent year-over-year.
Azoty said the pandemic outbreak during 2020 posed some “major challenges,” but its financial performance was supported by “sustained demand” in the group’s key business segment Fertilisers/Agro, its biggest business division, according to an April 15 company statement.
“The agricultural sector proved resilient to the headwinds, with increased sales volumes achieved,” said Azoty. “Fertilisers/Agro accounted for 60 percent of the group’s total revenue and 62 percent of the EBITDA margin of 12.6 percent in FY2020.”
Fertilisers/Agro generated full-year revenue of Pln6.36 billion, a 5 percent decline on the previous year’s Pln6.72 billion.
Azoty said it stepped up efforts during 2020 to roll out products compliant with the requirements of the European “Green Deal.” An example of this was “Pulurea+INur.,” a urea fertilizer treated with a urease inhibitor, which is the group’s response to the European Union’s National Emissions Reductions Commitments (NEC) Directive requirements to reduce ammonia emissions into the atmosphere.
The Polish group highlighted that although the use of urea with inhibitors will only become obligatory in Poland beginning Aug. 1, 2021, the product already has been available from the group for several months.
Azoty also operates Chemicals and Plastics business segments.